By: West, et al. S.B. No. 1111
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 by amending Subsection (a) and adding Subsection (c) to
read as follows:
(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.
(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 a rate not to
exceed six percent on the gross rental receipts from the rental in
the county of a motor vehicle.
SECTION 2. Subsection (a), Section 334.104, 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.