SRC-JLB S.B. 1784 78(R)BILL ANALYSIS


Senate Research CenterS.B. 1784
By: Lucio
Intergovernmental Relations
6/24/2003
Enrolled


DIGEST AND PURPOSE 

S.B. 1784 provides a hotel occupancy tax for South Padre Island to provide
relief projects, including a traffic control system, to handle its
fluctuating yearly tourist population. 

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 351.003, Tax Code, by adding Subsection (d), as
follows: 

(d)  Authorizes a general-law municipality that borders on the Gulf of
Mexico and has a boundary that is within 30 miles of Mexico to by
ordinance increase the rate of the tax under Subsection (a) to a maximum
rate of 7.5 percent if the increase is approved by a majority of the
registered voters of the municipality voting at an election held for that
purpose. 

SECTION 2.  Amends Subchapter B, Chapter 351, Tax Code, by adding Section
351.1075, as follows: 

Sec. 351.1075.  ALLOCATION OF REVENUE:  CERTAIN GENERAL-LAW COASTAL
MUNICIPALITIES.  (a)  Authorizes a general-law municipality that borders
on the Gulf of Mexico and has a boundary that is within 30 miles of Mexico
to use revenue derived from a rate increase under Section 351.003(d),
including any interest earned on that revenue, only for beautifying, and
improving the access to and safety of, the portion of State Highway 100
known as Padre Boulevard. 

(b)  Prohibits the amount of revenue that a municipality uses for a
purpose described by Subsection (a) from exceeding the amount the
municipality spends for the same purpose from a source other than a tax
imposed under this chapter. 

SECTION 3.  Repealer:  Section 351.003(d) and Section 351.1075, Tax Code,
effective January 1, 2006. 

SECTION 4.  Effective date:  upon passage or September 1, 2003.