By:  Rangel                                                       H.B. No. 3372


A BILL TO BE ENTITLED
AN ACT
relating to eligible general-law coastal municipalities imposition of an additional Hotel Occupancy Tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 351.001, Tax Code, is amended by adding a new definition to Section 351.001 to read as follows: (1) "Municipality" includes any incorporated city, town, or village. (2) "Convention center facilities" or "convention center complex" means facilities that are primarily used to host conventions and meetings. The term means civic centers, civic center buildings, auditoriums, exhibition halls, and coliseums that are owned by the municipality or other governmental entity or that are managed in whole or part by the municipality. In a municipality with a population of 1.5 million or more, "convention center facilities" or "convention center complex" means civic centers, civic center buildings, auditoriums, exhibition halls, and coliseums that are owned by the municipality or other governmental entity or that are owned by the municipality or other governmental entity or that are managed in part by the municipality, hotels owned by the municipality or a nonprofit municipally sponsored local government corporation created under Chapter 431, Transportation Code, within 1,000 feet of a convention center owned by the municipality, or a historic hotel owned by the municipality or a nonprofit municipally sponsored local government corporation created under Chapter 431, Transportation Code, within one mile of a convention center owned by the municipality. The term includes parking areas or facilities that are for the parking or storage of conveyances and that are located at or in the vicinity of other convention center facilities. The term also includes a hotel owned by or located on land that is owned by an eligible central municipality or by a nonprofit corporation acting on behalf of an eligible central municipality and that is located within 1,000 feet of a convention center facility owned by the municipality. (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. (4) "Hotel" has the meaning assigned by Section 156.001. (5) "Tourism" means the guidance or management of tourists. (6) "Tourist" means an individual who travels from the individual's residence to a different municipality, county, state, or country for pleasure, recreation, education, or culture. (7) "Eligible central municipality" means a municipality with a population of more than 440,000 but less than 1.5 million that is located in a county with a population of one million or more and that is located in a country with a population of one million or more and that has adopted a capital improvement plan for the expansion of an existing convention center facility. (8) "Visitor information center" or "tourism information center" means a building or a portion of a building used to distribute or disseminate information to tourists. (9) "Revenue" includes any interest derived from the revenue. (10) "Revenue" includes any interest derived from the revenue. (11) "Eligible general-law coastal municipality" means a general-law municipality: (a) that has a population of less than 5,000 (b) that borders on the Gulf of Mexico (c) the boundaries of which are within 30 miles of the United Mexican States. Section 2. Section, Chapter 351, Tax Code, is amended by adding a new subsection to Section 351.003 to read as follows: (a) Except as provided by this section, the tax 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 may not exceed nine percent of the price paid for a room. (d) The rate of an eligible general-law coastal municipality may not exceed eight percent of the price paid for a room in a hotel. Section 3. Section 351, Tax Code, is amended by adding Section 351.1075 to read as follows: Section 351.1075. Allocation of Revenue. Eligible General-Law Coastal Municipalities. (a) An eligible General-Law Coastal Municipality shall use the amount of revenue from the tax that is derived from the application of the rate at a rate of more than seven percent of the cost of the room only for: (1) The maintenance, improvement, or operation of parks, trolley, or trolley transportation system, or other facilities, as may be considered advisable in connection with these facilities that serve the purpose attracting visitors and tourists to the municipality; and (2) The maintenance, improvement or operation of a beautification plan of the town's facilities that serves the purpose of attracting visitors and tourists to the municipality (3) Enhancing and providing for public beach access and other facilities, including restrooms and other infrastructures that serve the purpose of attracting visitors and tourists to the municipality. (b) Any interest income derived from the application of the tax at the rate of more than seven percent of the cost of the room may be used only for purposes in this section. Section 4. 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.