SRC-TNM S.B. 420 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 420
By: Cain
Intergovernmental Relations
2-24-97
As Filed


DIGEST 

Currently, Section 352.002, Tax Code, authorizes certain counties to
impose a hotel occupancy tax. If a county is covered under this section,
the commissioners court of that county may impose the tax by adoption of
an order for resolution.   S.B. 420 would amend Section 352.002(a), Tax
Code, by adding Wood County in Subsection (12).  Section 325.002, Tax
Code, restricts the use of these funds for general promotional and tourist
advertising of the county and its vicinity.   

S.B. 420 would authorize Wood County to collect a 7 percent local hotel
occupancy tax.  This tax would be designated for the enhancement and
promotion of tourism, convention, and hotel industries and is charged on
hotel room price only by the following entities: hotel, motel, tourist
home or court, lodging or rooming house, and inns for sleeping.  The tax
would be excluded from the county's general revenue purposes.  All tax
receipts resulting from this legislation would be used for promoting Wood
County to attract tourists.  An annual budget for expenditures would be
submitted to the commissioners court each year for approval.  

PURPOSE

As proposed, S.B. 420 outlines provisions regarding the authority of
certain counties to impose a county 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 352.002(a), Tax Code, to authorize, among
others, the commissioners court of a county that has a population of
29,000 or more and borders a portion of Lake Fork Reservoir to impose a
county hotel occupancy tax. 

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