SRC-JRN S.B. 705 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 705
By: Patterson
Intergovernmental Relations
3-7-97
As Filed


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, S.B. 705 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 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.