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.