SRC-JRN H.B. 1424 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1424
By: Eiland (Patterson)
Intergovernmental Relations
4-11-97
Engrossed


DIGEST 

Currently, there is no state law that provides for the imposition of a
municipal sales and use tax and hotel occupancy tax in areas to be annexed
by certain municipalities.  Some municipalities planning to annex cities
may be providing sewer and water services to those cities.  This bill
authorizes certain municipal areas to impose a municipal sales and use tax
and a hotel occupancy tax.   

PURPOSE

As proposed, H.B. 1424 authorizes certain municipal areas to impose a
municipal sales and use tax and a hotel occupancy tax.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 43.0751, Local Government Code, by adding
Subsection (n), to provide that this subsection applies only to a
municipality any portion of which is located in a county that has a
population of more than 200,000 and that borders the Gulf of Mexico and is
adjacent to a county with a population of more than 2.8 million.
Authorizes a municipality to impose, within the boundaries of a water
control and  improvement district or a municipal utility district created
or operating under Chapter 51 or 54, Water Code, a municipal sales and use
tax or a municipal hotel occupancy tax, under certain conditions. 

SECTION 2. Emergency clause.
  Effective date: upon passage.