Wharton’s 7% Hotel Tax Fits One County On The Navasota River

The text as introduced · 439 words

89R12205 JBD-F

By: Wharton
H.B. No. 4926

A BILL TO BE ENTITLED

AN ACT

relating to authorizing certain counties to impose a hotel

occupancy tax and the use of revenue from that tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 352.002, Tax Code, is amended by adding

Subsection (kk) to read as follows:

(kk) The commissioners court of a county with a population

of less than 100,000 that borders the Navasota River and in which an

annual renaissance festival is held may impose a tax as provided by

Subsection (a). A tax imposed under this subsection does not apply

to a hotel operated by a nonprofit organization exempt from federal

income taxation under Section 501(a), Internal Revenue Code of

1986, by being listed as an exempt organization in Section

501(c)(3) of that code.

SECTION 2. Section 352.003, Tax Code, is amended by adding

Subsection (gg) to read as follows:

(gg) The tax rate in a county authorized to impose the tax

under Section 352.002(kk) may not exceed seven percent of the price

paid for a room in a hotel, except that the tax rate may not exceed

two percent of the price paid for a room in a hotel if the hotel is

located in:

(1) a municipality that imposes a tax under Chapter

351 applicable to the hotel; or

(2) the extraterritorial jurisdiction of a

municipality that imposes a tax under Section 351.0025 applicable

to the hotel.

SECTION 3. Subchapter B, Chapter 352, Tax Code, is amended

by adding Section 352.119 to read as follows:

Sec. 352.119. USE OF REVENUE: CERTAIN COUNTIES BORDERING

THE NAVASOTA RIVER. In addition to the purposes authorized by this

chapter, the revenue from a tax imposed under this chapter by a

county authorized to impose the tax under Section 352.002(kk) may

be used for:

(1) the construction, enlarging, equipping,

improvement, maintenance, repairing, and operation of a civic

center with an arena used for rodeos, livestock shows, or

agricultural expositions to enhance hotel activity and encourage

tourism;

(2) advertising and conducting solicitations and

promotional programs to attract tourists or convention delegates to

the county, any of which may be conducted by the county or through a

contract with a person or organization selected by the county; and

(3) encouraging, promoting, and improving historical

preservation and restoration efforts.

SECTION 4. 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, 2025.