SRC-JLB H.B. 2718 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2718
78R12754 SMJ-DBy: Smith, Wayne (Jackson)
Intergovernmental Relations
5/20/2003
Engrossed


DIGEST AND PURPOSE 

Currently, the Texas Tax Code allows for coastal municipalities to levy
and collect a hotel occupancy tax at a rate of seven percent and to pledge
at least one percent of that revenue to either or both the payment of
bonds issued for the establishment, acquisition, purchase, construction,
improvement, enlargement, maintenance, or operation of facilities that
serve the purpose of attracting visitors and tourists.  However, this form
of occupancy taxing is not available to home-rule municipalities adjacent
to bays.  H.B. 2718 allows home-rule municipalities adjacent to a bay of
this state, with a population less than 80,000, to allocate revenues for
items that are currently allowable for eligible coastal communities. 

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 Subchapter B, Chapter 351, Tax Code, by adding Section
351.104, as follows: 
 
Sec. 351.104.  ALLOCATION OF REVENUE:  CERTAIN MUNICIPALITIES BORDERING
BAYS.  (a)  Provides that this section applies only to a home-rule
municipality that borders a bay, that has a population of less than
80,000, and that is not an eligible coastal municipality. 
 
  (b)  Defines "adjacent public land" and "clean and maintain."

(c)  Prohibits a municipality to which this section applies,
notwithstanding any other provision of this chapter, from using more than
10 percent of the revenue derived from the tax imposed under this chapter
for certain purposes. 

(d)  Prohibits a municipality to which this section applies from reducing
the amount of revenue that it uses for a purpose described by Section
351.101(a)(3) to an amount that is less than the average amount of revenue
used by the municipality for that purpose during the 36-month period that
precedes the municipality's use of revenue under Subsection (c). 
 
SECTION 2.  Effective date:  September 1, 2003.