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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 by |
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certain municipalities. |
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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 351.10713 to read as follows: |
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Sec. 351.10713. ALLOCATION OF REVENUE FOR CONSTRUCTION, |
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EXPANSION, AND OPERATION OF RECREATIONAL OR SPORTS FACILITIES AND |
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FIELDS BY CERTAIN MUNICIPALITIES. (a) This section applies only |
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to a municipality that is the county seat of a county: |
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(1) that borders the Gulf of Mexico; and |
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(2) through which the Colorado River flows. |
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(b) Notwithstanding any other provision of this chapter and |
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subject to Subsections (c), (d), and (e), a municipality to which |
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this section applies may, for the purpose of promoting tourism and |
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the convention and hotel industry, use revenue derived from the |
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municipal hotel occupancy tax to: |
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(1) construct and expand recreational or sports |
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facilities and fields owned by the municipality or another |
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governmental entity; and |
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(2) operate recreational or sports facilities and |
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fields owned by the municipality or another governmental entity. |
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(c) A municipality to which this section applies that uses |
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municipal hotel occupancy tax revenue for a purpose described by |
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Subsection (b)(1): |
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(1) shall determine the amount of municipal hotel |
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occupancy tax revenue generated for the municipality by hotel |
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activity attributable to the events held at the recreational or |
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sports facilities and fields for five years after the date the |
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construction or expansion of the facilities and fields is complete; |
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(2) may not spend municipal hotel occupancy tax |
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revenue for a purpose described by Subsection (b)(1) in a total |
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amount that exceeds the amount of area hotel revenue attributable |
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to the construction or expansion of the facilities and fields; and |
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(3) shall reimburse from the municipality's general |
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fund any expenditure in excess of the amount of area hotel revenue |
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attributable to the construction or expansion of the facilities and |
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fields to the municipality's hotel occupancy tax revenue fund. |
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(d) A municipality to which this section applies may not use |
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municipal hotel occupancy tax revenue for a purpose described by |
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Subsection (b)(2) in an amount each year that exceeds the amount of |
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area hotel revenue in that year attributable to events held at the |
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recreational or sports facilities and fields. |
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(e) If a municipality to which this section applies uses |
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revenue derived from the municipal hotel occupancy tax for a |
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purpose described by Subsection (b), the municipality may not |
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reduce the percentage of revenue from that tax allocated for a |
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purpose described by Section 351.101(a)(3) to a percentage that is |
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less than the average percentage of that revenue allocated by the |
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municipality for that purpose during the 36-month period preceding |
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the date the municipality begins using the revenue for a purpose |
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described by Subsection (b). |
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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, 2023. |