By: Rios Ybarra (Senate Sponsor - Lucio) H.B. No. 1324

(In the Senate - Received from the House May 1, 2009; May 5, 2009, read first time and referred to Committee on International Relations and Trade; May 14, 2009, reported favorably by the following vote: Yeas 7, Nays 0; May 14, 2009, sent to printer.)

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 shall use at least the amount of revenue derived from the application of the tax at a rate of seven percent of the cost of a room for the purposes authorized under Sections 351.101(a)(1) and (3).

(e) An eligible barrier island coastal municipality that imposes the tax at a rate equal to or greater than 7-1/2 percent of the price paid for a room 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 response 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.

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