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


Senate Research CenterC.S.H.B. 1655
76R4787 DAK-FBy: Luna, Vilma (Truan)
Intergovernmental Relations
5/13/1999
Committee Report (Substituted)


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. C.S.H.B. 1655 would establish
conditions regarding the rate and allocation of the hotel occupancy tax in
certain municipalities. 

PURPOSE

As proposed, C.S.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 351B, Tax Code, by adding Section 352.107, as
follows: 

Sec. 352.107.  ALLOCATION 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 more than 250,000.  Requires a
municipality to separately account for all revenue derived from the
application of the imposed tax at a rate of more than seven percent of the
cost of a room.  Sets forth conditions for which the revenue described by
Subsection (b) may be used.  Provides that for the purpose of the
allocation of revenue under Section 351.103, revenue described by
Subsection (b) is not counted. Authorizes a municipality to which this
section applies to use all or any portion of the tax 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. Defines "clean and maintain" and "public beach" 

SECTION 3.  Makes application of this Act prospective.

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