78R8466 T

By:  Hill                                                         H.B. No. 2386



A BILL TO BE ENTITLED

AN ACT

relating to the rate of hotel occupancy and motor vehicle rental 
taxes used to finance venue projects in certain counties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 334.103, Local Government Code, is 
amended to read as follows:
	Sec. 334.103.  SHORT-TERM RENTAL TAX.  (a)  Except as 
provided by Subsection (c), the [The] tax authorized by this 
subchapter is imposed at a rate in increments of one-eighth of one 
percent, not to exceed five percent, on the gross rental receipts 
from the rental in the municipality or county of a motor vehicle.
	(b)  The ballot proposition at the election held to adopt the 
tax must specify the maximum rate of the tax to be adopted.
	(c)  A county with a population of more than two million that 
is adjacent to a county with a population of more than one million 
may impose the tax authorized by this subchapter at any rate not to 
exceed six percent on the gross rental receipts from the rental in 
the county of a motor vehicle.
	SECTION 2.  Section 334.104(a), Local Government Code, is 
amended to read as follows:
	(a)  Except as provided by Section 334.1041, a [A] 
municipality or county that has adopted a tax under this subchapter 
at a rate of less than five percent may by ordinance or order 
increase the rate of the tax to a maximum of five percent if the 
increase is approved by a majority of the registered voters of that 
municipality or county voting at an election called and held for 
that purpose.
	SECTION 3.  Subchapter E, Chapter 334, Local Government 
Code, is amended by adding Section 334.1041 to read as follows:
	Sec. 334.1041.  RATE INCREASE IN CERTAIN POPULOUS COUNTIES.  
(a)  This section applies only to a county with a population of more 
than two million that is adjacent to a county with a population of 
more than one million.
	(b)  A county that has adopted a tax under this subchapter at 
a rate of less than six percent may by order increase the rate of the 
tax to a maximum of six percent if the increase is approved by a 
majority of the registered voters of the county voting at an 
election called and held for that purpose.
	(c)  The ballot for the election to increase the rate of the 
tax shall be printed to permit voting for or against the 
proposition:  "The increase of the motor vehicle rental tax for the 
purpose of financing _______ (insert description of venue project) 
to a maximum rate of _______ percent (insert new maximum rate not to 
exceed six percent)."
	SECTION 4.  Section 334.254, Local Government Code, is 
amended to read as follows:
	Sec. 334.254.  TAX RATE.  (a)  Except as provided by 
Subsection (c), the [The] tax authorized by this subchapter may be 
imposed by a municipality or county at any rate not to exceed two 
percent of the price paid for a room in a hotel.
	(b)  The ballot proposition at the election held to adopt the 
tax must specify the maximum rate of the tax to be adopted.
	(c)  A county with a population of more than two million that 
is adjacent to a county with a population of more than one million 
may impose the tax authorized by this subchapter at any rate not to 
exceed three percent of the price paid for a room in a hotel.
	SECTION 5.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.