BILL ANALYSIS

C.S.H.B. 3592

By: McReynolds

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Under current law, certain counties may impose a hotel occupancy tax.

C.S.H.B. 3592 authorizes the commissioners court of a county with a population of more than 75,000 that is bordered by the Angelina River and a part of the Rayburn Reservoir to impose a hotel occupancy tax at a rate not to exceed two percent of the price paid for a hotel room.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 3592 amends the Tax Code to authorize the commissioners court of a county with a population of more than 75,000 that is bordered by the Angelina River and a part of Sam Rayburn Reservoir to impose a hotel occupancy tax by the adoption of an order or resolution.  The bill prohibits the tax rate from exceeding two percent of the price paid for a room in a hotel.

EFFECTIVE DATE

On passage, or, if the act does not receive the necessary vote, the act takes effect September 1, 2009.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 3592 differs from the original by authorizing the commissioners court of a certain county with a population of more than 75,000, bordering the Angelina River and Sam Rayburn Reservoir, to impose a hotel occupancy tax, rather than a county with a population of more than 55,000, bordering that river and reservoir, as in the original. The substitute differs from the original by prohibiting a hotel occupancy tax rate in the county in excess of two percent, rather than in excess of three percent as in the original.