Honorable Bob Deuell, Chair, Senate Committee on Economic Development
Ursula Parks, Director, Legislative Budget Board
HB3043 by Oliveira (Relating to increasing the maximum rate at which certain municipalities may impose a hotel occupancy tax and to the use of revenue from that tax.), As Engrossed
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City of South Padre Island
The bill would amend Chapter 351 of the Tax Code, regarding municipal hotel occupancy taxes.
The bill would allow a municipality authorized to impose a municipal hotel occupancy tax under Section 351.003(d) to set the tax rate at up to 9 percent of the price paid for a room, a change from the current maximum of 8.5 percent rate in current law. The bill also would increase the amount of revenue derived from the imposition of this tax, from the current rate of 0.5 percent to a rate of one percent, that must be used by the municipality for erosion response projects.
The bill would take effect immediately upon receiving two-thirds majority vote in each house. Otherwise, the bill would take effect September 1, 2013.
304 Comptroller of Public Accounts
UP, RB, KK, SD, AG