TAX CODE
SUBTITLE D. LOCAL HOTEL OCCUPANCY TAXES
CHAPTER 351. MUNICIPAL HOTEL OCCUPANCY TAXES
SUBCHAPTER A. IMPOSITION AND COLLECTION OF TAX
§ 351.001. DEFINITIONS. In this chapter:
(1) "Municipality" includes any incorporated city,
town, or village.
(2) "Convention center facilities" or "convention
center complex" means facilities that are primarily used to host
conventions and meetings. The term means civic centers, civic
center buildings, auditoriums, exhibition halls, and coliseums
that are owned by the municipality or other governmental entity or
that are managed in whole or part by the municipality. In a
municipality with a population of 1.5 million or more, "convention
center facilities" or "convention center complex" means civic
centers, civic center buildings, auditoriums, exhibition halls,
and coliseums that are owned by the municipality or other
governmental entity or that are managed in part by the
municipality, hotels owned by the municipality or a nonprofit
municipally sponsored local government corporation created under
Chapter 431, Transportation Code, within 1,000 feet of a convention
center owned by the municipality, or a historic hotel owned by the
municipality or a nonprofit municipally sponsored local government
corporation created under Chapter 431, Transportation Code, within
one mile of a convention center owned by the municipality. The term
includes parking areas or facilities that are for the parking or
storage of conveyances and that are located at or in the vicinity of
other convention center facilities. The term also includes a hotel
owned by or located on land that is owned by an eligible central
municipality or by a nonprofit corporation acting on behalf of an
eligible central municipality and that is located within 1,000 feet
of a convention center facility owned by the municipality.
(3) "Eligible coastal municipality" means a home-rule
municipality that borders on the Gulf of Mexico and has a population
of less than 80,000.
(4) "Hotel" has the meaning assigned by Section
156.001.
(5) "Tourism" means the guidance or management of
tourists.
(6) "Tourist" means an individual who travels from the
individual's residence to a different municipality, county, state,
or country for pleasure, recreation, education, or culture.
(7) "Eligible central municipality" means a
municipality with a population of more than 440,000 but less than
1.5 million that is located in a county with a population of one
million or more and that has adopted a capital improvement plan for
the expansion of an existing convention center facility.
(8) "Visitor information center" or "tourism
information center" means a building or a portion of a building used
to distribute or disseminate information to tourists.
(9) "Revenue" includes any interest derived from the
revenue.
(10) "Revenue" includes any interest derived from the
revenue.
Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 1110, § 1, eff. Oct. 1,
1989; Acts 1993, 73rd Leg., ch. 231, § 1, eff. Aug. 30, 1993;
Acts 1993, 73rd Leg., ch. 620, § 1, eff. Aug. 30, 1993; Acts
1993, 73rd Leg., ch. 680, § 1, eff. Sept. 1, 1993; Acts 1995,
74th Leg., ch. 76, § 17.01(51), eff. Sept. 1, 1995; Acts 1995,
74th Leg., ch. 454, § 5, eff. Sept. 1, 1995; Acts 1997, 75th
Leg., ch. 165, § 30.273, eff. Sept. 1, 1997; Acts 1999, 76th
Leg., ch. 495, § 1, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch.
1004, § 1, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1467,
§ 2.71, eff. Oct. 1, 1999; Acts 2001, 77th Leg., ch. 1308, §
1, eff. June 16, 2001.
§ 351.002. TAX AUTHORIZED. (a) A municipality by
ordinance may impose a tax on a person who, under a lease,
concession, permit, right of access, license, contract, or
agreement, pays for the use or possession or for the right to the
use or possession of a room that is in a hotel, costs $2 or more each
day, and is ordinarily used for sleeping.
(b) The price of a room in a hotel does not include the cost
of food served by the hotel and the cost of personal services
performed by the hotel for the person except for those services
related to cleaning and readying the room for use or possession.
(c) The tax does not apply to a person who is a permanent
resident under Section 156.101 of this code.
Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987.
Amended by Acts 1991, 72nd Leg., ch. 328, § 5, eff. Aug. 26,
1991.
§ 351.0025. EXTRATERRITORIAL JURISDICTION. (a) A
municipality with a population of less than 35,000 by ordinance may
impose the tax authorized under Section 351.002 in the
municipality's extraterritorial jurisdiction.
