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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