SRC-JLB S.B. 1111 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1111
78R8323 SMJ-DBy: West, Royce
Intergovernmental Relations
3/20/2003
As Filed


DIGEST AND PURPOSE 

The Local Government Code allows certain counties to impose car rental and
hotel occupancy taxes if the citizens of the county approve such taxes.
As proposed, S.B. 1111 allows Dallas County to levy an additional one
percent tax on car rentals and hotel room rates to help finance a new
sports stadium if the increase is approved by Dallas County voters. 

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 334.103, Local Government Code, by amending
Subsection (a) and adding Subsection (c), as follows: 

(a)  Provides that the tax authorized by this subchapter, except as
provided by Subsection (c), is imposed at a rate in increments of
one-eighth of one percent, not to exceed five percent, on the gross rental
receipts from the rental in the municipality or county of a motor vehicle. 

(c)  Authorizes a county with a population of more than two million that
is adjacent to a county with a population of more than one million to
impose the tax authorized by this subchapter at a rate not to exceed six
percent on the gross rental receipts from the rental in the county of a
motor vehicle. 

SECTION 2.  Amends Section 334.104(a), Local Government Code, as follows:

(a)  Authorizes a municipality or county that has adopted a tax under this
subchapter at a rate of less than five percent, except as provided by
Section 334.1041, to by ordinance or order increase the rate of the tax to
a maximum of five percent if the increase is approved by a majority of the
registered voters of that municipality or county voting at an election
called and held for that purpose. 

SECTION 3.  Amends Chapter 334E, Local Government Code, by adding Section
334.1041, as follows: 
 
Sec. 334.1041.  RATE INCREASE IN CERTAIN POPULOUS COUNTIES.  (a)  Provides
that this section applies only to a county with a population of more than
two million that is adjacent to a county with a population of more than
one million. 

(b)  Authorizes a county that has adopted a tax under this subchapter at a
rate of less than six percent to by order increase the rate of the tax to
a maximum of six percent if the increase is approved by a majority of the
registered voters of the county voting at an election called and held for
that purpose. 
  
(c)  Requires the ballot for the election to increase the rate of the tax
to be printed to permit voting for or against the proposition:  "The
increase of the motor vehicle rental tax for the purpose of financing
_____ (insert description of venue project) to a maximum rate of _______
percent (insert new maximum rate not to exceed six percent)." 
 
SECTION 4.  Amends Section 334.254, Local Government Code, as follows:
 
Sec. 334.254.  TAX RATE.  (a)  Authorizes the tax authorized by this
subchapter, except as provided by Subsection (c), to be imposed by a
municipality or county at any rate not to exceed two percent of the price
paid for a room in a hotel. 

  (b)  Makes no changes.

(c)  Authorizes a county with a population of more than two million that
is adjacent to a county with a population of more than one million to
impose the tax authorized by this subchapter at any rate not to exceed
three percent of the price paid for a room in a hotel. 

SECTION 5.  Effective date:  upon passage or September 1, 2003.