TITLE: Relating to increasing the maximum rate at which certain municipalities may impose a hotel occupancy tax and to the use of revenue from that tax.

SUMMARY: Relating to increasing the maximum rate at which certain municipalities may impose a hotel occupancy tax and to the use of revenue from that tax.

FULL TEXT:
AN ACT relating to increasing the maximum rate at which certain municipalities may impose a hotel occupancy tax and to the use of revenue from that tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 351.003(d), Tax Code, is amended to read as follows: (d) The rate in an eligible barrier island coastal municipality may not exceed nine [8-1/2] percent of the price paid for a room. SECTION 2. Section 351.1055(e), Tax Code, is amended to read as follows: (e) An eligible barrier island coastal municipality [that imposes the tax at a rate equal to or greater than 7-1/2 percent of the price paid for a room] shall use at least the amount of revenue derived from the application of the tax at a rate of [one-half of] one percent of the cost of a room for erosion response projects. 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.