SRC-JJJ H.B. 1655 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1655
76R4787 DAK-FBy: Luna, Vilma (Truan)
Intergovernmental Relations
5/10/1999
Engrossed


DIGEST 

Currently, the city of Corpus Christi enforces a municipal hotel occupancy
tax at a rate of no more than seven percent of the room price.  The city
would like to expand its convention center. H.B. 1655 would establish
conditions regarding the rate and allocation of the hotel occupancy tax in
certain municipalities. 

PURPOSE

As proposed, H.B. 1655 establishes conditions regarding the rate and
allocation of the hotel occupancy tax in certain municipalities. 

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 351.003, Tax Code, by adding Subsection (d), to
prohibit the rate in a municipality that borders on the Gulf of Mexico and
has a population of more than 250,000 from exceeding nine percent of the
price paid for a room. 

SECTION 2.  Amends Chapter 352B, Tax Code, by adding Section 352.109, as
follows: 

Sec. 352.109.  USE OF REVENUE; CERTAIN LARGE COSTAL MUNICIPALITIES.
Provides that this section applies only to a municipality that borders on
the Gulf of Mexico and has a population of 250,000 or more.  Requires a
municipality to which this section applies to separately account for all
revenue derived from the application of the tax imposed by this chapter at
a rate of more than seven percent of the cost of the room. Authorizes
revenue to be used only for certain purposes.  Provides that for the
purpose of the allocation of revenue under Section 351.103, revenue
described by Subsection (b) is not counted.   

SECTION 3.  Makes application of this Act prospective.

SECTION 4.  Emergency clause.
  Effective date: upon passage.