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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.