H.B. 1459 78(R)    BILL ANALYSIS


H.B. 1459
By: Eiland
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Coastal home-rule cities of less than 80,000 (defined as an "Eligible
Coastal Municipality" in the Tax Code) have been granted a hotel occupancy
tax rebate of a portion of the hotel occupancy taxes collected by the
State in the Eligible Coastal Municipality to be used for beach cleaning
and maintenance.  H.B. 1459 will authorize the same rebate to a general
law municipality of less than 5,000 that is adjacent to such a
municipality.  

The purposes for which hotel occupancy taxes can be used are restricted by
Chapter 351 of the Tax Code. With these limitations small municipalities
are not able to find enough places to use their hotel occupancy taxes
efficiently. H.B. 1459 will broaden the purposes for which hotel occupancy
taxes can be used.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1
Amends the definition of an Eligible Coastal Municipality to include a
general law municipality of less that 5,000 adjacent to home-rule
municipality that borders the Gulf of Mexico and has a population of less
than 80,000. 

SECTION 2
Adds a definition of Beach Security to Section 351.1055, Tax Code, and
permits the use of all or any part of the hotel occupancy taxes collected
by an Eligible Coastal Municipality of less 5,000 population for: (i)
cleaning and maintaining beaches, (ii) providing beach security, (iii)
providing and maintaining improvements permitted by parks and similar
types of improvements and facilities to serve such improvements, (iv) for
purposes authorized by 351.105, Tax Code, or (v) to pay for the principal
and interest on bonds or notes. 

SECTION 3
Amends Section 351.003, Tax Code, to grant to an Eligible Coastal
Municipality of 5,000 or less the power to levy a hotel occupancy tax at
the same 9% rate as a municipality of 250,000 or more that borders the
Gulf of Mexico. 

EFFECTIVE DATE

September 1, 2003.