2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle D - Local Hotel Occupancy Taxes › Chapter 351 - Municipal Hotel Occupancy Taxes › Subchapter B. Use and Allocation of Revenue › Section 351.103. Allocation of Revenue: General Rule

Sec. 351.103.  ALLOCATION OF REVENUE:  GENERAL RULE.
(a)  A municipality with a population of less than 200,000 shall allocate for the purposes provided by Section 351.101(a)(3) an amount of hotel occupancy tax revenue collected by the municipality that is not less than the amount of revenue received by the municipality from the tax at a rate of one percent of the cost of a room.
(b)  A municipality with a population of more than 1.6 million shall allocate at least 23 percent of the hotel occupancy tax revenue collected by the municipality for the purposes provided by Section 351.101(a)(3), except that the allocation is subject to and may not impair the authority of the municipality to:
(1)  pledge all or any portion of that tax revenue to the payment of bonds as provided by Section 351.102(a) or bonds issued to refund bonds secured by that pledge; or
(2)  spend all or any portion of that tax revenue for the payment of operation and maintenance expenses of convention center facilities.
(b-1)  Notwithstanding Subsection (a), at least 30 percent of the hotel occupancy tax revenue collected by a municipality described by Section 351.101(a)(6)(C) must be allocated for the purposes provided by Section 351.101(a)(3).
(c)  Not more than 15 percent of the hotel occupancy tax revenue collected by a municipality, other than a municipality having a population of more than 1.6 million, or the amount of tax received by the municipality at the rate of one percent of the cost of a room, whichever is greater, may be used for the purposes provided by Section 351.101(a)(4).  Not more than 19.30 percent of the hotel occupancy tax revenue collected by a municipality having a population of more than 1.6 million, or the amount of tax received by the municipality at the rate of one percent of the cost of a room, whichever is greater, may be used for the purposes provided by Section 351.101(a)(4).  Not more than 15 percent of the hotel occupancy tax revenue collected by a municipality may be used for the purposes provided by Section 351.101(a)(5).  A municipality that before January 1, 2023, adopted in accordance with state law an ordinance providing for the allocation of an amount in excess of 15 percent of the hotel occupancy tax revenue collected by the municipality for one or more of the specific purposes provided by Section 351.101(a)(5) may allocate tax revenue as provided by that ordinance until the ordinance is repealed or expires or until the revenue is no longer used for those specific purposes.
(d)  Repealed by Acts 2023, 88th Leg., R.S., Ch. 357 (S.B. 1420), Sec. 9(1), eff. June 2, 2023, and Ch. 643 (H.B. 3727), Sec. 10(1), eff. June 12, 2023.
(e)  Repealed by Acts 2023, 88th Leg., R.S., Ch. 357 (S.B. 1420), Sec. 9(1), eff. June 2, 2023, and Ch. 643 (H.B. 3727), Sec. 10(1), eff. June 12, 2023.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.24(b), eff. Aug. 28, 1989;  Acts 1989, 71st Leg., ch. 1110, Sec. 6, eff. Oct. 1, 1989;  Acts 1993, 73rd Leg., ch. 153, Sec. 1, eff. Aug. 30, 1993;  Acts 1993, 73rd Leg., ch. 680, Sec. 5, eff. Sept. 1, 1993;  Acts 2001, 77th Leg., ch. 1308, Sec. 5, eff. June 16, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 405 (S.B. 1262), Sec. 2, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 357 (S.B. 1420), Sec. 5, eff. June 2, 2023.
Acts 2023, 88th Leg., R.S., Ch. 357 (S.B. 1420), Sec. 9(1), eff. June 2, 2023.
Acts 2023, 88th Leg., R.S., Ch. 643 (H.B. 3727), Sec. 5, eff. June 12, 2023.
Acts 2023, 88th Leg., R.S., Ch. 643 (H.B. 3727), Sec. 10(1), eff. June 12, 2023.