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 351, Tax Code, is amended
1-11 by adding Section 351.107 to read as follows:
1-12 Sec. 351.107. ALLOCATION 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) Subject to Subsection (e), revenue described by
1-21 Subsection (b) may be used only 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 described
2-4 by 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 (e) Notwithstanding any other provision of this chapter, a
2-9 municipality to which this section applies may use all or any
2-10 portion of the revenue derived from the municipal hotel occupancy
2-11 tax from hotels previously subject to a county hotel occupancy tax
2-12 to clean and maintain public beaches in the municipality.
2-13 (f) In this section:
2-14 (1) "Clean and maintain" has the meaning assigned by
2-15 Section 61.063, Natural Resources Code.
2-16 (2) "Public beach" has the meaning assigned by Section
2-17 61.001, Natural Resources Code.
2-18 SECTION 3. If on or after the effective date of this Act a
2-19 municipality increases the rate of the tax authorized by Section
2-20 351.003(d), Tax Code, as added by this Act, the increased tax rate
2-21 does not apply to the tax imposed on the use or possession of a
2-22 room under a contract executed before the effective date of this
2-23 Act that provides for the payment of the tax at the rate in effect
2-24 when the contract was executed unless the contract is subject to
2-25 change or modification by reason of the tax rate increase. The tax
2-26 rate applicable to the use or possession of a room under the
2-27 contract is the rate in effect when the contract was executed, and
3-1 the law governing that rate is continued in effect for that
3-2 purpose.
3-3 SECTION 4. The importance of this legislation and the
3-4 crowded condition of the calendars in both houses create an
3-5 emergency and an imperative public necessity that the
3-6 constitutional rule requiring bills to be read on three several
3-7 days in each house be suspended, and this rule is hereby suspended,
3-8 and that this Act take effect and be in force from and after its
3-9 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1655 was passed by the House on April
30, 1999, by the following vote: Yeas 138, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1655 on May 26, 1999, by the following vote: Yeas 144, Nays 0,
2 present, not voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1655 was passed by the Senate, with
amendments, on May 24, 1999, by the following vote: Yeas 30, Nays
0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor