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A BILL TO BE ENTITLED
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AN ACT
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relating to the expenditure of municipal hotel occupancy tax |
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revenue allocated by certain municipalities for certain purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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by adding Section 351.111 to read as follows: |
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Sec. 351.111. EXPENDITURE OF ALLOCATED REVENUE: ELIGIBLE |
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COASTAL MUNICIPALITY AND CERTAIN OTHER MUNICIPALITIES. (a) This |
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section applies only to: |
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(1) an eligible coastal municipality; and |
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(2) a municipality with a population of more than |
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750,000 and less than one million. |
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(b) If a municipality allocates a percentage of the hotel |
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occupancy tax revenue the municipality collects for the purposes |
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provided by Section 351.101(a)(5) for a site or museum not |
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primarily visited by tourists, the municipality may not spend any |
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portion of the allocated hotel occupancy tax revenue for that site |
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or museum in a fiscal year in an amount that exceeds the amount of |
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hotel occupancy tax revenue the municipality proposes to spend for |
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the site or museum for that fiscal year multiplied by the |
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municipality's good faith estimate of the percentage that the |
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annual number of tourists visiting the site or museum bears to the |
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total annual number of visitors to the site or museum. |
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(c) A municipality shall require a site or museum to report |
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the annual numbers of tourists visiting the site or museum and total |
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visitors to the site or museum for the purposes of making the good |
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faith estimate described by Subsection (b). |
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(d) To the extent that hotel occupancy tax revenue collected |
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and allocated for a purpose described by Section 351.101(a)(5) may |
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not be spent because of the limitation provided by Subsection (b), |
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the municipality may allocate that revenue in the following fiscal |
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year in the manner provided by this chapter. |
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SECTION 2. This Act takes effect September 1, 2019. |