SRC-JFA H.B. 2832 75(R) BILL ANALYSIS Senate Research Center H.B. 2832 By: Gallego (Madla) Intergovernmental Relations 5-2-97 Engrossed DIGEST Currently, Section 352.002, Tax Code, authorizes certain counties to impose a hotel occupancy tax. The commissioners court of those counties may impose the tax by the adoption of an order or resolution. This bill would allow the commissioners court of a county that borders the Republic of Mexico and in which there is located a national recreation area (Val Verde County), by the adoption of an order or resolution, to impose a hotel occupancy tax. Additionally, this bill would set forth the uses of revenue generated from such a tax. PURPOSE As proposed, H.B. 2832 authorizes the commissioner court of a county that borders the Republic of Mexico and in which there is located a national recreation area, by the adoption of an order or resolution, to impose a hotel occupancy tax. This bill, additionally, sets forth the uses of revenue generated from such a tax. RULEMAKING AUTHORITY Rulemaking authority is granted to the commissioners court of a county that borders the Republic of Mexico and in which there is located a national recreation area in SECTION 1 (Section 352.002(a)(12), Tax Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 352.002(a), Tax Code, to authorize the commissioners court of a county that borders the Republic of Mexico and in which there is located a national recreation area, among other commissioners courts, by the adoption of an order or resolution, to impose a tax on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room that is in a hotel, costs $2 or more each day, and is ordinarily used for sleeping. Makes a conforming change. SECTION 2. Amends Chapter 352B, Tax Code, by adding Section 352.108, as follows: Sec. 352.108. USE OF REVENUE; CERTAIN COUNTIES THAT BORDER MEXICO AND CONTAIN A NATIONAL RECREATION AREA. Authorizes a county authorized to impose a tax under this chapter by Section 352.002(a)(12) to use 75 percent of the revenue for the promotion of tourism; and 25 percent of the revenue for the general revenue purposes or general governmental operations of the county. SECTION 3. Emergency clause. Effective date: upon passage.