SRC-SEW S.B. 1393 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1393
77R8716 CBH-DBy: Bernsen
Intergovernmental Relations
3/18/2001
As Filed


DIGEST AND PURPOSE 

Current law allows certain counties to impose hotel occupancy tax increases
within their respective incorporated municipalities.  As proposed, S.B.
1393 allows for a 2 percent increase in taxes on hotel and motel rooms in
Jefferson County in order to generate $400,000 to $500,000 in annual
revenue that county officials can use to promote tourism and conventions in
the area.   

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 Section 352.002(d), Tax Code, to provide that the tax
imposed by a county authorized by Subsection (a)(12), as added by Chapter
469, Acts of the 75th Legislature, Regular Session, 1997, to impose the tax
does not apply to a hotel located in a municipality that imposes a tax
under Chapter 351 applicable to the hotel.  Provides that this subsection
does not apply to a county authorized by Subsection (a)(6) to impose the
tax that has a population of more than 200,000 and borders the Neches
River. 

SECTION 2.  Amends Section 352.003, Tax Code, by adding Subsection (f), to
prohibit the tax rate in a county that borders the Gulf of Mexico, has a
population of more than 200,000, and borders the Neches River from
exceeding two percent of the price paid for a room in a hotel in the
county. 

SECTION 3.  Effective date: upon passage or September 1, 2001.