TITLE: Relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax.

SUMMARY: Relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax.

FULL TEXT:
AN ACT relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 352.002, Tax Code, is amended by adding Subsection (kk) to read as follows: (kk) The commissioners court of a county with a population of less than 100,000 that borders the Navasota River and in which an annual renaissance festival is held may impose a tax as provided by Subsection (a). SECTION 2. Section 352.003, Tax Code, is amended by adding Subsection (gg) to read as follows: (gg) The tax rate in a county authorized to impose the tax under Section 352.002(kk) may not exceed seven percent of the price paid for a room in a hotel, except that the tax rate may not exceed two percent of the price paid for a room in a hotel if the hotel is located in: (1) a municipality that imposes a tax under Chapter 351 applicable to the hotel; or (2) the extraterritorial jurisdiction of a municipality that imposes a tax under Section 351.0025 applicable to the hotel. SECTION 3. Subchapter B, Chapter 352, Tax Code, is amended by adding Section 352.119 to read as follows: Sec. 352.119. USE OF REVENUE: CERTAIN COUNTIES BORDERING THE NAVASOTA RIVER. In addition to the purposes authorized by this chapter, the revenue from a tax imposed under this chapter by a county authorized to impose the tax under Section 352.002(kk) may be used for: (1) the construction, enlarging, equipping, improvement, maintenance, repairing, and operation of a civic center with an arena used for rodeos, livestock shows, or agricultural expositions to enhance hotel activity and encourage tourism; (2) advertising and conducting solicitations and promotional programs to attract tourists or convention delegates to the county, any of which may be conducted by the county or through a contract with a person or organization selected by the county; and (3) encouraging, promoting, and improving historical preservation and restoration efforts. SECTION 4. 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.