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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of the revenue derived from the municipal hotel |
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occupancy tax by certain municipalities and to the rate at which |
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that tax is imposed by those municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.001(7), Tax Code, is amended to read |
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as follows: |
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(7) "Eligible central municipality" means: |
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(A) a municipality with a population of more than |
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140,000 but less than 1.5 million that is located in a county with a |
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population of one million or more and that has adopted a capital |
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improvement plan for the construction or expansion of a convention |
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center facility; |
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(B) a municipality with a population of 250,000 |
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or more that: |
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(i) is located wholly or partly on a barrier |
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island that borders the Gulf of Mexico; |
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(ii) is located in a county with a |
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population of 300,000 or more; and |
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(iii) has adopted a capital improvement |
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plan to expand an existing convention center facility; |
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(C) a municipality with a population of 116,000 |
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or more that: |
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(i) is located in two counties both of which |
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have a population of 660,000 or more; and |
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(ii) has adopted a capital improvement plan |
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for the construction or expansion of a convention center facility; |
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(D) a municipality with a population of less than |
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50,000 that contains a general academic teaching institution that |
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is not a component institution of a university system, as those |
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terms are defined by Section 61.003, Education Code; [or] |
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(E) a municipality with a population of 640,000 |
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or more that: |
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(i) is located on an international border; |
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and |
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(ii) has adopted a capital improvement plan |
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for the construction or expansion of a convention center facility; |
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or |
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(F) a municipality that has a population of at |
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least 70,000 but not more than 180,000 and that is located in a |
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county that borders the United Mexican States and the Gulf of |
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Mexico. |
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SECTION 2. Section 351.003, Tax Code, is amended by adding |
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Subsection (g) to read as follows: |
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(g) The rate in a municipality described by Section |
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351.001(7)(F) may not exceed nine percent of the price paid for a |
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room. The municipality shall allocate for the construction, |
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expansion, maintenance, financing, operation, or debt service of a |
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convention center or multiuse facility all revenue received by the |
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municipality that is derived from the application of the tax at a |
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rate of more than seven percent of the price paid for a room in a |
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hotel. |
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SECTION 3. Section 351.101, Tax Code, is amended by adding |
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Subsection (t) to read as follows: |
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(t) In addition to other authorized uses, a municipality |
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described by Section 351.001(7)(F) may use revenue from the |
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municipal hotel occupancy tax to pay costs associated with the |
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construction, expansion, maintenance, financing, operation, or |
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debt service of a convention center or multiuse facility. |
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SECTION 4. This Act takes effect September 1, 2023. |