Relating to the use by certain municipalities of municipal hotel occupancy tax revenue to fund public improvement projects that directly benefit the hotel and tourism industry.

The text as introduced · 397 words

90R3075 CJD-D

By: Landgraf
H.B. No. 701

A BILL TO BE ENTITLED

AN ACT

relating to the use by certain municipalities of municipal hotel

occupancy tax revenue to fund public improvement projects that

directly benefit the hotel and tourism industry.

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

SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended

by adding Section 351.111 to read as follows:

Sec. 351.111. ALLOCATION OF REVENUE: CERTAIN

MUNICIPALITIES. (a) This section applies only to a municipality

that is the county seat of a county that borders New Mexico and

contains a portion of a state park that is located in two counties.

(b) Subject to Subsections (c) and (e), in addition to other

authorized uses, a municipality to which this section applies may

use revenue from the municipal hotel occupancy tax for the

promotion of tourism by funding public improvement projects that

directly benefit the hotel and tourism industry.

(c) A municipality to which this section applies may not use

municipal hotel occupancy tax revenue under this section:

(1) to fund more than 25 percent of the total costs of

a public improvement project described by Subsection (b); or

(2) in an amount that causes the total amount of

municipal hotel occupancy tax revenue used for the purposes

described by Section 351.101(a) during a calendar year to be less

than the average annual amount of municipal hotel occupancy tax

revenue used by the municipality for those purposes during the

36-month period preceding the municipality's use of the revenue

under Subsection (b).

(d) Notwithstanding any other law, on or after the eighth

anniversary of the date a municipality first uses municipal hotel

occupancy tax revenue for a public improvement project described by

Subsection (b), the municipality may not impose a municipal hotel

occupancy tax at a rate that exceeds two percent of the price paid

for a room in a hotel.

(e) A municipality to which this section applies may not use

municipal hotel occupancy tax revenue for a public improvement

project described by Subsection (b) after December 31, 2036.

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, 2027.