By Luna, Seaman, Capelo                               H.B. No. 1655
         76R4787 DAK-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the rate and allocation of the hotel occupancy tax in
 1-3     certain municipalities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 351.003, Tax Code, is amended by adding
 1-6     Subsection (d) to read as follows:
 1-7           (d)  The rate in a municipality that borders on the Gulf of
 1-8     Mexico and has a population of more than 250,000 may not exceed
 1-9     nine percent of the price paid for a room.
1-10           SECTION 2.  Subchapter B, Chapter 352, Tax Code, is amended
1-11     by adding Section 352.109 to read as follows:
1-12           Sec. 352.109.  USE OF REVENUE; CERTAIN LARGE COASTAL
1-13     MUNICIPALITIES.  (a)  This section applies only to a municipality
1-14     that borders on the Gulf  of Mexico and has a population of more
1-15     than 250,000.
1-16           (b)  A municipality to which this section applies shall
1-17     separately account for all revenue derived from the application of
1-18     the tax imposed by this chapter at a rate of more than seven
1-19     percent of the cost of a room.
1-20           (c)  Revenue described by Subsection (b) may be used only
1-21     for:
1-22                 (1)  acquiring land for a municipally-owned convention
1-23     center;
1-24                 (2)  constructing, improving, enlarging, equipping,
 2-1     repairing, operating, and maintaining a municipally-owned
 2-2     convention center; and
 2-3                 (3)  paying bonds used to finance activities in
 2-4     Subdivision (1) or (2).
 2-5           (d)  For the purpose of the allocation of revenue under
 2-6     Section 351.103, revenue described by Subsection (b) is not
 2-7     counted.
 2-8           SECTION 3.  If on or after the effective date of this Act a
 2-9     municipality increases the rate of the tax authorized by Section
2-10     351.003(d), Tax Code, as added by this Act, the increased tax rate
2-11     does not apply to the tax imposed on the use or possession of a
2-12     room under a contract executed before the effective date of this
2-13     Act that provides for the payment of the tax at the rate in effect
2-14     when the contract was executed, unless the contract is subject to
2-15     change or modification by reason of the tax rate increase.  The tax
2-16     rate applicable to the use or possession of a room under the
2-17     contract is the rate in effect when the contract was executed, and
2-18     the law governing that rate is continued in effect for that
2-19     purpose.
2-20           SECTION 4.  The importance of this legislation and the
2-21     crowded condition of the calendars in both houses create an
2-22     emergency and an imperative public necessity that the
2-23     constitutional rule requiring bills to be read on three several
2-24     days in each house be suspended, and this rule is hereby suspended,
2-25     and that this Act take effect and be in force from and after its
2-26     passage, and it is so enacted.