HB4412 - Relating to the use of hotel occupancy tax revenue for certain public improvement projects by certain municipalities.

  89R20434 CJD-F     By: Landgraf H.B. No. 4412       A BILL TO BE ENTITLED   AN ACT   relating to the use of hotel occupancy tax revenue for certain   public improvement projects 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 351.111 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, 2034.          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, 2025.