BILL ANALYSIS

C.S.H.B. 1234

By: Miller, Doug

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Certain Central Texas counties are authorized by law to collect a county hotel occupancy tax and have been collecting the tax for several years under statutory authority. Revenue from the county hotel occupancy tax has been instrumental in the promotion of tourism in those counties, and tourism continues to be a tremendous boost to local economies.  That statutory authorization, however, was based in part on certain county characteristics, including population, and the new census figures show that the original population parameters no longer apply. Because those counties no longer meet some of the requirements on which their authorization to impose a county hotel occupancy tax was based, they cannot continue collecting the tax without a revision of that statutory authority.  C.S.H.B. 1234 seeks to address the need for appropriate statutory authority for those counties to continue collecting the county hotel occupancy tax. 

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. 1234 amends the Tax Code to authorize the commissioners court of a county through which the Guadalupe River flows and in which the source of the Blanco River is located to impose a county hotel occupancy tax.  The bill exempts a hotel located in a municipality that imposes a municipal hotel occupancy tax applicable to the hotel from the imposition of the county hotel occupancy tax authorized under this provision.

C.S.H.B. 1234 amends the provision authorizing the commissioners court of a county in which the birthplace of a president of the United States is located to impose a county hotel occupancy tax by removing the county population bracket and adding the specification that the Pedernales River flows through the county. 

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 1234 contains a provision not included in the original exempting a hotel located in a municipality that imposes a municipal hotel occupancy tax applicable to the hotel from the imposition of the county hotel occupancy tax to be imposed by the commissioners court of a county through which the Guadalupe River flows and in which the source of the Blanco River is located.