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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of hotel occupancy tax revenue for certain |
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public improvement projects by 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 351.111 to read as follows: |
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Sec. 351.111. ALLOCATION OF REVENUE: CERTAIN |
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MUNICIPALITIES. (a) This section applies only to a municipality |
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that is the county seat of a county that borders New Mexico and |
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contains a portion of a state park that is located in two counties. |
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(b) Subject to Subsections (c) and (e), in addition to other |
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authorized uses, a municipality to which this section applies may |
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use revenue from the municipal hotel occupancy tax for the |
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promotion of tourism by funding public improvement projects that |
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directly benefit the hotel and tourism industry. |
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(c) A municipality to which this section applies may not use |
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municipal hotel occupancy tax revenue under this section: |
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(1) to fund more than 25 percent of the total costs of |
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a public improvement project described by Subsection (b); or |
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(2) in an amount that causes the total amount of |
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municipal hotel occupancy tax revenue used for the purposes |
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described by Section 351.101(a) during a calendar year to be less |
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than the average annual amount of municipal hotel occupancy tax |
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revenue used by the municipality for those purposes during the |
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36-month period preceding the municipality's use of the revenue |
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under Subsection (b). |
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(d) Notwithstanding any other law, on or after the eighth |
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anniversary of the date a municipality first uses municipal hotel |
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occupancy tax revenue for a public improvement project described by |
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Subsection (b), the municipality may not impose a municipal hotel |
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occupancy tax at a rate that exceeds two percent of the price paid |
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for a room in a hotel. |
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(e) A municipality to which this section applies may not use |
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municipal hotel occupancy tax revenue for a public improvement |
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project described by Subsection (b) after December 31, 2034. |
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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, 2025. |