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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of hotel occupancy tax revenue in certain |
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municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.101, Tax Code, is amended by adding |
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Subsection (j) to read as follows: |
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(j) In addition to the purposes provided by Subsection (a), |
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a municipality that has a population of not more than 5,000 and at |
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least part of which is located less than one-eighth of one mile from |
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a space center operated by an agency of the federal government may |
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use revenue from the municipal hotel occupancy tax for expenses, |
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including promotion expenses, directly related to a sporting event |
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in which the majority of participants are tourists who |
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substantially increase economic activity at hotels and motels |
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within the municipality or its vicinity. |
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SECTION 2. Subchapter B, Chapter 351, Tax Code, is amended |
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by adding Section 351.1071 to read as follows: |
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Sec. 351.1071. ALLOCATION OF REVENUE: CERTAIN |
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MUNICIPALITIES. (a) This section applies only to a municipality: |
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(1) that has a population of not more than 5,000; and |
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(2) at least part of which is located less than |
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one-eighth of one mile from a space center operated by an agency of |
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the federal government. |
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(b) In this section, "authorized facility" means a civic |
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center, marina, meeting room, hotel, parking facility, or visitor |
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center, including signage related to the facility, that: |
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(1) is owned by the municipality or a nonprofit |
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corporation acting on behalf of the municipality; |
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(2) is located not more than 1,000 feet from a hotel |
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property in the municipality; and |
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(3) substantially enhances hotel activity and |
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encourages tourism within the municipality. |
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(c) Subject to Subsection (d) and notwithstanding any other |
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provision of this chapter, a municipality to which this section |
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applies may use the amount of revenue derived from the application |
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of the tax under this chapter at a rate of three percent of the price |
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paid for a room in a hotel to: |
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(1) establish, acquire, purchase, construct, improve, |
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maintain, or operate an authorized facility; and |
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(2) pay bonds issued for a purpose described by |
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Subdivision (1). |
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(d) A municipality may not use municipal hotel occupancy tax |
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revenue on an authorized facility in a total amount that would |
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exceed the amount of that revenue attributable to events at that |
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facility for the 15-year period following the completion of |
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construction. |
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(e) A municipality that uses municipal hotel occupancy tax |
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revenue for a purpose authorized by this section shall publish |
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annually for the 15-year period following the completion of |
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construction at the authorized facility for which the revenue was |
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used a report on the Internet website of the municipality that |
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lists: |
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(1) for the preceding year, the events held at the |
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authorized facility with respect to which the tax revenue was used |
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and the number of hotel room nights attributable to those events; |
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and |
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(2) the amount of hotel revenue and municipal hotel |
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occupancy tax revenue attributable to events held at the authorized |
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facility in that year. |
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(f) If a municipality uses municipal hotel occupancy tax |
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revenue to establish, acquire, purchase, construct, or improve an |
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authorized facility, the municipality shall, on the 5th, 10th, and |
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15th anniversaries of the completion of construction at the |
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facility: |
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(1) calculate: |
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(A) the sum of: |
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(i) municipal hotel occupancy tax revenue |
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used to maintain or operate the facility in the past five years; |
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(ii) one-third of the amount of municipal |
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hotel occupancy tax revenue used to establish, acquire, purchase, |
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construct, or improve the authorized facility; and |
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(iii) any credits carried over from a |
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previous five-year period, as authorized by Subsection (g); and |
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(B) municipal hotel occupancy tax revenue |
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directly attributable to events held at the authorized facility in |
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the past five years; and |
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(2) if the amount calculated under Subdivision (1)(A) |
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exceeds the amount calculated under Subdivision (1)(B), reimburse |
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the municipality's hotel occupancy tax revenue fund from the |
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municipality's general fund in the amount of the difference. |
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(g) If, for a given five-year period, the amount calculated |
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under Subsection (f)(1)(B) exceeds the amount calculated under |
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Subsection (f)(1)(A), the municipality may carry forward the |
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difference to be used as a credit in a subsequent five-year period. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |