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89(R) HB 4412 - Engrossed version - Bill Text
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.