BILL ANALYSIS

S.B. 1041

By: Zaffirini

Agriculture & Livestock

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current law, certain counties such as Bee County are not authorized to impose a county hotel occupancy tax.  Interested parties contend that it would be beneficial for such a county to use funds from a hotel occupancy tax for the purpose of maintaining, operating, and improving a convention center and promoting tourism. S.B. 1041 seeks to provide this benefit by establishing provisions relating to authorizing certain counties to impose a 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

S.B. 1041 amends the Tax Code to authorize the commissioners court of a county with a population of less than 50,000 through which the Aransas River flows and that has a municipality with a population of more than 10,000 to impose a county hotel occupancy tax and restricts the authorized use of revenue from such a tax to the operation, maintenance, and improvement of a convention center in the county and to the advertisement and conduction of solicitations and promotional programs to attract tourists and convention delegates and registrants to the county. The bill caps the tax rate of such tax in the county at two percent of the price paid for a room in a hotel if the hotel is located in a municipality that imposes a municipal hotel occupancy tax applicable to that hotel.  

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2013.