| TO: | Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | HB3296 by Raney (Relating to the rates of municipal and county hotel occupancy taxes in certain municipalities and counties and the use of certain revenue from those taxes; changing the rates of taxes.), As Introduced |
The bill would amend Chapters 351 and 352 of the Tax Code, regarding municipal and county hotel occupancy taxes.
The bill would allow a county authorized to impose a tax under Section 352.002(g) to increase it's county hotel occupancy to 2.75 percent, if certain conditions specified in the bill are met. Revenue derived from the tax rate increase would be used for the renovation of a stadium located in the county and owned by a major state university under a preferred access facilities contract entered into between the convention and visitors bureau within the county and the major state university.
The bill would decrease the share of revenue from that county's hotel occupancy tax that must be spent on marketing projects that directly promote tourism, hotel, and convention activity from 45 percent to 20 percent.
The bill would repeal Section 351.0035 of the Tax Code, relating to municipal hotel occupancy tax rate and use in a home-rule municipality that was originally chartered in or after 1938, that is home to a major state university, and that is located in a county bordered by the Brazos and Navasota Rivers.
The bill would take effect immediately upon receiving two-thirds majority vote in each house. Otherwise, the bill would take effect September 1, 2013.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | UP, KK, SD, AG
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