(b) The municipality may not impose a tax under this section
if as a result of the adoption the combined rate of state, county,
and municipal hotel occupancy taxes in the extraterritorial
jurisdiction exceeds 15 percent of the price paid for a room in a
hotel.
Added by Acts 1991, 72nd Leg., ch. 328, § 3, eff. Aug. 26, 1991.
Amended by Acts 1993, 73rd Leg., ch. 680, § 2, eff. Sept. 1,
1993.
§ 351.003. TAX RATES. (a) Except as provided by this
section, the tax authorized by this chapter may be imposed at any
rate not to exceed seven percent of the price paid for a room in a
hotel.
(b) The rate in an eligible central municipality may not
exceed nine percent of the price paid for a room. This subsection
does not apply to a municipality to which Section 351.106 applies.
(c) The rate in a municipality that borders on the Gulf of
Mexico and has a population of more than 250,000 or in a
municipality with a population of less than 5,000 adjacent to a
home-rule city with a population of less than 80,000 may not exceed
nine percent of the price paid for a room.
Text of subsec. (d) effective until January 1, 2006
(d) A general-law municipality that borders on the Gulf of
Mexico and has a boundary that is within 30 miles of Mexico may by
ordinance increase the rate of the tax under Subsection (a) to a
maximum rate of 7.5 percent if the increase is approved by a
majority of the registered voters of the municipality voting at an
election held for that purpose.
Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 2, § 14.23(a), eff. Aug. 28,
1989; Acts 1993, 73rd Leg., ch. 620, § 2, eff. Aug. 30, 1993;
Acts 1999, 76th Leg., ch. 825, § 1, eff. June 18, 1999; Acts
2001, 77th Leg., ch. 1308, § 2, eff. June 16, 2001; Acts 2003,
78th Leg., ch. 247, § 2, eff. Sept. 1, 2003; Acts 2003, 78th
Leg., ch. 382, § 1, 3, eff. June 18, 2003.
§ 351.004. TAX COLLECTION. (a) The municipal attorney
or other attorney acting for the municipality may bring suit
against a person who is required to collect the tax imposed by this
chapter and pay the collections over to the municipality and who has
failed to file a tax report or pay the tax when due to collect the
tax not paid or to enjoin the person from operating a hotel in the
municipality until the tax is paid or the report filed, as
applicable, as provided by the court's order. In addition to the
amount of any tax owed under this chapter, the person is liable to
the municipality for the municipality's reasonable attorney's fees
and a penalty equal to 15 percent of the total amount of the tax
owed.
(b) Section 16.061, Civil Practice and Remedies Code,
applies to the collection of a tax under this chapter. A limitation
period provided by Title 2 relating to the time allowed to assess
taxes and bring a suit to collect taxes does not apply to a tax
imposed under this chapter or to a suit brought under this section.
(c) A municipality by ordinance may authorize misdemeanor
punishment for a violation of an ordinance adopted under this
chapter.
(d) The remedies provided by this section are in addition to
other available remedies.
Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 1110, § 2, eff. Oct. 1,
1989; Acts 1993, 73rd Leg., ch. 259, § 1.
§ 351.0041. COLLECTION PROCEDURES ON PURCHASE OF
HOTEL. (a) If a person who is liable for the payment of a tax
under this chapter is the owner of a hotel and sells the hotel, the
successor to the seller or the seller's assignee shall withhold an
amount of the purchase price sufficient to pay the amount due until
the seller provides a receipt by a person designated by the
municipality to provide the receipt showing that the amount has
been paid or a certificate showing that no tax is due.
(b) The purchaser of a hotel who fails to withhold an amount
of the purchase price as required by this section is liable for the
amount required to be withheld to the extent of the value of the
purchase price.
(c) The purchaser of a hotel may request that the person
designated by the municipality to provide a receipt under
Subsection (a) issue a certificate stating that no tax is due or
issue a statement of the amount required to be paid before a
certificate may be issued. The person designated by the
municipality shall issue the certificate or statement not later
than the 60th day after the date that the person receives the
request.
(d) If the person designated by the municipality to provide
a receipt under Subsection (a) fails to issue the certificate or
statement within the period provided by Subsection (c), the
purchaser is released from the obligation to withhold the purchase
price or pay the amount due.
Added by Acts 1991, 72nd Leg., ch. 328, § 1, eff. Aug. 26, 1991.
§ 351.005. REIMBURSEMENT FOR TAX COLLECTION
EXPENSES. (a) A municipality may permit a person who is required
to collect and pay over to the municipality the tax authorized by
this chapter not more than one percent of the amount collected and
required to be reported as reimbursement to the person for the costs
in collecting the tax.
(b) The municipality may provide that the reimbursement
provided by this section be forfeited because of a failure to pay
the tax or to file a report as required by the municipality.
Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987.
§ 351.006. EXEMPTION. (a) A United States
governmental entity described in Section 156.103(a) is exempt from
the payment of tax authorized by this chapter.
(b) A state governmental entity described in Section
156.103(b) shall pay the tax imposed by this chapter but is entitled
to a refund of the tax paid.
(c) A person who is described by Section 156.103(d) is
exempt from the payment of the tax authorized by this chapter.
(d) A person who is described by Section 156.103(c) shall
pay the tax imposed by this chapter but the state governmental
entity with whom the person is associated is entitled to a refund of
the tax paid.
(e) To receive a refund of tax paid under this chapter, the
governmental entity entitled to the refund must file a refund claim
on a form provided by the municipality and containing the
information required by the municipality. The comptroller by rule
shall prescribe the form that must be used and the information that
must be provided.
(f) A governmental entity may file a refund claim with the
municipality under this chapter only for each calendar quarter for
all reimbursements accrued during that quarter. The municipality
may adopt an ordinance to enforce this section.
(g) The right to use or possess a room in a hotel is exempt
from taxation under this chapter if the person required to collect
the tax receives, in good faith from a guest, an exemption
certificate stating qualification for an exemption provided in
Subsection (c). The exemption must be supported by the
documentation required under rules adopted by the comptroller and
the municipality.
Added by Acts 1989, 71st Leg., ch. 504, § 2, eff. Sept. 1, 1989.
Amended by Acts 1995, 74th Leg., ch. 454, § 6, eff. Sept. 1,
1995; Acts 1999, 76th Leg., ch. 1467, § 2.72, eff. Oct. 1, 1999;
Acts 2003, 78th Leg., ch. 209, § 87, eff. Oct. 1, 2003.
§ 351.007. PREEXISTING CONTRACTS. If a municipality
increases the rate of the tax authorized by this chapter, the
increased tax rate does not apply to the tax imposed on the use or
possession of a room under a contract executed before October 1,
1989, that provides for the payment of the tax at the rate in effect
when the contract was executed, unless the contract is subject to
change or modification by reason of the tax rate increase. The tax
rate applicable to the use or possession of a room under the
contract is the rate in effect when the contract was executed.
Added by Acts 1989, 71st Leg., ch. 1110, § 3, eff. Oct. 1, 1989.
SUBCHAPTER B. USE AND ALLOCATION OF REVENUE
§ 351.101. USE OF TAX REVENUE. (a) Revenue from the
municipal hotel occupancy tax may be used only to promote tourism
and the convention and hotel industry, and that use is limited to
the following:
(1) the acquisition of sites for and the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of convention center facilities or visitor information
centers, or both;
(2) the furnishing of facilities, personnel, and
materials for the registration of convention delegates or
registrants;
(3) advertising and conducting solicitations and
promotional programs to attract tourists and convention delegates
or registrants to the municipality or its vicinity;
(4) the encouragement, promotion, improvement, and
application of the arts, including instrumental and vocal music,
dance, drama, folk art, creative writing, architecture, design and
allied fields, painting, sculpture, photography, graphic and craft
arts, motion pictures, radio, television, tape and sound recording,
and other arts related to the presentation, performance, execution,
and exhibition of these major art forms;
(5) historical restoration and preservation projects
or activities or advertising and conducting solicitations and
promotional programs to encourage tourists and convention
delegates to visit preserved historic sites or museums:
(A) at or in the immediate vicinity of convention
center facilities or visitor information centers; or
(B) located elsewhere in the municipality or its
vicinity that would be frequented by tourists and convention
delegates; and
(6) for a municipality located in a county with a
population of 290,000 or less, expenses, including promotion
expenses, directly related to a sporting event in which the
majority of participants are tourists who substantially increase
economic activity at hotels and motels within the municipality or
its vicinity.
(b) Revenue derived from the tax authorized by this chapter
shall be expended in a manner directly enhancing and promoting
tourism and the convention and hotel industry as permitted by
Subsection (a). That revenue may not be used for the general
revenue purposes or general governmental operations of a
municipality.
