88R12471 CJD-F
 
  By: Longoria H.B. No. 4565
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the use of the revenue derived from the municipal hotel
  occupancy tax by certain municipalities and to the rate at which
  that tax is imposed by those municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 351.001(7), Tax Code, is amended to read
  as follows:
               (7)  "Eligible central municipality" means:
                     (A)  a municipality with a population of more than
  140,000 but less than 1.5 million that is located in a county with a
  population of one million or more and that has adopted a capital
  improvement plan for the construction or expansion of a convention
  center facility;
                     (B)  a municipality with a population of 250,000
  or more that:
                           (i)  is located wholly or partly on a barrier
  island that borders the Gulf of Mexico;
                           (ii)  is located in a county with a
  population of 300,000 or more; and
                           (iii)  has adopted a capital improvement
  plan to expand an existing convention center facility;
                     (C)  a municipality with a population of 116,000
  or more that:
                           (i)  is located in two counties both of which
  have a population of 660,000 or more; and
                           (ii)  has adopted a capital improvement plan
  for the construction or expansion of a convention center facility;
                     (D)  a municipality with a population of less than
  50,000 that contains a general academic teaching institution that
  is not a component institution of a university system, as those
  terms are defined by Section 61.003, Education Code; [or]
                     (E)  a municipality with a population of 640,000
  or more that:
                           (i)  is located on an international border;
  and
                           (ii)  has adopted a capital improvement plan
  for the construction or expansion of a convention center facility;
  or
                     (F)  a municipality that has a population of at
  least 70,000 but not more than 180,000 and that is located in a
  county that borders the United Mexican States and the Gulf of
  Mexico.
         SECTION 2.  Section 351.003, Tax Code, is amended by adding
  Subsection (g) to read as follows:
         (g)  The rate in a municipality described by Section
  351.001(7)(F) may not exceed nine percent of the price paid for a
  room. The municipality shall allocate for the construction,
  expansion, maintenance, financing, operation, or debt service of a
  convention center or multiuse facility all revenue received by the
  municipality that is derived from the application of the tax at a
  rate of more than seven percent of the price paid for a room in a
  hotel.
         SECTION 3.  Section 351.101, Tax Code, is amended by adding
  Subsection (t) to read as follows:
         (t)  In addition to other authorized uses, a municipality
  described by Section 351.001(7)(F) may use revenue from the
  municipal hotel occupancy tax to pay costs associated with the
  construction, expansion, maintenance, financing, operation, or
  debt service of a convention center or multiuse facility.
         SECTION 4.  This Act takes effect September 1, 2023.