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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, subject to Sections 351.008(c) |
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and 352.008(c). |
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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 rate |
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[, but only if the tax has been delinquent for at least two complete
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municipal fiscal quarters at the time the audit is conducted]; and |
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(3) a penalty equal to 15 percent of the total amount |
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of the tax owed. |
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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. |
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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. Except as |
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provided by Subsection (c), if the information results in the |
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collection of a delinquent tax under Chapter 156, the comptroller |
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shall distribute a percentage of the amount collected to the |
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municipality as provided by Section 156.2513 to defray the cost of |
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the municipal audit. |
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(c) A municipality may not receive a percentage of the |
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amount collected under Subsection (b) if the information submitted |
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under Subsection (a) was obtained as a result of an audit performed |
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on a contingent fee basis. |
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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. |
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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. Except as provided by |
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Subsection (c), if the information results in the collection of a |
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delinquent tax under Chapter 156, the comptroller shall distribute |
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a percentage of the amount collected to the county as provided by |
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Section 156.2513 to defray the cost of the county audit. |
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(c) A county may not receive a percentage of the amount |
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collected under Subsection (b) if the information submitted under |
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Subsection (a) was obtained as a result of an audit performed on a |
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contingent fee basis. |
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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. |