By Thompson                                            H.B. No. 147
         76R1074 CBH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the application and collection of the state hotel
 1-3     occupancy tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 156.001, Tax Code, is amended to read as
 1-6     follows:
 1-7           Sec. 156.001.  DEFINITION.  In this chapter, "hotel" means a
 1-8     building in which members of the public obtain sleeping
 1-9     accommodations for consideration.  The term includes a hotel,
1-10     motel, tourist home, tourist house, tourist court, lodging house,
1-11     inn, rooming house, or bed and breakfast.  The term does not
1-12     include:
1-13                 (1)  a hospital, sanitarium, or nursing home;  [or]
1-14                 (2)  a mental health facility, as that term is defined
1-15     by Section 571.003, Health and Safety Code; or
1-16                 (3)  a dormitory or other housing facility owned or
1-17     leased and operated by an institution of higher education or a
1-18     private or independent  institution of higher education as those
1-19     terms are defined by  Section 61.003, Education Code, used by the
1-20     institution for the purpose of providing sleeping accommodations
1-21     for persons engaged in an educational program or activity at the
1-22     institution.
1-23           SECTION 2.  Section 156.051(b), Tax Code, is amended to read
1-24     as follows:
 2-1           (b)  The price of a room or space in a hotel does not include
 2-2     the cost of food served by the hotel and the cost of personal
 2-3     services  performed by the hotel for the person except for those
 2-4     services related to cleaning and readying the room or space for use
 2-5     or possession.
 2-6           SECTION 3.  Sections 156.052, 156.053, and 156.101, Tax Code,
 2-7     are amended to read as follows:
 2-8           Sec. 156.052.  RATE OF TAX.  The rate of the tax imposed by
 2-9     this chapter is six percent of the price paid for a room or space
2-10     in a hotel.
2-11           Sec. 156.053.  COLLECTION OF TAX.  A person owning,
2-12     operating, managing, or controlling a hotel shall collect for the
2-13     state the tax that is imposed by this chapter and that is
2-14     calculated on the amount paid for a room or space in the hotel.
2-15           Sec. 156.101.  EXCEPTION--PERMANENT RESIDENT.  This chapter
2-16     does not impose a tax on a person who has the right to use or
2-17     possess a room or space in a hotel for at least 30 consecutive
2-18     days, so long as there is no interruption of payment for the
2-19     period.
2-20           SECTION 4.  Section 156.103(a), Tax Code, is amended to read
2-21     as follows: 
2-22           (a)  Subject to this section, this chapter does not impose a
2-23     tax on:
2-24                 (1)  the United States, this state, or an agency,
2-25     institution, board, or commission of this state other than an
2-26     institution of higher education;
2-27                 (2)  an officer or employee of a state governmental
 3-1     entity described by Subdivision (1) when traveling on or otherwise
 3-2     engaged in the course of official duties for the governmental
 3-3     entity; or
 3-4                 (3)  an officer or employee of a governmental entity of
 3-5     the United States when traveling on or otherwise engaged in the
 3-6     course of official duties for the governmental entity if the
 3-7     governmental entity directly pays to the hotel the price for the
 3-8     room or space.
 3-9           SECTION 5.  Section 156.151(a), Tax Code, is amended to read
3-10     as follows:
3-11           (a)  A person required to collect the tax imposed by this
3-12     chapter shall pay the comptroller the tax collected during the
3-13     preceding reporting period and at the same time shall file with the
3-14     comptroller a report stating:
3-15                 (1)  the total amount of the payments made for rooms
3-16     and spaces at the person's hotel during the preceding reporting
3-17     period;
3-18                 (2)  the amount of the tax collected by the person
3-19     during the preceding reporting period; and
3-20                 (3)  other information that the comptroller requires to
3-21     be in the report.
3-22           SECTION 6.  Section 156.202(c), Tax Code, is amended to read
3-23     as follows:
3-24           (c)  The minimum penalty under this section is $5 [$1].
3-25           SECTION 7.  Section 156.204(e), Tax Code, is amended to read
3-26     as follows:
3-27           (e)  The period of limitation during which the comptroller
 4-1     may assess tax against the purchaser under this section is four
 4-2     years from the date when the former owner of the hotel sells the
 4-3     hotel or when a determination is made against the former owner,
 4-4     whichever event occurs later.  At any time within four [three]
 4-5     years after a deficiency determination against the purchaser has
 4-6     become due and payable the comptroller may bring an action in a
 4-7     district court of Travis County or a court of any other state of
 4-8     the United States in the name of the people of Texas to collect the
 4-9     delinquent amounts together with penalties and interest.
4-10           SECTION 8.   (a)  This Act takes effect September 1, 1999.
4-11           (b)  The changes in Sections 156.202(c) and 156.204(e), Tax
4-12     Code, made by this Act do not affect the collection or the
4-13     enforcement of taxes imposed before the effective date of this Act,
4-14     and the law in effect before the effective date of this Act is
4-15     continued in effect for purposes of the liability for and
4-16     collection of those taxes.
4-17           SECTION 9.  The importance of this legislation and the
4-18     crowded condition of the calendars in both houses create an
4-19     emergency and an imperative public necessity that the
4-20     constitutional rule requiring bills to be read on three several
4-21     days in each house be suspended, and this rule is hereby suspended.