TITLE: Relating to the use of municipal hotel occupancy tax revenue by certain municipalities.

SUMMARY: Relating to the use of municipal hotel occupancy tax revenue by certain municipalities.

FULL TEXT:
AN ACT relating to the use of municipal hotel occupancy tax revenue by certain municipalities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 351.10692, Tax Code, is amended by amending Subsections (a) and (c) and adding Subsection (e) to read as follows: (a) This section applies only to a municipality that is [with a population of less than 2,000] located in a county that: (1) is adjacent to the county in which the State Capitol is located; and (2) contains [has a population of]:(A) a headquarters and visitor center for a national historical park dedicated to a former president of the United States [not more than 25,000];or (B) more than one area that is certified as a Dark Sky Community by the International Dark-Sky Association as part of the International Dark Sky Places Program [at least 100,000 but not more than 200,000].(c) A municipality that uses revenue from the municipal hotel occupancy tax for a purpose described by Subsection (b): (1) shall make a good-faith estimate based on reasonable documentation of [determine] the annual amount of area hotel revenue attributable to dark skies related events and activities [for five years after the date the municipality first uses hotel occupancy tax revenue for a purpose described by Subsection (b)];and (2) may not spend municipal hotel occupancy tax revenue for the purposes described by Subsection (b) in an annual [a total] amount that exceeds the amount determined under Subdivision (1). (e) A municipality that uses municipal hotel occupancy tax revenue under this section 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.