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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of hotel occupancy tax revenue collected |
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by certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.103, Tax Code, is amended by |
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amending Subsection (b) and adding Subsection (b-1) to read as |
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follows: |
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(b) Subsection (a) does not apply to: |
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(1) a municipality in a fiscal year of the |
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municipality if the total amount of hotel occupancy tax collected |
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by the municipality in the most recent calendar year that ends at |
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least 90 days before the date the fiscal year begins exceeds $2 |
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million; or |
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(2) a municipality that has a population of at least |
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200,000 and shares a border with: |
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(A) a municipality described by Section |
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351.102(e)(7); and |
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(B) Lake Ray Hubbard. |
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(b-1) A municipality excepted from the application of |
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Subsection (a) by Subsection (b) [this subsection] shall allocate |
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hotel occupancy tax revenue by ordinance, consistent with the other |
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limitations of this section. The portion of the tax revenue |
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allocated by a municipality with a population of more than 1.6 |
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million for the purposes provided by Section 351.101(a)(3) may not |
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be less than 23 percent, except that the allocation is subject to |
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and may not impair the authority of the municipality to: |
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(1) pledge all or any portion of that tax revenue to |
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the payment of bonds as provided by Section 351.102(a) or bonds |
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issued to refund bonds secured by that pledge; or |
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(2) spend all or any portion of that tax revenue for |
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the payment of operation and maintenance expenses of convention |
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center facilities. |
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SECTION 2. The change in law made by this Act applies only |
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to the allocation of hotel occupancy tax revenue by a municipality |
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for a fiscal year that begins on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2019. |