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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing certain counties to impose a hotel |
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occupancy tax and the use of revenue from that tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 352.002, Tax Code, is amended by adding |
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Subsection (kk) to read as follows: |
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(kk) The commissioners court of a county with a population |
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of less than 100,000 that borders the Navasota River and in which an |
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annual renaissance festival is held may impose a tax as provided by |
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Subsection (a). A tax imposed under this subsection does not apply |
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to a hotel operated by a nonprofit organization exempt from federal |
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income taxation under Section 501(a), Internal Revenue Code of |
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1986, by being listed as an exempt organization in Section |
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501(c)(3) of that code. |
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SECTION 2. Section 352.003, Tax Code, is amended by adding |
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Subsection (gg) to read as follows: |
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(gg) The tax rate in a county authorized to impose the tax |
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under Section 352.002(kk) may not exceed seven percent of the price |
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paid for a room in a hotel, except that the tax rate may not exceed |
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two percent of the price paid for a room in a hotel if the hotel is |
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located in: |
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(1) a municipality that imposes a tax under Chapter |
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351 applicable to the hotel; or |
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(2) the extraterritorial jurisdiction of a |
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municipality that imposes a tax under Section 351.0025 applicable |
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to the hotel. |
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SECTION 3. Subchapter B, Chapter 352, Tax Code, is amended |
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by adding Section 352.119 to read as follows: |
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Sec. 352.119. USE OF REVENUE: CERTAIN COUNTIES BORDERING |
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THE NAVASOTA RIVER. In addition to the purposes authorized by this |
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chapter, the revenue from a tax imposed under this chapter by a |
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county authorized to impose the tax under Section 352.002(kk) may |
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be used for: |
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(1) the construction, enlarging, equipping, |
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improvement, maintenance, repairing, and operation of a civic |
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center with an arena used for rodeos, livestock shows, or |
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agricultural expositions to enhance hotel activity and encourage |
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tourism; |
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(2) advertising and conducting solicitations and |
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promotional programs to attract tourists or convention delegates to |
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the county, any of which may be conducted by the county or through a |
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contract with a person or organization selected by the county; and |
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(3) encouraging, promoting, and improving historical |
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preservation and restoration efforts. |
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SECTION 4. 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. |