By: Paul (Senate Sponsor - Taylor of Galveston) H.B. No. 1585
         (In the Senate - Received from the House May 18, 2015;
  May 18, 2015, read first time and referred to Committee on Business
  and Commerce; May 22, 2015, reported favorably by the following
  vote:  Yeas 7, Nays 0; May 22, 2015, sent to printer.)
Click here to see the committee vote
 
 
 
  COMMITTEE VOTE
 
 
         YeaNayAbsentPNV
         EltifeX
         CreightonX
         EllisX
         HuffinesX
         SchwertnerX
         SeligerX
         TaylorofGalvestonX
         WatsonX
         WhitmireX
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the use of hotel occupancy tax revenue in certain
  municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 351.101, Tax Code, is amended by adding
  Subsection (j) to read as follows:
         (j)  In addition to the purposes provided by Subsection (a),
  a municipality that has a population of not more than 5,000 and at
  least part of which is located less than one-eighth of one mile from
  a space center operated by an agency of the federal government may
  use revenue from the municipal hotel occupancy tax for expenses,
  including promotion expenses, directly related to a sporting event
  in which the majority of participants are tourists who
  substantially increase economic activity at hotels and motels
  within the municipality or its vicinity.
         SECTION 2.  Subchapter B, Chapter 351, Tax Code, is amended
  by adding Section 351.1071 to read as follows:
         Sec. 351.1071.  ALLOCATION OF REVENUE: CERTAIN
  MUNICIPALITIES. (a)  This section applies only to a municipality:
               (1)  that has a population of not more than 5,000; and
               (2)  at least part of which is located less than
  one-eighth of one mile from a space center operated by an agency of
  the federal government.
         (b)  In this section, "authorized facility" means a civic
  center, marina, meeting room, hotel, parking facility, or visitor
  center, including signage related to the facility, that:
               (1)  is owned by the municipality or a nonprofit
  corporation acting on behalf of the municipality;
               (2)  is located not more than 1,000 feet from a hotel
  property in the municipality; and
               (3)  substantially enhances hotel activity and
  encourages tourism within the municipality.
         (c)  Subject to Subsection (d) and notwithstanding any other
  provision of this chapter, a municipality to which this section
  applies may use the amount of revenue derived from the application
  of the tax under this chapter at a rate of three percent of the price
  paid for a room in a hotel to:
               (1)  establish, acquire, purchase, construct, improve,
  maintain, or operate an authorized facility; and
               (2)  pay bonds issued for a purpose described by
  Subdivision (1).
         (d)  A municipality may not use municipal hotel occupancy tax
  revenue on an authorized facility in a total amount that would
  exceed the amount of that revenue attributable to events at that
  facility for the 15-year period following the completion of
  construction.
         (e)  A municipality that uses municipal hotel occupancy tax
  revenue for a purpose authorized by this section shall publish
  annually for the 15-year period following the completion of
  construction at the authorized facility for which the revenue was
  used a report on the Internet website of the municipality that
  lists:
               (1)  for the preceding year, the events held at the
  authorized facility with respect to which the tax revenue was used
  and the number of hotel room nights attributable to those events;
  and
               (2)  the amount of hotel revenue and municipal hotel
  occupancy tax revenue attributable to events held at the authorized
  facility in that year.
         (f)  If a municipality uses municipal hotel occupancy tax
  revenue to establish, acquire, purchase, construct, or improve an
  authorized facility, the municipality shall, on the 5th, 10th, and
  15th anniversaries of the completion of construction at the
  facility:
               (1)  calculate:
                     (A)  the sum of:
                           (i)  municipal hotel occupancy tax revenue
  used to maintain or operate the facility in the past five years;
                           (ii)  one-third of the amount of municipal
  hotel occupancy tax revenue used to establish, acquire, purchase,
  construct, or improve the authorized facility; and
                           (iii)  any credits carried over from a
  previous five-year period, as authorized by Subsection (g); and
                     (B)  municipal hotel occupancy tax revenue
  directly attributable to events held at the authorized facility in
  the past five years; and
               (2)  if the amount calculated under Subdivision (1)(A)
  exceeds the amount calculated under Subdivision (1)(B), reimburse
  the municipality's hotel occupancy tax revenue fund from the
  municipality's general fund in the amount of the difference.
         (g)  If, for a given five-year period, the amount calculated
  under Subsection (f)(1)(B) exceeds the amount calculated under
  Subsection (f)(1)(A), the municipality may carry forward the
  difference to be used as a credit in a subsequent five-year period.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.
 
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