HB4095 - Relating to the rate of the hotel occupancy tax in certain municipalities and the use of certain revenue from that tax by those municipalities; authorizing an increase in the rate of a tax.

  89R13953 CJD-F     By: Hunter H.B. No. 4095       A BILL TO BE ENTITLED   AN ACT   relating to the rate of the hotel occupancy tax in certain   municipalities and the use of certain revenue from that tax by those   municipalities; authorizing an increase in the rate of a tax.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 351.003, Tax Code, is amended by adding   Subsection (g) to read as follows:           (g)     This subsection applies only to an eligible coastal   municipality that has a population of 5,000 or less and in which a   ferry system that is a part of the state highway system is located.     The rate in a municipality to which this subsection applies may   exceed the rate authorized by Subsection (a), but may not exceed   eight percent of the price paid for a room, if a temporary increase   in the tax rate is approved by a majority of the voters of the   municipality voting at an election held for that purpose.   This   subsection expires December 31, 2035.          SECTION 2.  Section 351.105, Tax Code, is amended by   amending Subsection (a) and adding Subsections (h), (i), and (j) to   read as follows:          (a)  An eligible coastal municipality that levies and   collects an occupancy tax authorized by this chapter at a rate of   seven percent shall pledge a portion of the revenue equal to at   least one percent of the cost of a room to either or both of the   following purposes:                (1)  the payment of the bonds that the municipality or a   park board of trustees may issue under Section 1504.002(a),   Government Code, or under Chapter 306, Local Government Code, in   order to provide all or part of the funds for the establishment,   acquisition, purchase, construction, improvement, enlargement,   equipment, or repair of public improvements, including parks, civic   centers, civic center buildings, auditoriums, exhibition halls,   coliseums, marinas, cruise ship terminal facilities, hotels,   motels, parking facilities, streetscapes, golf courses, trolley or   trolley transportation systems, and other facilities as may be   considered advisable in connection with these facilities that serve   the purpose of attracting visitors and tourists to the   municipality; or                (2)  the maintenance, improvement, or operation of the   parks, civic centers, civic center buildings, auditoriums,   exhibition halls, coliseums, marinas, cruise ship terminal   facilities, hotels, motels, parking facilities, streetscapes, golf   courses, trolley or trolley transportation systems, and other   facilities as may be considered advisable in connection with these   facilities that serve the purpose of attracting visitors and   tourists to the municipality.           (h)     If the tax authorized by this chapter is imposed by an   eligible coastal municipality to which Section 351.003(g) applies   at a rate of more than seven percent of the cost of a room, the   municipality may, subject to Subsection (i), use all or part of the   revenue derived from the application of the tax at a rate of more   than seven percent for the beautification of streetscapes and the   improvement of the municipality's main streets, including   improvements relating to pedestrian safety and accessibility.           (i)     A municipality described by Subsection (h) may not spend   more revenue for the purposes described by that subsection during a   calendar year than the total amount the municipality spends for   those purposes from all other sources of funds.           (j)     Subsections (h) and (i) and this subsection expire   December 31, 2035.          SECTION 3.  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.