(c) The governing body of a municipality by contract may
delegate to a person, including another governmental entity or a
private organization, the management or supervision of programs and
activities funded with revenue from the tax authorized by this
chapter. The governing body in writing shall approve in advance the
annual budget of the person to which it delegates those functions
and shall require the person to make periodic reports to the
governing body at least quarterly listing the expenditures made by
the person with revenue from the tax authorized by this chapter. The
person must maintain revenue provided from the tax authorized by
this chapter in a separate account established for that purpose and
may not commingle that revenue with any other money. The
municipality may not delegate to any person the management or
supervision of its convention and visitors programs and activities
funded with revenue from the tax authorized by this chapter other
than by contract as provided by this subsection. The approval by
the governing body of the municipality of the annual budget of the
person to whom the governing body delegates those functions creates
a fiduciary duty in the person with respect to the revenue provided
by the tax authorized by this chapter.
(d) A person with whom a municipality contracts under this
section to conduct an activity authorized by this section shall
maintain complete and accurate financial records of each
expenditure of hotel occupancy tax revenue made by the person and,
on request of the governing body of the municipality or other
person, shall make the records available for inspection and review
to the governing body or other person.
(e) Hotel occupancy tax revenue spent for a purpose
authorized by this section may be spent for day-to-day operations,
supplies, salaries, office rental, travel expenses, and other
administrative costs only if those administrative costs are
incurred directly in the promotion and servicing expenditures
authorized under Section 351.101(a). If a municipal or other
public or private entity that conducts an activity authorized under
this section conducts other activities that are not authorized
under this section, the portion of the total administrative costs
of the entity for which hotel occupancy tax revenue may be used may
not exceed the portion of those administrative costs actually
incurred in conducting the authorized activities.
(f) Municipal hotel occupancy tax revenue may not be spent
for travel for a person to attend an event or conduct an activity
the primary purpose of which is not directly related to the
promotion of tourism and the convention and hotel industry or the
performance of the person's job in an efficient and professional
manner.
(g) Nothing in this section shall prohibit any private
entity, person, or organization from making subgrants by contract
to any other person, entity, or private organization for
expenditures under Section 351.101(a)(4). A subgrantee shall:
(1) at least annually make periodic reports to the
governing body of its expenditures from the tax authorized by this
chapter; and
(2) make records of these expenditures available for
review to the governing body or other person.
Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 2, § 14.24(a), eff. Aug. 28,
1989; Acts 1989, 71st Leg., ch. 1110, § 4, eff. Oct. 1, 1989;
Acts 1993, 73rd Leg., ch. 680, § 3, eff. Sept. 1, 1993; Acts
1995, 74th Leg., ch. 1027, § 1, eff. Aug. 28, 1995; Acts 2001,
77th Leg., ch. 755, § 1, eff. June 13, 2001; Acts 2001, 77th
Leg., ch. 1308, § 3, eff. June 16, 2001; Acts 2003, 78th Leg.,
ch. 209, § 90, eff. Oct. 1, 2003; Acts 2003, 78th Leg., ch. 303,
§ 1, eff. June 18, 2003.
§ 351.102. PLEDGE FOR BONDS. (a) Subject to the
limitations provided by this subchapter, a municipality may pledge
the revenue derived from the tax imposed under this chapter for the
payment of bonds that are issued under Section 1504.002(a),
Government Code, for one or more of the purposes provided by Section
351.101 or, in the case of a municipality of 1,500,000 or more, for
the payment of principal of or interest on bonds or other
obligations of a municipally sponsored local government
corporation created under Chapter 431, Transportation Code, that
were issued to pay the cost of the acquisition and construction of a
convention center hotel or the cost of acquisition, remodeling, or
rehabilitation of a historic hotel structure; provided, however,
such pledge may only be that portion of the tax collected at such
hotel.
(b) An eligible central municipality may pledge the revenue
derived from the tax imposed under this chapter from a hotel project
that is owned by or located on land owned by the municipality or by a
nonprofit corporation acting on behalf of an eligible central
municipality and that is located within 1,000 feet of a convention
center facility owned by the municipality for the payment of bonds
or other obligations issued or incurred to acquire, lease,
construct, and equip the hotel and any facilities ancillary to the
hotel, including shops and parking facilities. For bonds or other
obligations issued under this subsection, an eligible central
municipality may only pledge revenue or other assets of the hotel
project benefiting from those bonds or other obligations.
