By: Cook of Colorado H.B. No. 1669
 
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain counties to impose a county
hotel occupancy tax and to the rate of the tax.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 352.002(a), Tax Code, is amended to read
as follows:
       (a)  The commissioners courts of the following counties by
the adoption of an order or resolution may 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:
             (1)  a county that has a population of more than 3.3
million;
             (2)  a county that has a population of 90,000 or more,
borders the United Mexican States, and does not have three or more
cities that each have a population of more than 17,500;
             (3)  a county in which there is no municipality;
             (4)  a county in which there is located an Indian
reservation under the jurisdiction of the United States government;
             (5)  a county that has a population of 30,000 or less,
that has no more than one municipality with a population of less
than 2,500, and that borders two counties located wholly in the
Edwards Aquifer Authority established by Chapter 626, Acts of the
73rd Legislature, Regular Session, 1993;
             (6)  a county that borders the Gulf of Mexico;
             (7)  a county that has a population of less than 5,000,
that borders the United Mexican States, and in which there is
located a major observatory;
             (8)  a county that has a population of 12,000 or less
and borders the Toledo Bend Reservoir;
             (9)  a county that has a population of less than 12,000
and an area of less than 275 square miles;
             (10)  a county that has a population of 30,000 or less
and borders Possum Kingdom Lake;
             (11)  a county that borders the United Mexican States
and has a population of more than 300,000 and less than 600,000;
             (12)  a county that has a population of 35,000 or more
and borders or contains a portion of Lake Fork Reservoir;
             (13)  a county that borders the United Mexican States
and in which there is located a national recreation area;
             (14)  a county that borders the United Mexican States
and in which there is located a national park of more than 400,000
acres;
             (15)  a county that has a population of 28,000 or less,
that has no more than four municipalities, and that is located
wholly in the Edwards Aquifer Authority established by Chapter 626,
Acts of the 73rd Legislature, Regular Session, 1993;
             (16)  a county that has a population of 25,000 or less,
whose territory is less than 750 square miles, and that has two
incorporated municipalities, each with a population of 800 or less,
located on the Frio River;
             (17)  a county that has a population of 34,000 or more
and borders Lake Buchanan;
             (18)  a county that has a population of more than 45,000
and less than 75,000, that borders the United Mexican States, and
that borders or contains a portion of Falcon Lake;
             (19)  a county with a population of 21,000 or less that
borders the Neches River and in which there is located a national
preserve;
             (20)  a county that has a population of 22,500 or less
and that borders or contains a portion of Lake Livingston; [and]
             (21)  a county that has a population of less than 22,000
and in which the birthplace of a president of the United States is
located; and
             (22)  a county that has a population of 16,000 or more
and borders the entire north shore of Lake Somerville.
       SECTION 2.  Subchapter A, Chapter 352, Tax Code, is amended
by adding Section 352.0021 to read as follows:
       Sec. 352.0021.  TAX AUTHORIZED; RATIFICATION ELECTION. (a)
Subject to Subsection (e), the commissioners court of a county that
has a population of 20,000 or less and that is bordered by the
Brazos and Navasota Rivers, by the adoption of an order or
resolution, may 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.
       (b)  The order or resolution imposing the tax must state the
rate of the tax to be imposed. The tax rate may not exceed the rate
authorized by Section 352.003(a).
       (c)  The price of a room in a hotel does not include the cost
of food served by the hotel and the cost of personal services
performed by the hotel for the person except for those services
related to cleaning and readying the room for use or possession.
       (d)  The tax does not apply to a person who is a permanent
resident under Section 156.101.
       (e)  If the commissioners court of a county authorized by
Subsection (a) to impose the tax adopts an order or resolution
imposing the tax and setting the tax rate, the registered voters of
the county at an election held for that purpose must determine
whether to approve the adopted tax rate.
       (f)  The commissioners court shall order that an election be
held in the county on a date that is not less than 30 or more than 90
days after the date on which it adopted the tax rate. At the
election, the ballots shall be prepared to permit voting for or
against the proposition: "Approving the county hotel occupancy tax
at a rate of ____ percent of the price paid for a room in a hotel."
