81R8009 JE-F
 
  By: Rios Ybarra H.B. No. 1324
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the municipal hotel occupancy tax imposed in certain
  municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 351.001, Tax Code, is amended by adding
  Subdivision (11) to read as follows:
               (11)  "Eligible barrier island coastal municipality"
  means a municipality:
                     (A)  that borders on the Gulf of Mexico;
                     (B)  that is located wholly on a barrier island;
  and
                     (C)  the boundaries of which are within 30 miles
  of the United Mexican States.
         SECTION 2.  Section 351.003, Tax Code, is amended by adding
  Subsection (d) to read as follows:
         (d)  The rate in an eligible barrier island coastal
  municipality may not exceed 8-1/2 percent of the price paid for a
  room.
         SECTION 3.  Section 351.1055(a), Tax Code, is amended by
  adding Subdivision (4) to read as follows:
               (4)  "Erosion response project" has the meaning
  assigned by Section 33.601, Natural Resources Code.
         SECTION 4.  Section 351.1055, Tax Code, is amended by adding
  Subsections (d) and (e) to read as follows:
         (d)  Notwithstanding any other provision of this chapter and
  except as provided by Subsection (e), an eligible barrier island
  coastal municipality may use all or any portion of the revenue
  derived from the municipal hotel occupancy tax:
               (1)  to clean and maintain the beaches in the
  municipality;
               (2)  to provide beach security within the municipality;
               (3)  for any of the purposes permitted or allowed by
  Section 1504.001, Government Code;
               (4)  for any purpose allowed by Section 351.105,
  without regard to the rate of the tax in the municipality;
               (5)  for any erosion response project;
               (6)  for beautifying or improving the safety of and
  access to the portion of State Highway 100 that is within the
  boundaries of the municipality; or
               (7)  to pay the principal of or interest on bonds or
  notes issued for any of these purposes.
         (e)  An eligible barrier island coastal municipality shall
  use at least the amount of revenue derived from the application of
  the tax at a rate of one-half of one percent of the cost of a room
  for erosion control projects.
         SECTION 5.  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, 2009.