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A BILL TO BE ENTITLED
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AN ACT
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relating to the use and allocation of municipal hotel occupancy tax |
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revenue in certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.101, Tax Code, is amended by adding |
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Subsection (o) to read as follows: |
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(o) In addition to the purposes provided by Subsection (a), |
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a municipality that has a population of not more than 10,000, that |
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contains an outdoor gear and sporting goods retailer with retail |
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space larger than 175,000 square feet, and that hosts an annual |
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wiener dog race may use revenue from the municipal hotel occupancy |
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tax to promote tourism and the convention and hotel industry by |
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constructing, operating, or expanding a sporting related facility |
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or sports field owned by the municipality, if the majority of the |
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events at the facility or field are directly related to a sporting |
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event in which the majority of participants are tourists who |
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substantially increase economic activity at hotels in the |
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municipality. If a municipality to which this subsection applies |
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uses revenue derived from the municipal hotel occupancy tax for a |
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purpose described by this subsection, the municipality may not |
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reduce the percentage of revenue from that tax allocated for a |
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purpose described by Section 351.101(a)(3) to a percentage that is |
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less than the average percentage of that revenue allocated by the |
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municipality for that purpose during the 36-month period preceding |
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the date the municipality begins using the revenue for a purpose |
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described by this subsection. |
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SECTION 2. Section 351.1078, Tax Code, is amended to read as |
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follows: |
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Sec. 351.1078. ALLOCATION OF REVENUE: CERTAIN |
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MUNICIPALITIES. (a) A municipality that spends municipal hotel |
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occupancy tax revenue as authorized by Section 351.101(i) or (o): |
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(1) may not use municipal hotel occupancy tax revenue |
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for the acquisition of land for the sporting related facility or |
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sports field described by that subsection; |
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(2) shall annually determine and prepare and publish |
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on the municipality's Internet website a report on the events held |
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at the facility or field, the number of hotel room nights |
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attributable to events held at the facility or field, and the amount |
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of hotel revenue and municipal tax revenue attributable to the |
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sports events and tournaments held at the facility or field for five |
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years after the date the construction expenditures are completed; |
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and |
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(3) may only spend hotel occupancy tax revenue for |
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operational expenses of the facility or field if the costs are |
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directly related to a sporting event in which the majority of |
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participants are tourists who substantially increase economic |
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activity at hotels in or near the municipality. |
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(b) The municipality shall reimburse to the municipality's |
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hotel occupancy tax revenue fund from the municipality's general |
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fund any expenditure in excess of the amount of area hotel revenue |
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attributable to sporting events held at the sporting related |
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facility or sports field described by Section 351.101(i) or (o) for |
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five years after the date the construction or expansion of the |
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facility or field described by that subsection is completed. |
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SECTION 3. 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, 2017. |