85R23373 CJC-D
 
  By: Morrison H.B. No. 1494
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the use of municipal hotel occupancy tax revenue by
  certain municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 351, Tax Code, is amended
  by adding Section 351.1075 to read as follows:
         Sec. 351.1075.  ALLOCATION OF REVENUE FOR THE ARTS BY
  CERTAIN MUNICIPALITIES. (a) This section applies only to a
  municipality:
               (1)  a portion of which is designated as a cultural arts
  district; and
               (2)  that is the county seat of a county:
                     (A)  described by Section 352.002(a)(6);
                     (B)  with a population of less than 50,000; and
                     (C)  that includes a state park and a national
  wildlife refuge.
         (b)  Notwithstanding any other provision of this chapter and
  subject to Subsection (c)(1), a municipality to which this section
  applies may use not more than 30 percent of the revenue derived from
  the municipal hotel occupancy tax for the purposes provided by
  Section 351.101(a)(4).
         (c)  A municipality to which this section applies that spends
  more than 15 percent of the hotel occupancy tax revenue collected by
  the municipality in a fiscal year for the purposes provided by
  Section 351.101(a)(4):
               (1)  may not in that fiscal year reduce the percentage
  of hotel occupancy tax revenue that the municipality spends for the
  purposes described by Section 351.101(a)(3) to a percentage that is
  less than the average percentage of hotel occupancy tax revenue
  spent by the municipality for those purposes during the 36-month
  period preceding that fiscal year; and
               (2)  shall determine for that fiscal year:
                     (A)  the increase in the amount of hotel revenue
  that is attributable to that expenditure; and
                     (B)  the total amount of hotel occupancy tax
  revenue spent by the municipality for the purposes provided by
  Section 351.101(a)(4).
         (d)  If the amount of money determined under Subsection
  (c)(2)(A) is less than the amount of money determined under
  Subsection (c)(2)(B), the municipality shall reimburse the
  municipality's hotel occupancy tax revenue fund from the
  municipality's general fund an amount equal to 50 percent of the
  difference between those determined amounts.
         SECTION 2.  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, 2017.