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A BILL TO BE ENTITLED
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AN ACT
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relating to the collection and use of municipal hotel occupancy |
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taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.005, Tax Code, is amended to read as |
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follows: |
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Sec. 351.005. REIMBURSEMENT FOR EXPENSES OF TAX COLLECTION |
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AND USE OF ELECTRONIC TAX ADMINISTRATION SYSTEM. (a) A |
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municipality may permit a person who is required to collect and pay |
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over to the municipality the tax authorized by this chapter to |
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withhold not more than one percent of the amount of the tax |
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collected and required to be reported as reimbursement to the |
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person for the cost of [costs in] collecting the tax [and, if
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applicable, the use of an electronic tax administration system
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described by Section 351.1012]. |
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(b) If a municipality uses revenue derived from the tax |
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authorized by this chapter to create, maintain, operate, or |
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administer an electronic tax administration system as authorized by |
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Section 351.1012, the municipality shall permit a person who is |
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required to collect and pay over to the municipality the tax |
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authorized by this chapter to withhold not more than one percent of |
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the amount of the tax collected and required to be reported as |
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reimbursement to the person for the cost of collecting the tax. |
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(c) The municipality may provide that the reimbursement |
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provided or required by this section be forfeited because of a |
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failure to pay the tax or to file a report as required by the |
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municipality. |
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SECTION 2. Section 351.1012(a), Tax Code, is amended to |
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read as follows: |
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(a) Notwithstanding any other provision of this chapter, a |
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municipality may spend each year not more than the lesser of one |
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percent or $75,000 of the revenue derived from the tax authorized by |
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this chapter during that year for the creation, maintenance, |
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operation, and administration of an electronic tax administration |
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system. A municipality may not use revenue the municipality is |
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authorized to spend under this subsection to conduct an audit. |
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SECTION 3. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 4. This Act takes effect January 1, 2018. |