Honorable Dustin Burrows, Chair, House Committee on Ways & Means
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB4203 by Canales (Relating to the use of municipal hotel occupancy tax revenue by certain municipalities.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend Chapter 351 of the Tax Code, regarding municipal hotel occupancy taxes, to amend Section 351.1068(b) and (c) to authorize a municipality that is the county seat of a county that (1) is located on the Texas-Mexico border; (2) has a population of 500,000 or more; and (3) is adjacent to two or more counties each of which has a population of 50,000 or more to use municipal hotel tax revenue to construct, maintain, or expand a sporting-related facility, field or related infrastructure that is located within 2,500 feet of the facility or field provided that it is on property owned by the municipality.
The bill would require the municipality to determine the amount of that tax revenue attributable to the newly constructed, enhanced or upgraded facilities, fields, or related infrastructure for 10 years after the date the original construction, enhancements or upgrades of the first of the facilities or fields is completed. The municipality could not spend over that amount for the construction, enhancement or upgrades from that tax revenue, and the municipality would reimburse from its general fund any expenditure in excess of the amount attributable to the construction, enhancements or upgrades.
The bill would take effect September 1, 2019.
The bill would have no state revenue implications.
Local Government Impact
The bill's provisions would affect the manner in which the City of Edinburg could allocate its municipal hotel tax revenue.
Source Agencies:
304 Comptroller of Public Accounts, 405 Department of Public Safety