(c) A municipality to which Subsection (b) applies is
entitled to receive all funds that an owner of a project may receive
under Section 151.429(h).
Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987.
Amended by Acts 1993, 73rd Leg., ch. 231, § 3, eff. Aug. 30,
1993; Acts 1997, 75th Leg., ch. 165, § 30.274, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 1004, § 2, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 1308, § 4, eff. June 16, 2001; Acts
2001, 77th Leg., ch. 1420, § 8.365, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 209, § 91, eff. Oct. 1, 2003.
§ 351.103. ALLOCATION OF REVENUE: GENERAL
RULE. (a) At least 50 percent of the hotel occupancy tax revenue
collected by a municipality with a population of 200,000 or greater
must be allocated for the purposes provided by Section
351.101(a)(3). For municipalities with a population of less than
200,000, allocations for the purposes provided by Section
351.101(a)(3) are as follows:
(1) if the tax rate in a municipality is not more than
three percent of the cost paid for a room, not less than the amount
of revenue received by the municipality from the tax at a rate of
one-half of one percent of the cost of the room; or
(2) if the tax in a municipality exceeds three percent
of the cost of a room, 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. This subsection does not apply to a municipality,
regardless of population, that before October 1, 1989, adopted an
ordinance providing for the allocation of an amount in excess of 50
percent of the hotel occupancy tax revenue collected by the
municipality for one or more specific purposes provided by Section
351.101(a)(1) until the ordinance is repealed or expires or until
the revenue is no longer used for those specific purposes in an
amount in excess of 50 percent of the tax revenue.
(b) Subsection (a) does not apply to a municipality in a
fiscal year of the municipality if the total amount of hotel
occupancy tax collected by the municipality in the most recent
calendar year that ends at least 90 days before the date the fiscal
year begins exceeds $2 million. A municipality excepted from the
application of Subsection (a) by this subsection shall allocate
hotel occupancy tax revenue by ordinance, consistent with the other
limitations of this section. The portion of the tax revenue
allocated by a municipality with a population of more than 1.6
million for the purposes provided by Section 351.101(a)(3) may not
be less than 23 percent, 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.
(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 having a
population of more than 125,000 may be used for the purposes
provided by Section 351.101(a)(5).
(d) A municipality that does not allocate any hotel
occupancy tax revenue for the purposes provided by Section
351.101(a)(1) may allocate not more than 50 percent of the hotel
occupancy tax revenue collected by the municipality for the
purposes provided by Section 351.101(a)(5). A municipality that
before October 1, 1989, adopts an ordinance providing for the
allocation of an amount in excess of 50 percent of the hotel
occupancy tax revenue collected by the municipality for one or more
specific purposes provided by Section 351.101(a)(5) may allocate
the 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.
(e) A municipality may use hotel occupancy tax revenue
collected by the municipality for a purpose provided by Section
351.101(a)(1) only if the municipality complies with the applicable
provisions of this section.
Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 2, § 14.24(b), eff. Aug. 28,
1989; Acts 1989, 71st Leg., ch. 1110, § 6, eff. Oct. 1, 1989;
Acts 1993, 73rd Leg., ch. 153, § 1, eff. Aug. 30, 1993; Acts
1993, 73rd Leg., ch. 680, § 5, eff. Sept. 1, 1993; Acts 2001,
77th Leg., ch. 1308, § 5, eff. June 16, 2001.
§ 351.1035. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES IN BORDER COUNTIES. (a) This section applies only
to a municipality that is the largest municipality in a county
described by Section 352.002(a)(14).
(b) At least 50 percent of the hotel occupancy tax revenue
collected by a municipality described by Subsection (a) 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 described by Subsection (a) may
be used for the purposes provided by Section 351.101(a)(4).
(d) Not more than 15 percent of the hotel occupancy tax
revenue collected by a municipality described by Subsection (a) may
be used for the purposes provided by Section 351.101(a)(5).
Added by Acts 2003, 78th Leg., ch. 303, § 2, eff. June 18, 2003.
§ 351.104. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES BORDERING BAYS. (a) This section applies only to
a home-rule municipality that borders a bay, that has a population
of less than 80,000, and that is not an eligible coastal
municipality.
(b) In this section:
(1) "Adjacent public land" means land that:
(A) is owned by this state or a local
governmental entity; and
(B) is located adjacent to a bay that is bordered
by a municipality to which this section applies.