       (g)  If a majority of the votes cast in the election favor the
proposition, the tax is imposed at the rate that was adopted by the
commissioners court. If the proposition is not approved, the tax is
not effective.
       (h)  Section 41.001(a), Election Code, does not apply to an
election under this section.
       SECTION 3.  Subchapter A, Chapter 352, Tax Code, is amended
by adding Section 352.0022 to read as follows:
       Sec.  352.0022.  TAX AUTHORIZED; RATIFICATION ELECTION.  (a)  
Subject to Subsection (e), the commissioners court of a county that
has a population of more than 15,000 and less than 20,000 and is
located on the Trinity and Navasota Rivers, by the adoption of an
order or resolution, may 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.
       (b)  The order or resolution imposing the tax must state the
rate of the tax to be imposed.  The tax rate may not exceed the rate
authorized by Section 352.003(i).
       (c)  The price of a room in a hotel does not include the cost
of food served by the hotel and the cost of personal services
performed by the hotel for the person except for those services
related to cleaning and readying the room for use or possession.
       (d)  The tax does not apply to a person who is a permanent
resident under Section 156.101.
       (e)  If the commissioners court of a county authorized by
Subsection (a) to impose the tax adopts an order or resolution
imposing the tax and setting the tax rate, the registered voters of
the county at an election held for that purpose must determine
whether to approve the adopted tax rate.
       (f)  The commissioners court shall order that an election be
held in the county on a date that is not less than 30 or more than 90
days after the date on which it adopted the tax rate.  At the
election, the ballots shall be prepared to permit voting for or
against the proposition: "Approving the county hotel occupancy tax
at a rate of ___ percent of the price paid for a room in a hotel."
       (g)  If a majority of the votes cast in the election favor the
proposition, the tax is imposed at the rate that was adopted by the
commissioners court.  If the proposition is not approved, the tax is
not effective.
       (h)  Section 41.001(a), Election Code, does not apply to an
election under this section.
       SECTION 4.  Section 352.003, Tax Code, is amended by adding
Subsections (h) and (i) to read as follows:
       (h)  The tax rate in a county authorized to impose the tax
under Section 352.002(a)(22) may not exceed two percent of the
price paid for a room in a hotel.
       (i)  The tax rate in a county authorized to impose the tax
under Section 352.0022 may not exceed two percent of the price paid
for a room in a hotel.
       SECTION 5.  Subchapter A, Chapter 352, Tax Code, is amended
by adding Section 352.0023 to read as follows:
       Sec. 352.0023.  TAX AUTHORIZED; RATIFICATION ELECTION.  (a)  
Subject to Subsection (e), the commissioners court of a county that
has a population of less than 15,000 and that is bordered by the
Trinity and Navasota Rivers, by the adoption of an order or
resolution, may 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.
       (b)  The order or resolution imposing the tax must state the
rate of the tax to be imposed.  The tax rate may not exceed the rate
authorized by Section 352.003(a).
       (c)  The price of a room in a hotel does not include the cost
of food served by the hotel and the cost of personal services
performed by the hotel for the person except for those services
related to cleaning and readying the room for use or possession.
       (d)  The tax does not apply to a person who is a permanent
resident under Section 156.101.
       (e)  If the commissioners court of a county authorized by
Subsection (a) to impose the tax adopts an order or resolution
imposing the tax and setting the tax rate, the registered voters of
the county at an election held for that purpose must determine
whether to approve the adopted tax rate.
       (f)  The commissioners court shall order that an election be
held in the county on a date that is not less than 30 or more than 90
days after the date on which it adopted the tax rate.  At the
election, the ballots shall be prepared to permit voting for or
against the proposition:  "Approving the county hotel occupancy tax
at a rate of ___ percent of the price paid for a room in a hotel."
       (g)  If a majority of the votes cast in the election favor the
proposition, the tax is imposed at the rate that was adopted by the
commissioners court.  If the proposition is not approved, the tax is
not effective.
       (h)  Section 41.001(a), Election Code, does not apply to an
election under this section.
       SECTION 6.  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, 2007.