This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

                                                                                


By:  Lucio                                                        S.B. No. 1784
	(In the Senate - Filed March 14, 2003; March 24, 2003, read 
first time and referred to Committee on Intergovernmental 
Relations; April 22, 2003, reported adversely, with favorable 
Committee Substitute by the following vote:  Yeas 5, Nays 0; 
April 22, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1784                                   By:  Brimer


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.



* * * * *