82R20137 ALL-F
 
  By: Lyne H.B. No. 2048
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the collection and enforcement of state and local hotel
  occupancy taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter F, Chapter 156, Tax Code, is amended
  by adding Section 156.2513 to read as follows:
         Sec. 156.2513.  ALLOCATION OF REVENUE TO CERTAIN
  MUNICIPALITIES AND COUNTIES. Not later than the last day of the
  month following a calendar quarter, the comptroller shall:
               (1)  compute the amount of revenue, excluding penalties
  and interest, derived from the collection of taxes imposed by this
  chapter that resulted from documentation or other information
  described by Section 351.008 or 352.008; and
               (2)  issue a warrant drawn on the general revenue fund
  in the amount of 20 percent of the revenue computed under
  Subdivision (1) to the municipality or county that provided the
  documentation or other information.
         SECTION 2.  Sections 351.004(a), (a-1), (a-2), and (a-3),
  Tax Code, are amended to read as follows:
         (a)  The [municipal attorney or other attorney acting for
  the] municipality may bring suit against a person who is required to
  collect the tax imposed by this chapter and pay the collections over
  to the municipality, and who has failed to file a tax report or pay
  the tax when due, to collect the tax not paid or to enjoin the person
  from operating a hotel in the municipality until the tax is paid or
  the report filed, as applicable, as provided by the court's
  order.  In addition to the amount of any tax owed under this
  chapter, the person is liable to the municipality for:
               (1)  the municipality's reasonable attorney's fees;
               (2)  the costs of an audit conducted under Subsection
  (a-1)(1), as determined by the municipality using a reasonable
  rate, but only if:
                     (A)  the tax has been delinquent for at least two
  complete municipal fiscal quarters at the time the audit is
  conducted; and
                     (B)  the municipality has not received a
  disbursement from the comptroller as provided by Section 156.2513
  related to the person's concurrent state tax delinquency described
  by Section 351.008; and
               (3)  a penalty equal to 15 percent of the total amount
  of the tax owed if the tax has been delinquent for at least one
  complete municipal fiscal quarter.
         (a-1)  If a person required to file a tax report under this
  chapter does not file the report as required by the municipality,
  the [municipal attorney or other attorney acting for the]
  municipality may determine the amount of tax due under this chapter
  by:
               (1)  conducting an audit of each hotel in relation to
  which the person did not file the report as required by the
  municipality; or
               (2)  using the tax report filed for the appropriate
  reporting period under Section 156.151 in relation to that hotel.
         (a-2)  If the person did not file a tax report under Section
  156.151 for that reporting period in relation to that hotel, the
  [municipal attorney or other attorney acting for the] municipality
  may estimate the amount of tax due by using the tax reports in
  relation to that hotel filed during the previous calendar year
  under this chapter or Section 156.151.  An estimate made under this
  subsection is prima facie evidence of the amount of tax due for that
  period in relation to that hotel.
         (a-3)  The authority to conduct an audit under this section
  is in addition to any other audit authority provided by statute,
  charter, or ordinance. A municipality may directly perform an
  audit authorized by this section or contract with another person to
  perform the audit on an hourly rate or fixed-fee basis.  A
  municipality shall provide at least 30 days' written notice to a
  person who is required to collect the tax imposed by this chapter
  with respect to a hotel before conducting an audit of the hotel
  under this section.
         SECTION 3.  Subchapter A, Chapter 351, Tax Code, is amended
  by adding Section 351.008 to read as follows:
         Sec. 351.008.  CONCURRENT STATE TAX DELINQUENCY. (a) If, as
  a result of an audit conducted under Section 351.004, a
  municipality obtains documentation or other information showing a
  failure to collect or pay when due both the tax imposed by this
  chapter and the tax imposed by Chapter 156 on a person who pays for
  the right to occupy a room or space in a hotel, the municipality
  shall notify and submit the relevant information to the
  comptroller.
         (b)  The comptroller shall review the information submitted
  by a municipality under Subsection (a) and determine whether to
  proceed with collection and enforcement efforts. If the
  information results in the collection of a delinquent tax under
  Chapter 156, the comptroller shall distribute a percentage of the
  amount collected to the municipality as provided by Section
  156.2513 to defray the cost of the municipal audit.
         SECTION 4.  Section 352.004, Tax Code, is amended by adding
  Subsection (e) to read as follows:
         (e)  If a person required to file a tax report under this
  chapter does not file the report as required by the county, the
  county may determine the amount of tax due under this chapter by
  conducting an audit of each hotel in relation to which the person
  did not file the report as required by the county. A county may
  directly perform an audit authorized under this subsection or
  contract with another person to perform the audit on an hourly rate
  or fixed-fee basis.  A county shall provide at least 30 days' 
  written notice to a person who is required to collect the tax
  imposed by this chapter with respect to a hotel before conducting an
  audit of the hotel under this subsection.
         SECTION 5.  Subchapter A, Chapter 352, Tax Code, is amended
  by adding Section 352.008 to read as follows:
         Sec. 352.008.  CONCURRENT STATE TAX DELINQUENCY. (a) If, as
  a result of an audit conducted under Section 352.004, a county
  obtains documentation or other information showing a failure to
  collect or pay when due both the tax imposed by this chapter and the
  tax imposed by Chapter 156 on a person who pays for the right to
  occupy a room or space in a hotel, the county shall notify and
  submit the relevant information to the comptroller.
         (b)  The comptroller shall review the information submitted
  by a county under Subsection (a) and determine whether to proceed
  with collection and enforcement efforts. If the information
  results in the collection of a delinquent tax under Chapter 156, the
  comptroller shall distribute a percentage of the amount collected
  to the county as provided by Section 156.2513 to defray the cost of
  the county audit.
         SECTION 6.  The change in law made by this Act applies only
  to an audit performed by a municipality or county on or after the
  effective date of this Act. An audit performed by a municipality or
  county before the effective date of this Act is governed by the law
  in effect immediately before that date, and that law is continued in
  effect for that purpose.
         SECTION 7.  This Act takes effect September 1, 2011.