(2) "Clean and maintain" means the collection and
removal of litter and debris and the supervision and elimination of
sanitary and safety conditions that would pose a threat to personal
health or safety if not removed or otherwise corrected.
(c) Notwithstanding any other provision of this chapter and
subject to Subsections (d) and (e), a municipality to which this
section applies may use not more than 10 percent of the revenue
derived from the tax imposed under this chapter:
(1) for a purpose described by Section 351.105(a)(1)
or (2);
(2) to clean and maintain adjacent public land; or
(3) to mitigate coastal erosion on adjacent public
land.
(d) A municipality to which this section applies may not
reduce the amount of revenue that it uses for a purpose described by
Section 351.101(a)(3) to an amount that is less than the average
amount of revenue used by the municipality for that purpose during
the 36-month period that precedes the municipality's use of revenue
under Subsection (c).
(e) A municipality that uses revenue from the tax imposed
under this chapter for a purpose provided by this section must spend
the same amount of revenue for the same purpose from a source other
than that tax.
Acts 2003, 78th Leg., ch. 699, § 1, eff. Sept. 1, 2003.
§ 351.105. ALLOCATION OF REVENUE: ELIGIBLE COASTAL
MUNICIPALITIES. (a) An eligible coastal municipality that levies
and collects an occupancy tax authorized by this chapter at a rate
of seven percent shall pledge a portion of the revenue equal to at
least one percent of the cost of a room to either or both of the
following purposes:
(1) the payment of the bonds that the municipality or a
park board of trustees may issue under Section 1504.002(a),
Government Code, or under Chapter 306, Local Government Code, in
order to provide all or part of the funds for the establishment,
acquisition, purchase, construction, improvement, enlargement,
equipment, or repair of public improvements, including parks, civic
centers, civic center buildings, auditoriums, exhibition halls,
coliseums, marinas, cruise ship terminal facilities, hotels,
motels, parking facilities, golf courses, trolley or trolley
transportation systems, and other facilities as may be considered
advisable in connection with these facilities that serve the
purpose of attracting visitors and tourists to the municipality;
or
(2) the maintenance, improvement, or operation of the
parks, civic centers, civic center buildings, auditoriums,
exhibition halls, coliseums, marinas, cruise ship terminal
facilities, hotels, motels, parking facilities, golf courses,
trolley or trolley transportation systems, and other facilities as
may be considered advisable in connection with these facilities
that serve the purpose of attracting visitors and tourists to the
municipality.
(b) If the tax authorized by this chapter is imposed by an
eligible coastal municipality at a rate of four or more percent of
the cost of a room, no lesser amount than the amount of revenue
derived from the application of the tax at a rate of three percent
of the cost of a room shall be used for the purpose provided by
Section 351.101(a)(3).
(c) If the tax authorized by this chapter is imposed by an
eligible coastal municipality at a rate of five or more percent of
the cost of a room, no lesser amount than the amount of revenue
derived from the application of the tax at a rate of one percent
shall be used for beach patrol, lifeguard services, marine water
safety, and park law enforcement.
(d) If the tax authorized by this chapter is imposed by an
eligible coastal municipality at a rate of six or more percent, no
lesser amount than the amount of revenue derived from the
application of the tax at a rate of one percent of the cost of a room
shall be used as matching funds for state funds available to clean
and maintain public beaches and for other public beach-cleaning
funds.
(e) Money received under Section 156.2511 and used to clean
and maintain beaches is included in determining whether the
municipality has met the funding obligation prescribed by
Subsections (c) and (d), and the municipality may credit that money
against the funding requirements prescribed by Subsections (c) and
(d).
(f) An eligible coastal municipality and a park board of
trustees created by the municipality may:
(1) contract for the park board to use the tax
authorized by this chapter as provided by this section; and
(2) without further authorization, use the tax
authorized by this chapter as provided by this section, including
for the purpose of issuing bonds or entering into other agreements.
(g) The following statutes prevail over any conflicting
provision in the charter of an eligible coastal municipality:
(1) this section;
(2) Chapter 306, Local Government Code; and
(3) Subchapter A, Chapter 1504, Government Code.
Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987.
