1-1 By: Truan S.B. No. 1508 1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; April 12, 1999, reported favorably by the following 1-5 vote: Yeas 5, Nays 0; April 12, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the rate and allocation of the hotel occupancy tax in 1-9 certain municipalities. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Section 351.003, Tax Code, is amended by adding 1-12 Subsection (d) to read as follows: 1-13 (d) The rate in a municipality that borders on the Gulf of 1-14 Mexico and has a population of more than 250,000 may not exceed 1-15 nine percent of the price paid for a room. 1-16 SECTION 2. Subchapter B, Chapter 352, Tax Code, is amended 1-17 by adding Section 352.109 to read as follows: 1-18 Sec. 352.109. USE OF REVENUE; CERTAIN LARGE COASTAL 1-19 MUNICIPALITIES. (a) This section applies only to a municipality 1-20 that borders on the Gulf of Mexico and has a population of more 1-21 than 250,000. 1-22 (b) A municipality to which this section applies shall 1-23 separately account for all revenue derived from the application of 1-24 the tax imposed by this chapter at a rate of more than seven 1-25 percent of the cost of a room. 1-26 (c) Revenue described by Subsection (b) may be used only 1-27 for: 1-28 (1) acquiring land for a municipally owned convention 1-29 center; 1-30 (2) constructing, improving, enlarging, equipping, 1-31 repairing, operating, and maintaining a municipally owned 1-32 convention center; and 1-33 (3) paying bonds used to finance activities in 1-34 Subdivision (1) or (2). 1-35 (d) For the purpose of the allocation of revenue under 1-36 Section 351.103, revenue described by Subsection (b) is not 1-37 counted. 1-38 SECTION 3. If on or after the effective date of this Act a 1-39 municipality increases the rate of the tax authorized by Subsection 1-40 (d), Section 351.003, Tax Code, as added by this Act, the increased 1-41 tax rate does not apply to the tax imposed on the use or possession 1-42 of a room under a contract executed before the effective date of 1-43 this Act that provides for the payment of the tax at the rate in 1-44 effect when the contract was executed, unless the contract is 1-45 subject to change or modification by reason of the tax rate 1-46 increase. The tax rate applicable to the use or possession of a 1-47 room under the contract is the rate in effect when the contract was 1-48 executed, and the law governing that rate is continued in effect 1-49 for that purpose. 1-50 SECTION 4. The importance of this legislation and the 1-51 crowded condition of the calendars in both houses create an 1-52 emergency and an imperative public necessity that the 1-53 constitutional rule requiring bills to be read on three several 1-54 days in each house be suspended, and this rule is hereby suspended, 1-55 and that this Act take effect and be in force from and after its 1-56 passage, and it is so enacted. 1-57 * * * * *