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A BILL TO BE ENTITLED
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AN ACT
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relating to use and allocation of municipal hotel occupancy tax |
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revenues for certain 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 (i) to read as follows: |
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(i) In addition to the purposes provided by Subsection (a), |
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a municipality that has a population of at least 75,000 but not more |
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than 95,000 and that is located in a county that has a population of |
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more than 160,000 but less than 200,000 may use revenue from the |
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municipal hotel tax to promote tourism and the convention and hotel |
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industry by constructing, operating, or expanding a sporting |
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related facility or sports field owned by the municipality, if the |
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majority of the events at the facility or fields are directly |
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related to a sporting event in which the majority of participants |
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are tourists who substantially increase economic activity at hotels |
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in the municipality. |
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SECTION 2. Subchapter B, Chapter 351, Tax Code, is amended |
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by adding Section 351.1078 to read as follows: |
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Sec. 351.1078. ALLOCATION OF REVENUE: CERTAIN |
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MUNICIPALITIES. (a) A municipality that spends municipal hotel |
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occupancy tax revenue as authorized by Section |
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351.101(a)(7)(B)(ii) or (i): |
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(1) may not use municipal hotel occupancy tax revenue |
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for the acquisition of land for the sports facility or sports fields |
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described by those provisions; |
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(2) shall annually determine and prepare a report on |
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the events held at the facility or fields, the number of hotel room |
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nights attributable to events held at the facility or fields, and |
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the amount of hotel revenue and municipal tax revenue attributable |
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to the sports events and tournaments held at the facilities or |
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fields for five years after the date the construction, operation, |
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expansion, or upgrade expenditures are completed; and |
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(3) may only spend hotel occupancy tax revenue for |
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operational expenses of the facility or fields if the costs are |
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directly related to a sporting event in which the majority of |
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participants are tourists who substantially increase economic |
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activity at hotels in or near the municipality. |
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(b) The municipality shall reimburse to the municipality's |
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hotel occupancy tax revenue fund from the municipality's general |
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fund any expenditure in excess of the amount of area hotel revenue |
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attributable to the construction, operation, expansion, and |
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upgrade of the sports facility or sports fields described by |
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Sections 351.101(a)(7)(B)(ii) and (i). |
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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. |