By: Lucio S.B. No. 1784
A BILL TO BE ENTITLED
AN ACT
relating to the imposition of a hotel occupancy tax in eligible
general-law coastal municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.001, Tax Code, is amended by adding
Subdivision (11) to read as follows:
(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; and
(C) the boundaries of which are within 30 miles
of the United Mexican States.
SECTION 2. Subchapter A, Chapter 351, Tax Code, is amended
by adding Sections 351.0021 and 351.0022 to read as follows:
Sec. 351.0021. TAX AUTHORIZED IN ELIGIBLE GENERAL-LAW
COASTAL MUNICIPALITY. An eligible general-law coastal
municipality may adopt the hotel occupancy tax authorized under
Section 351.002 at an election held in the municipality.
Sec. 351.0022. ELECTION PROCEDURE. An election to adopt
the tax authorized under Section 351.002 in an eligible general-law
coastal municipality is called by the adoption of an ordinance by
the governing body of the municipality.
SECTION 3. Section 351.003, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) The rate in an eligible general-law coastal
municipality may not exceed eight percent of the price paid for a
room in a hotel.
SECTION 4. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1075 to read as follows:
Sec. 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 tax at a rate of more than seven
percent of the cost of the room only for:
(1) the maintenance, improvement, or operation of
parks, a trolley or trolley transportation system, or other
facilities as may be considered advisable in connection with such
facilities that serve the purpose of attracting visitors and
tourists to the municipality;
(2) the maintenance, improvement, or operation of a
beautification plan for the town's facilities that serves the
purpose of attracting visitors and tourists to the municipality;
and
(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 the purposes provided by this section.
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.