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


Senate Research CenterC.S.S.B. 1784
By: Lucio
Intergovernmental Relations
4/16/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

C.S.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 351.001, Tax Code, by adding Subdivision (11),
to define "eligible general-law coastal municipality." 

SECTION 2.  Amends Subchapter A, Chapter 351, Tax Code, by adding Sections
351.0021 and 351.0022, as follows: 

Sec.  351.0021.  TAX AUTHORIZED IN ELIGIBLE GENERAL-LAW COASTAL
MUNICIPALITY.  Authorizes an eligible general-law coastal municipality to
adopt the hotel occupancy tax authorized under Section 351.002 at an
election held in the municipality. 

Sec.  351.0022.  ELECTION PROCEDURE.  Provides that an election to adopt
the tax authorized under Section 351.002 in an eligible general-law
coastal municipality is called by the adoption of an ordinance by the
governing body of the municipality. 

SECTION 3.  Amends Section 351.003, Tax Code, by adding Subsection (d), to
prohibit the rate in an eligible general-law coastal municipality from
exceeding eight percent of the price paid for a room in a hotel. 

SECTION 4.  Amends Subchapter B, Chapter 351, Tax Code, by adding Section
351.1075, as follows: 
 
Section 351.1075.  ALLOCATION OF REVENUE.  ELIGIBLE GENERAL-LAW COASTAL
MUNICIPALITIES.  (a)  Requires an eligible general-law coastal
municipality to use the amount of revenue from the tax that is derived
from the application of the tax at a rate of more than seven percent of
the cost of the room only for certain purposes. 

(b)  Authorizes any interest income derived from the application of the
tax at the rate of more that seven percent of the cost of the room to be
used only for purposes provided by this section. 

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