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A BILL TO BE ENTITLED
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AN ACT
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relating to the collection and enforcement of state and local hotel |
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occupancy taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 156, Tax Code, is amended |
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by adding Section 156.2513 to read as follows: |
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Sec. 156.2513. ALLOCATION OF REVENUE TO CERTAIN |
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MUNICIPALITIES AND COUNTIES. Not later than the last day of the |
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month following a calendar quarter, the comptroller shall: |
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(1) compute the amount of revenue, excluding penalties |
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and interest, derived from the collection of taxes imposed by this |
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chapter that resulted from documentation or other information |
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described by Section 351.008 or 352.008; and |
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(2) issue a warrant drawn on the general revenue fund |
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in the amount of 20 percent of the revenue computed under |
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Subdivision (1) to the municipality or county that provided the |
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documentation or other information. |
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SECTION 2. Sections 351.004(a), (a-1), (a-2), and (a-3), |
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Tax Code, are amended to read as follows: |
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(a) The [municipal attorney or other attorney acting for
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the] municipality may bring suit against a person who is required to |
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collect the tax imposed by this chapter and pay the collections over |
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to the municipality, and who has failed to file a tax report or pay |
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the tax when due, to collect the tax not paid or to enjoin the person |
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from operating a hotel in the municipality until the tax is paid or |
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the report filed, as applicable, as provided by the court's |
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order. In addition to the amount of any tax owed under this |
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chapter, the person is liable to the municipality for: |
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(1) the municipality's reasonable attorney's fees; |
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(2) the costs of an audit conducted under Subsection |
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(a-1)(1), as determined by the municipality using a reasonable |
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rate, but only if: |
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(A) the tax has been delinquent for at least two |
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complete municipal fiscal quarters at the time the audit is |
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conducted; and |
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(B) the municipality has not received a |
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disbursement from the comptroller as provided by Section 156.2513 |
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related to the person's concurrent state tax delinquency described |
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by Section 351.008; and |
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(3) a penalty equal to 15 percent of the total amount |
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of the tax owed if the tax has been delinquent for at least one |
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complete municipal fiscal quarter. |
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(a-1) If a person required to file a tax report under this |
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chapter does not file the report as required by the municipality, |
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the [municipal attorney or other attorney acting for the] |
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municipality may determine the amount of tax due under this chapter |
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by: |
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(1) conducting an audit of each hotel in relation to |
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which the person did not file the report as required by the |
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municipality; or |
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(2) using the tax report filed for the appropriate |
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reporting period under Section 156.151 in relation to that hotel. |
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(a-2) If the person did not file a tax report under Section |
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156.151 for that reporting period in relation to that hotel, the |
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[municipal attorney or other attorney acting for the] municipality |
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may estimate the amount of tax due by using the tax reports in |
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relation to that hotel filed during the previous calendar year |
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under this chapter or Section 156.151. An estimate made under this |
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subsection is prima facie evidence of the amount of tax due for that |
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period in relation to that hotel. |
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(a-3) The authority to conduct an audit under this section |
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is in addition to any other audit authority provided by statute, |
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charter, or ordinance. A municipality may directly perform an |
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audit authorized by this section or contract with another person to |
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perform the audit on an hourly rate or fixed-fee basis. A |
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municipality shall provide at least 30 days' written notice to a |
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person who is required to collect the tax imposed by this chapter |
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with respect to a hotel before conducting an audit of the hotel |
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under this section. |
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SECTION 3. Subchapter A, Chapter 351, Tax Code, is amended |
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by adding Section 351.008 to read as follows: |
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Sec. 351.008. CONCURRENT STATE TAX DELINQUENCY. (a) If, as |
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a result of an audit conducted under Section 351.004, a |
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municipality obtains documentation or other information showing a |
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failure to collect or pay when due both the tax imposed by this |
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chapter and the tax imposed by Chapter 156 on a person who pays for |
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the right to occupy a room or space in a hotel, the municipality |
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shall notify and submit the relevant information to the |
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comptroller. |
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(b) The comptroller shall review the information submitted |
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by a municipality under Subsection (a) and determine whether to |
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proceed with collection and enforcement efforts. If the |
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information results in the collection of a delinquent tax under |
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Chapter 156, the comptroller shall distribute a percentage of the |
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amount collected to the municipality as provided by Section |
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156.2513 to defray the cost of the municipal audit. |
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SECTION 4. Section 352.004, Tax Code, is amended by adding |
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Subsection (e) to read as follows: |
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(e) If a person required to file a tax report under this |
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chapter does not file the report as required by the county, the |
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county may determine the amount of tax due under this chapter by |
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conducting an audit of each hotel in relation to which the person |
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did not file the report as required by the county. A county may |
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directly perform an audit authorized under this subsection or |
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contract with another person to perform the audit on an hourly rate |
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or fixed-fee basis. A county shall provide at least 30 days' |
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written notice to a person who is required to collect the tax |
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imposed by this chapter with respect to a hotel before conducting an |
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audit of the hotel under this subsection. |
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SECTION 5. Subchapter A, Chapter 352, Tax Code, is amended |
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by adding Section 352.008 to read as follows: |
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Sec. 352.008. CONCURRENT STATE TAX DELINQUENCY. (a) If, as |
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a result of an audit conducted under Section 352.004, a county |
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obtains documentation or other information showing a failure to |
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collect or pay when due both the tax imposed by this chapter and the |
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tax imposed by Chapter 156 on a person who pays for the right to |
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occupy a room or space in a hotel, the county shall notify and |
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submit the relevant information to the comptroller. |
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(b) The comptroller shall review the information submitted |
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by a county under Subsection (a) and determine whether to proceed |
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with collection and enforcement efforts. If the information |
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results in the collection of a delinquent tax under Chapter 156, the |
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comptroller shall distribute a percentage of the amount collected |
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to the county as provided by Section 156.2513 to defray the cost of |
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the county audit. |
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SECTION 6. The change in law made by this Act applies only |
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to an audit performed by a municipality or county on or after the |
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effective date of this Act. An audit performed by a municipality or |
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county before the effective date of this Act is governed by the law |
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in effect immediately before that date, and that law is continued in |
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effect for that purpose. |
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SECTION 7. This Act takes effect September 1, 2011. |