TITLE: Relating to the use of municipal hotel occupancy tax revenue for certain infrastructure projects and public parks.

SUMMARY: Relating to the use of municipal hotel occupancy tax revenue for certain infrastructure projects and public parks.

FULL TEXT:
AN ACT relating to the use of municipal hotel occupancy tax revenue for certain infrastructure projects and public parks. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended by adding Section 351.1011 to read as follows: Sec. 351.1011. USE OF TAX REVENUE FOR CERTAIN INFRASTRUCTURE PROJECTS AND PUBLIC PARKS. (a) In this section, "qualified infrastructure" means: (1) a road, street, highway, bridge, overpass, underpass, or interchange: (A) from which an entrance to a hotel is accessible; or (B) that constitutes, wholly or partly, the shortest route between a hotel and a state highway, interstate highway, public beach, visitor or tourism information center, or convention center facility or complex that is located within five miles of the hotel; (2) a water supply system from which a hotel receives water; (3) a sanitary sewer system into which a hotel discharges wastewater; or (4) a storm drainage system into which runoff from a hotel flows. (b) In addition to the purposes provided by Section 351.101(a), a municipality may use revenue from the municipal hotel occupancy tax to promote tourism and the convention and hotel industry by: (1) acquiring, constructing, repairing, remodeling, or expanding qualified infrastructure that is owned by the municipality and that is located not more than one mile from a hotel; and (2) making improvements to a public park that is owned by the municipality and that is located not more than one mile from a hotel. (c) The amount of municipal hotel occupancy tax revenue a municipality may use in a fiscal year for a purpose authorized under this section may not exceed 20 percent of the amount of revenue the municipality collected from that tax during the preceding fiscal year. (d) A municipality that uses municipal hotel occupancy tax revenue under this section: (1) may, notwithstanding the limitation under Subsection (c), reserve not more than 20 percent of the revenue from that tax collected in a fiscal year for use under this section during the succeeding three fiscal years; and (2) may not reduce the percentage of revenue from that tax allocated for a purpose described by Section 351.101(a)(3) to a percentage that is less than the average percentage of the revenue from that tax allocated by the municipality for the purpose described by Section 351.101(a)(3) during the 36-month period preceding the date the municipality begins using revenue for a purpose described by this section. 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.