C.S.S.B. 1784 78(R)    BILL ANALYSIS


C.S.S.B. 1784
By: Lucio
Local Government Ways and Means
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

C.S.S.B. 1784 provides a hotel occupancy tax for South Padre Island to
beautify, improve the access to and safety of, the portion of State
Highway 100 known as Padre Boulevard. 

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 Section 351.003, Tax Code, by adding Subsection (d)
which allows a general-law municipality that borders on the Gulf of Mexico
and has a boundary that is within 30 miles of Mexico to increase, if
approved by a majority of registered voters, the rate of tax under
Subsection (a) to a maximum rate of 7.5 percent.   

SECTION 2. Amends Subchapter B, Chapter 351, Tax Code, by adding Sections
351.1075 which allows 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
interest, only for beautifying, and improving access to and safety of the
portion of State Highway 100 known as Padre Boulevard.  Additionally, the
revenue a municipality uses may not exceed the amount the municipality
spends for the same purpose from a source other than a tax imposed under
this chapter.  

SECTION 3. Effective January 1, 2006, Section 351.003(d) and 351.1075, Tax
Code, as added by this Act, are repealed. 

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

EFFECTIVE DATE

Upon passage or September 1, 2003.


COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 1784 changes the authorized tax increase that cannot be exceeded
from 8% to 7.5 %.  

The substitute provides a sunset provision on the tax.  Sections
351.003(d) and 351.1075, Tax Code, are repealed effective January 1, 2006. 

The bill now states that matching funds from other city funds must be
provided for projects in which money authorized by this bill are
undertaken. 

The substitute changes the description of projects to be undertaken in the
municipality and funded by the additional funds provided via this
legislation.