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.