78R7666 T
By: Eiland H.B. No. 1459
A BILL TO BE ENTITLED
AN ACT
relating to hotel taxes in coastal municipalities with a population
of 5000 or less.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Amend the definition of eligible coastal
municipality in Section 351.001(3), Tax Code, to read as follows:
(3) "Eligible Coastal Municipality" means a home-rule
municipality that borders on the Gulf of Mexico and has a population
of less than 80,000 or an adjacent municipality of less than 5000
population."
SECTION 2. Amend Section 351.1005, Tax Code, to read as
follows:
Sec. 351.1055. ALLOCATION OR REVENUE: CERTAIN [HOME RULE]
MUNICIPALITIES. (a) In this section:
(1) "Clean and maintain" has the meaning assigned by
Section 61.063, Texas Natural Resources Code.
(2) "Public Beach" has the meaning assigned by Section
61.001, Natural Resources Code.
(3) "Beach Security" means beach patrol, lifeguard
services, marine water safety, and park law enforcement.
(b) Notwithstanding any other provision of this chapter, a
home-rule municipality that borders on the Gulf of Mexico and has a
population of more than 250,000 may uses all or any portion of the
revenue derived from the municipal hotel occupancy tax from hotels
previously subject to a county hotel occupancy tax to clean and
maintain public beaches in the municipality.
(c) Notwithstanding any other provision of this chapter, an
eligible coastal municipality that has a population of less than
5000 population may use all or any portion of the revenue heretofore
or hereafter derived from the municipal hotel tax to (i) clean and
maintain the beaches in the municipality, (ii) provide beach
security within the municipality, (iii) for any of the purposes
permitted allowed by Article 1269j4.1 Revised Statutes of Texas,
(iv) for any purpose allowed by Section 351.105 Tax Code, or (v) to
pay the principal or interest on bonds or notes issued for any of
these purposes.
SECTION 3. Amend Section 351.003, Tax Code, to read as
follows:
Sec. 351.003. TAX RATES. (a) Except as provided by this
section, the tax rate authorized by this chapter may be imposed at
any rate not to exceed seven percent of the price paid for a room in
a hotel.
(b) The rate in an eligible central municipality may not
exceed nine percent of the price paid for a room. This subsection
does not apply to a municipality to which Section 351.106 applies.
(c) The rate in a municipality that borders on the Gulf of
Mexico and has a population of more than 250,000 or in an eligible
coastal municipality with a population of less than 5000 may not
exceed nine percent of the price paid for a room.
SECTION 4. This Act shall take effect September 1, 2003.