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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of municipal hotel occupancy tax revenue for |
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certain infrastructure projects and public parks. |
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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 351.1011 to read as follows: |
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Sec. 351.1011. USE OF TAX REVENUE FOR CERTAIN |
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INFRASTRUCTURE PROJECTS AND PUBLIC PARKS. (a) In this section, |
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"qualified infrastructure" means: |
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(1) a road, street, highway, bridge, overpass, |
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underpass, or interchange: |
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(A) from which an entrance to a hotel is |
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accessible; or |
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(B) that constitutes, wholly or partly, the |
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shortest route between a hotel and a state highway, interstate |
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highway, public beach, visitor or tourism information center, or |
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convention center facility or complex that is located within five |
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miles of the hotel; |
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(2) a water supply system from which a hotel receives |
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water; |
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(3) a sanitary sewer system into which a hotel |
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discharges wastewater; or |
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(4) a storm drainage system into which runoff from a |
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hotel flows. |
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(b) In addition to the purposes provided by Section |
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351.101(a), a municipality may use revenue from the municipal hotel |
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occupancy tax to promote tourism and the convention and hotel |
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industry by: |
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(1) acquiring, constructing, repairing, remodeling, |
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or expanding qualified infrastructure that is owned by the |
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municipality and that is located not more than one mile from a |
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hotel; and |
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(2) making improvements to a public park that is owned |
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by the municipality and that is located not more than one mile from |
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a hotel. |
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(c) The amount of municipal hotel occupancy tax revenue a |
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municipality may use in a fiscal year for a purpose authorized under |
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this section may not exceed 20 percent of the amount of revenue the |
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municipality collected from that tax during the preceding fiscal |
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year. |
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(d) A municipality that uses municipal hotel occupancy tax |
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revenue under this section: |
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(1) may, notwithstanding the limitation under |
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Subsection (c), reserve not more than 20 percent of the revenue from |
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that tax collected in a fiscal year for use under this section |
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during the succeeding three fiscal years; and |
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(2) may not reduce the percentage of revenue from that |
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tax allocated for a purpose described by Section 351.101(a)(3) to a |
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percentage that is less than the average percentage of the revenue |
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from that tax allocated by the municipality for the purpose |
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described by Section 351.101(a)(3) during the 36-month period |
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preceding the date the municipality begins using revenue for a |
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purpose described by this section. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |