87R14053 SMT-D
 
  By: Morales of Maverick H.B. No. 2172
 
  Substitute the following for H.B. No. 2172:
 
  By:  Martinez Fischer C.S.H.B. No. 2172
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the hotel occupancy tax imposed by certain counties and
  the use of revenue from that tax; reducing the maximum rate of that
  tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 352.002(d), Tax Code, is amended to read
  as follows:
         (d)  The tax imposed by a county authorized by Subsection
  (a)(6) [(a)(4), (6)], (8), (9), (10), (11), (14), (15), (17), (19),
  (20), (21), (23), or (29) to impose the tax does not apply to a hotel
  located in a municipality that imposes a tax under Chapter 351
  applicable to the hotel. This subsection does not apply to:
               (1)  a county authorized by Subsection (a)(6) to impose
  the tax that:
                     (A)  has a population of less than 40,000 and
  adjoins the most populous county in this state; or
                     (B)  has a population of more than 200,000 and
  borders the Neches River; or
               (2)  a county authorized by Subsection (a)(9) to impose
  the tax that has a population of more than 9,000.
         SECTION 2.  Section 352.003, Tax Code, is amended by adding
  Subsection (y) to read as follows:
         (y)  The tax rate in a county authorized to impose the tax
  under Section 352.002(a)(4) may not exceed two percent of the price
  paid for a room in a hotel.
         SECTION 3.  Subchapter B, Chapter 352, Tax Code, is amended
  by adding Section 352.114 to read as follows:
         Sec. 352.114.  USE OF REVENUE:  CERTAIN COUNTIES CONTAINING
  AN INDIAN RESERVATION. (a)  In addition to the purposes authorized
  by this chapter, the revenue from a tax imposed under this chapter
  by a county authorized to impose the tax under Section
  352.002(a)(4) may be used to make repairs and improvements to the
  county airport or to provide reimbursement for repairs and
  improvements to the airport.
         (b)  A county to which this section applies may not use
  revenue from a tax imposed under this chapter for a purpose
  described by Subsection (a) in a total amount that would exceed the
  amount of hotel revenue in the county that is likely to be
  reasonably attributable to guests traveling through the airport
  during the 15-year period beginning on the date the county first
  uses the tax revenue for that purpose.
         (c)  A county to which this section applies may not use
  revenue from a tax imposed under this chapter for a purpose
  described by Subsection (a) after the 10th anniversary of the date
  the county first uses the revenue for that purpose.
         SECTION 4.  This Act takes effect September 1, 2021.