BILL ANALYSIS

Senate Research Center	C.S.S.B. 1809
	By: Sparks
	Natural Resources & Economic Development
	4/13/2023
	Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Many counties across the state levy and collect hotel occupancy taxes. Currently, Armstrong County is not authorized to do so. Accordingly, S.B. 1809 would authorize the commissioners court of a county with a population of less than 3,000, that does not border another state and that is adjacent to a county that contains a portion of Lake Meredith and has a population of more than 110,000 to levy and collect a county hotel occupancy tax.

S.B. 1809 amends current law relating to the imposition of the county hotel occupancy tax in certain counties.

(Original Author's/Sponsor's Statement of Intent)

Committee Substitute:

The original bill would give the commissioners court general authority to impose a hotel occupancy tax. 

The substitute authorizes Armstrong County to impose a county hotel occupancy tax with a maximum county tax rate of seven percent for those areas of the county that are not subject to a municipal hotel occupancy tax.  For areas of the county that are subject to a municipal hotel occupancy tax, the substitute authorizes Armstrong County to impose a county hotel occupancy tax with a maximum county tax rate of two percent. 

C.S.S.B. 1809 amends current law relating to the authority of certain counties to impose a hotel occupancy tax and the applicability and rates of that tax in certain counties.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 352.002, Tax Code, by adding Subsection (v), as follows:

(v) Authorizes the commissioners court of a county with a population of less than 3,000, that does not border another state, and that is adjacent to a county that contains a portion of Lake Meredith and has a population of more than 110,000 to impose a tax as provided by Subsection (a) (relating to authorizing the commissioners court of certain counties to impose a tax on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room that is in a hotel, costs $2 or more each day, and is ordinarily used for sleeping).

SECTION 2. Amends Section 352.003, Tax Code, by amending Subsection (bb), as follows:

(bb) Prohibits the tax rate in a county authorized to impose the tax under Subsection 352.002(v) from exceeding seven percent of the price paid for a room in a hotel, except that the tax rate is prohibited from exceeding two percent of the price paid for a room in a hotel if the hotel is located in:

(1) a municipality that imposes a tax under Chapter 351 (Municipal Hotel Occupancy Taxes ) applicable to the hotel; or

(2) the extraterritorial jurisdiction of a municipality that imposes a tax under Section 351.0025 (Extraterritorial Jurisdiction) applicable to the hotel.

SECTION 3. Effective date: upon passage or September 1, 2023.