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79R1884 CBH-F

By:  Brimer                                                       S.B. No. 174



A BILL TO BE ENTITLED

AN ACT

relating to the collection of municipal hotel occupancy taxes.                
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 351.004, Tax Code, is amended by 
amending Subsection (a) and adding Subsections (a-1) and (a-2) to 
read as follows:
	(a)  The municipal attorney or other attorney acting for the 
municipality may bring suit against a person who is required to 
collect the tax imposed by this chapter and pay the collections over 
to the municipality and who has failed to file a tax report or pay 
the tax when due to collect the tax not paid or to enjoin the person 
from operating a hotel in the municipality until the tax is paid or 
the report filed, as applicable, as provided by the court's order.  
In addition to the amount of any tax owed under this chapter, the 
person is liable to the municipality for:
		(1)  the municipality's reasonable attorney's fees;             
		(2)  the costs of an audit conducted under Subsection 
(a-1)(1), as determined by the municipality using a reasonable 
rate; and
		(3) a penalty equal to 15 percent of the total amount of 
the tax owed.
	(a-1)  If a person required to file a tax report under this 
chapter does not file the report as required by the municipality, 
the municipal attorney or other attorney acting for the 
municipality may determine the amount of tax due under this chapter 
by:
		(1)  conducting an audit of each hotel in relation to 
which the person did not file the report as required by the 
municipality; or
		(2)  using the tax report filed for the appropriate 
reporting period under Section 156.151 in relation to that hotel.
	(a-2)  If the person did not file a tax report under Section 
156.151 for that reporting period in relation to that hotel, the 
municipal attorney or other attorney acting for the municipality 
may estimate the amount of tax due by using the tax reports in 
relation to that hotel filed during the previous calendar year 
under this chapter or Section 156.151.  An estimate made under this 
subsection is prima facie evidence of the amount of tax due for that 
period in relation to that hotel.
	SECTION 2.  This Act applies only to taxes imposed on or 
after the effective date of this Act.  Taxes imposed before that 
date are governed by the law in effect on the date the taxes were 
imposed, and that law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.