Bill Text: TX HB2497 | 2023-2024 | 88th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the use of municipal hotel occupancy tax revenue by certain municipalities.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-06-12 - Effective immediately [HB2497 Detail]

Download: Texas-2023-HB2497-Engrossed.html

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88R19893 CJD-F
By: Morrison H.B. No. 2497

A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal hotel occupancy tax revenue by
certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.10713 to read as follows:
Sec. 351.10713. ALLOCATION OF REVENUE FOR CONSTRUCTION,
EXPANSION, AND OPERATION OF RECREATIONAL OR SPORTS FACILITIES AND
FIELDS BY CERTAIN MUNICIPALITIES. (a) This section applies only
to a municipality that is the county seat of a county:
(1) that borders the Gulf of Mexico; and
(2) through which the Colorado River flows.
(b) Notwithstanding any other provision of this chapter and
subject to Subsections (c), (d), and (e), a municipality to which
this section applies may, for the purpose of promoting tourism and
the convention and hotel industry, use revenue derived from the
municipal hotel occupancy tax to:
(1) construct and expand recreational or sports
facilities and fields owned by the municipality or another
governmental entity; and
(2) operate recreational or sports facilities and
fields owned by the municipality or another governmental entity.
(c) A municipality to which this section applies that uses
municipal hotel occupancy tax revenue for a purpose described by
Subsection (b)(1):
(1) shall determine the amount of municipal hotel
occupancy tax revenue generated for the municipality by hotel
activity attributable to the events held at the recreational or
sports facilities and fields for five years after the date the
construction or expansion of the facilities and fields is complete;
(2) may not spend municipal hotel occupancy tax
revenue for a purpose described by Subsection (b)(1) in a total
amount that exceeds the amount of area hotel revenue attributable
to the construction or expansion of the facilities and fields; and
(3) shall reimburse from the municipality's general
fund any expenditure in excess of the amount of area hotel revenue
attributable to the construction or expansion of the facilities and
fields to the municipality's hotel occupancy tax revenue fund.
(d) A municipality to which this section applies may not use
municipal hotel occupancy tax revenue for a purpose described by
Subsection (b)(2) in an amount each year that exceeds the amount of
area hotel revenue in that year attributable to events held at the
recreational or sports facilities and fields.
(e) If a municipality to which this section applies uses
revenue derived from the municipal hotel occupancy tax for a
purpose described by Subsection (b), the municipality may not
reduce the percentage of revenue from that tax allocated for a
purpose described by Section 351.101(a)(3) to a percentage that is
less than the average percentage of that revenue allocated by the
municipality for that purpose during the 36-month period preceding
the date the municipality begins using the revenue for a purpose
described by Subsection (b).
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.