By Ritter, Deshotel, Lewis of Orange                  H.B. No. 2758
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of certain counties to impose a hotel
 1-3     occupancy tax and to the rate of the tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 352.002(d), Tax Code, is amended to read
 1-6     as follows:
 1-7           (d)  The tax imposed by a county authorized by Subsection
 1-8     (a)(4), (6), (8), (10), (11), or (12) to impose the tax does not
 1-9     apply to a hotel located in a municipality that imposes a tax under
1-10     Chapter 351 applicable to the hotel.  This subsection does not
1-11     apply to a county authorized by Subsection (a)(6) to impose the tax
1-12     that:
1-13                 (1)  has a population of less than 40,000 and adjoins
1-14     the most populous county in this state; or
1-15                 (2)  has a population of more than 200,000 and borders
1-16     the Neches River.
1-17           SECTION 2. Section 352.003, Tax Code, is amended by adding
1-18     Subsection (f) to read as follows:
1-19           (f)  The tax rate in a county that borders the Gulf of
1-20     Mexico, has a population of more than 200,000, and borders the
1-21     Neches River may not exceed two percent of the price paid for a
1-22     room in a hotel in the county.
1-23           SECTION 3.  This Act takes effect immediately if it receives
1-24     a vote of two-thirds of all the members elected to each house, as
 2-1     provided by Section 39, Article III, Texas Constitution.  If this
 2-2     Act does not receive the vote necessary for immediate effect, this
 2-3     Act takes effect September 1, 2001.