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A BILL TO BE ENTITLED
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AN ACT
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relating to the rate of the municipal hotel occupancy tax in certain |
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municipalities and to the use of certain revenue from the tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 351, Tax Code, is amended |
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by adding Section 351.0035 to read as follows: |
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Sec. 351.0035. TAX RATE AND USE IN CERTAIN MUNICIPALITIES. |
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(a) The tax imposed by this chapter in a home-rule municipality |
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that was originally chartered in or after 1938, that is home to a |
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major state university, and that is located in a county bordered by |
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the Brazos and Navasota Rivers, may be imposed at any rate not to |
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exceed 7.75 percent of the price paid for a room in a hotel. |
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(b) The municipality shall allocate for the construction of |
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a convention center in the municipality all revenue received by the |
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municipality that is derived from the application of the tax at a |
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rate of more than seven percent of the price paid for a room in a |
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hotel. |
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(c) The municipality may not increase the rate of the tax to |
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a rate above seven percent before the date the municipality |
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executes a contract for the construction of the convention center. |
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(d) This section expires on the date the governing body of |
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the municipality certifies that all debt relating to the convention |
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center payable from the tax, including interest and any costs |
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relating to the debt, has been paid in full or a deposit has been |
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made and an escrow agreement in relation to the debt has been |
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executed. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |