HBA-JRA H.B. 1655 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1655
By: Luna, Vilma
Ways & Means
7/22/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, the city of Corpus Christi enforced 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 raises the limit on the municipal hotel occupancy tax rate to nine
percent and specifies that this tax be used to improve the city's
convention center.  This bill also authorizes a municipality to which this
section applies to use all or any portion of the revenue derived from the
municipal hotel occupancy tax from hotels previously subject to a county
hotel occupancy tax to clean and maintain public beaches in the
municipality. 

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 Section 351.003, Tax Code, by adding Subsection (d), as
follows: 

(d)  Prohibits the rate of a municipal hotel occupancy tax 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 Subchapter B, Chapter 351, Tax Code, by adding Section
351.107, as follows: 

Sec. 351.107.  ALLOCATION OF REVENUE; CERTAIN LARGE COASTAL MUNICIPALITIES.
(a)  Provides that this section applies only to a municipality that borders
on the Gulf of Mexico and has a population of more than 250,000. 

(b)  Requires a municipality to which this section applies to 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 a room. 

(c)  Authorizes, subject to Subsection (e), revenue described by Subsection
(b) to be used only for acquiring land for a municipally-owned convention
center; constructing, improving, enlarging, equipping, repairing,
operating, and maintaining a municipallyowned convention center; and paying
bonds used to finance such activities. 

(d)  Provides that revenue described by Subsection (b) is not counted for
the purpose of the allocation of revenue under Section 351.103 (Allocation
of Revenue; General Rule), Tax Code. 

(e)  Authorizes a municipality to which this section applies to use all or
any portion of the revenue derived from the municipal hotel occupancy tax
from hotels previously subject to a county hotel occupancy tax to clean and
maintain public beaches in the municipality. 

(f)  Defines "clean and maintain" and "public beach."
 
SECTION 3.  Makes application of this Act prospective.

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