H.B. No. 1689
 
 
 
 
AN ACT
  relating to the use of county hotel occupancy tax revenue for an
  electronic tax administration system and the reimbursement of tax
  collection expenses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 352.005, Tax Code, is amended to read as
  follows:
         Sec. 352.005.  REIMBURSEMENT FOR EXPENSES OF TAX COLLECTION
  AND USE OF ELECTRONIC TAX ADMINISTRATION SYSTEM [EXPENSES]. (a) A
  county may permit a person who is required to collect and pay over
  to the county the tax authorized by this chapter to withhold not
  more than one percent of the amount collected and required to be
  reported as reimbursement to the person for the cost of [costs in]
  collecting the tax.
         (b)  If a county uses revenue derived from the tax authorized
  by this chapter to create, maintain, operate, or administer an
  electronic tax administration system as authorized by Section
  352.1016, the county shall permit a person who is required to
  collect and pay over to the county the tax authorized by this
  chapter to withhold not more than one percent of the amount of the
  tax collected and required to be reported as reimbursement to the
  person for the cost of collecting the tax.
         (c)  The county may provide that the reimbursement provided
  or required by this section be forfeited because of a failure to pay
  the tax authorized by this chapter or to file a report related to
  that tax as required by the county.
         SECTION 2.  Subchapter B, Chapter 352, Tax Code, is amended
  by adding Section 352.1016 to read as follows:
         Sec. 352.1016.  ELECTRONIC TAX ADMINISTRATION SYSTEM. (a)  
  Notwithstanding any other provision of this chapter, a county may
  spend each year not more than the lesser of two percent or $75,000
  of the revenue derived from the tax authorized by this chapter
  during that year for the creation, maintenance, operation, and
  administration of an electronic tax administration system to
  administer the tax authorized by this chapter. A county may not use
  revenue the county is authorized to spend under this section to
  conduct an audit.
         (b)  A county may contract with a third party to assist in the
  creation, maintenance, operation, or administration of an
  electronic tax administration system.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1689 was passed by the House on April
  26, 2023, by the following vote:  Yeas 142, Nays 4, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1689 was passed by the Senate on May
  17, 2023, by the following vote:  Yeas 27, Nays 4.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor