BILL ANALYSIS
Senate Research Center H.B. 1820
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
H.B. 1820 authorizes Orange and Hill counties to collect a hotel occupancy tax. Orange County would be limited to a maximum of a two percent tax on a price paid for a room. Hill County would be limited to using the funds raised through the tax for general promotion and advertising for the county. Orange County would use funds collected under this provision to develop a multipurpose facility to attract livestock shows, rodeos, and other agricultural events.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 352.002(a) and (d), Tax Code, as follows:
(a) Authorizes the commissioners courts of certain counties, including a county that borders or contains a portion of the Neches River, the Sabine River, and Sabine Lake, and a county that borders Whitney Lake, by the adoption of an order or resolution to impose a tax on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room that is in a hotel, costs $2 or more each day, and is ordinarily used for sleeping.
(d) Makes a conforming change.
SECTION 2. Amends Section 352.003, Tax code, by adding Subsection (h), to prohibit the tax rate in a county authorized to impose the tax under Section 352.002(a)(22) from exceeding two percent of the price paid for a room in a hotel.
SECTION 3. Amends Subchapter B, Chapter 352, Tax Code, by adding Section 352.1034, as follows:
Sec. 352.1034. CERTAIN COUNTIES BORDERING WHITNEY LAKE. Authorizes the revenue from a tax imposed under this chapter by a county authorized to impose the tax by Section 352.002(a)(23) to be used only for the purposes described in Section 352.101(a)(3) and only in relation to unincorporated areas of the county.
SECTION 4. Effective date: upon passage or September 1, 2007.