SRC-SEW S.B. 1183 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1183
77R8177 CBH-DBy: Van de Putte
Intergovernmental Relations
4/10/2001
As Filed


DIGEST AND PURPOSE 

Currently, car rental companies do not receive reimbursement for expenses
of collecting payment of short-term motor vehicles taxes.  However, current
law allows a county that collects a hotel/motel tax to give a hotel that
collects the tax one percent of the tax as a collection fee.  In order to
encourage early payment of taxes collected and equalize tax incentives
provided to travel service providers, S.B. 1183, as proposed, requires
municipalities that impose a short-term motor vehicle tax to give car
rental companies one percent of the taxes collected under certain
conditions. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 334E, Local Government Code, by adding Section
334.1135, as follows: 

Sec.  334.1135.  REIMBURSEMENT FOR TAX COLLECTION EXPENSES. 
(a) Requires a municipality, subject to Subsection (b), to allow a person
who is required to collect and remit the tax imposed under this subchapter
one percent of the amount collected and required to be remitted as
reimbursement to the person for the costs of collecting the tax. 

(b) Provides that a person required to collect and remit the tax imposed
under this subchapter is not entitled to reimbursement under Subsection (a)
unless the municipality receives the amount required to be collected by a
certain date. 

SECTION 2.  Effective date: September 1, 2001.  
  Makes application of this Act prospective.