HBA-ALS C.S.H.B. 710 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 710
By: Greenberg
Ways and Means
4/12/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, Texas offers a hotel occupancy tax exemption to a person
involved in the production of a motion picture who stays in the same hotel
for up to 30 days.  Although a film production company may produce a film
in Texas longer than 30 days, the film is often shot in a number of
locations, which prevents a person involved in the film production from
qualifying for the exemption.  The purpose of this bill is to create
incentives for the film industry to produce films in Texas, which may
increase economic development and employment opportunities in Texas.   

C.S.H.B. 710 exempts from the hotel occupancy tax a person involved in the
production of a motion picture who uses or possesses a room in one hotel or
in a consecutive series of two or more hotels for a cumulative period of at
least 15 days.  Under C.S.H.B. 710, the exempted person is required to pay
the imposed tax but is entitled to a refund of the tax paid. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter C, Chapter 156, Tax Code, by adding Section
156.104, as follows: 

Sec. 156.104. EXCEPTION--PERSONS INVOLVED IN MOTION PICTURE PRODUCTION.
Provides that subject to this section, this chapter does not impose a state
hotel occupancy tax on a person who is involved in the production of a
motion picture for consideration, a copy of which is sold or offered for
sale, licensed, distributed, broadcast, or exhibited, if that person has
the right to posses or use a room in one hotel or in  a consecutive series
of two or more hotels for a cumulative period of at least 15 days.
Requires a person who is excepted from a state hotel occupancy tax under
this section to pay the imposed tax pursuant to this chapter and entitles
that person to a refund of the tax paid in accordance with Section 156.154
(Refund). 

SECTION 2.  Amends Section 156.154(a), Tax Code, to make conforming and
nonsubstantive changes. 

SECTION 3.  (a) Provides that this Act takes effect on the first day of the
first calendar quarter beginning on or after the earliest date that it may
take effect under Section 39, Article III, Texas Constitution (Time of
Taking Effect of Laws; Emergencies; Entry on Journal) 

           (b) Makes application of this Act prospective.

SECTION 4.  Emergency clause. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 1 (proposed Section
156.104, Tax Code) by exempting from state hotel occupancy tax a person
involved in the production of a motion picture  if that person possesses or
uses a room in one hotel or in a consecutive series of two or more hotels
for a cumulative period of at least 15 days, rather than in a consecutive
series of two or more hotels for a cumulative period of at least 30 days.