| TO: | Honorable Tom Craddick, Speaker of the House, House of Representatives |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1459 by Eiland (Relating to hotel taxes in certain coastal municipalities with a population of less than 5,000.), As Passed 2nd House |
The bill would amend Section 351.001(3) of the Tax Code to include certain municipalities with a population of less than 5,000.
The bill would amend Section 351.1055 of the Tax Code to define "beach security" as beach patrol, lifeguard services, marine water safety, and park law enforcement. The bill would allow an eligible coastal municipality with a population of less than 5,000 to use all or any portion of the municipal hotel tax revenue it collects to clean and maintain beaches, to provide beach security within the municipality, and to pay principal or interest on bonds or notes for any purpose allowed by Section 351.105 of the Tax Code.
The bill would amend Section 351.003 (c) of the Tax Code to allow a municipality with a population of 5,000 or less to impose a municipal hotel tax rate not to exceed nine percent of the price paid for a room.
The bill would add the municipality of Jamaica Beach to the list of municipalities.
Currently, the municipality of Jamaica Beach imposes a municipal hotel tax rate of seven percent. Under this bill, it would be allowed to raise the rate to nine percent. It is not known if the municipality of Jamaica Beach would raise the municipal hotel occupancy tax rate to nine percent; however, were Jamaica Beach to do so, the additional revenue would be negligible.
The bill would take effect September 1, 2003.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JK, DLBa, WP, SD
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