Amended by Acts 1993, 73rd Leg., ch. 680, § 6, eff. Sept. 1,
1993; Acts 1995, 74th Leg., ch. 76, § 15.02, eff. Sept. 1, 1995;
Acts 1995, 74th Leg., ch. 454, § 7, eff. Sept. 1, 1995; Acts
1999, 76th Leg., ch. 298, § 1, eff. May 29, 1999; Acts 2001, 77th
Leg., ch. 1420, § 8.367, eff. Sept. 1, 2001.
§ 351.1055. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES. (a) In this section:
(1) "Clean and maintain" has the meaning assigned by
Section 61.063, Natural Resources Code.
(2) "Public beach" has the meaning assigned by Section
61.001, Natural Resources Code.
(3) "Beach security" means beach patrol, lifeguard
services, marine water safety, and park law enforcement.
(b) Notwithstanding any other provision of this chapter, a
home-rule municipality that borders on the Gulf of Mexico and has a
population of more than 250,000 may use all or any portion of the
revenue derived from the municipal hotel occupancy tax from hotels
in an area previously subject to a county hotel occupancy tax and
located on an island bordering the Gulf of Mexico to clean and
maintain public beaches in the municipality.
(c) Notwithstanding any other provision of this chapter, a
municipality that has a population of less than 5,000 adjacent to a
home-rule city with a population of less than 80,000 may use all or
any portion of the revenue heretofore or hereafter derived from the
municipal hotel tax:
(1) to clean and maintain the beaches in the
municipality;
(2) to provide beach security within the municipality;
(3) for any of the purposes permitted or allowed by
Section 1504.001, Government Code;
(4) for any purpose allowed by Section 351.105; or
(5) to pay the principal of or interest on bonds or
notes issued for any of these purposes.
Added by Acts 1999, 76th Leg., ch. 1359, § 3, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 117, § 1, eff. July 1, 2003;
Acts 2003, 78th Leg., ch. 247, § 1, eff. Sept. 1, 2003.
§ 351.106. ALLOCATION OF REVENUE: POPULOUS
MUNICIPALITIES WITH COUNCIL-MANAGER GOVERNMENT. (a) A
municipality that has a population of 1.18 million or more and that
has adopted a council-manager form of government shall use the
amount of revenue from the tax that is derived from the application
of the tax at a rate of more than four percent of the cost of a room
as follows:
(1) no more than 55 percent to:
(A) constructing, improving, enlarging,
equipping, and repairing the municipality's convention center
complex; or
(B) pledging payment of revenue bonds and revenue
refunding bonds issued under Subchapter A, Chapter 1504, Government
Code, for the municipality's convention center complex; and
(2) at least 45 percent for the purposes provided by
Section 351.101(a)(3).
(b) Revenue received by a municipality described by
Subsection (a) from the application of the tax at a rate of four
percent or less may be used as provided by Section 351.101.
Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 2, § 14.23(b), eff. Aug. 28,
1989; Acts 1991, 72nd Leg., ch. 597, § 108, eff. Sept. 1, 1991;
Acts 2001, 77th Leg., ch. 669, § 123, 124, eff. Sept. 1, 2001;
Acts 2001, 77th Leg., ch. 1420, § 8.368, eff. Sept. 1, 2001.
§ 351.1065. ALLOCATION OF REVENUE: ELIGIBLE CENTRAL
MUNICIPALITY. (a) An eligible central municipality shall use the
amount of revenue from the tax that is derived from the application
of the tax at a rate of more than seven percent of the cost of a room
only for:
(1) the construction of an expansion of an existing
convention center facility; and
(2) pledging payment of revenue bonds and revenue
refunding bonds issued under Subchapter A, Chapter 1504, Government
Code, for the construction of the expansion.
(b) Any interest income derived from the application of the
tax at a rate of more than seven percent of the cost of a room may be
used only for the purposes provided by this section.
(c) An eligible central municipality expending tax revenue
under this section shall attempt to include minority-owned
businesses in the issuance of at least 32 percent of the total
dollar value of the bonds issued, and in at least 32 percent of the
total fees paid by the issuer, in connection with the construction.
Added by Acts 1993, 73rd Leg., ch. 620, § 3, eff. Aug. 30, 1993.
Amended by Acts 2001, 77th Leg., ch. 1420, § 8.369, eff. Sept. 1,
2001.
§ 351.107. ALLOCATION OF REVENUE; CERTAIN LARGE COASTAL
MUNICIPALITIES. (a) This section applies only to a municipality
that borders on the Gulf of Mexico and has a population of more than
250,000.
(b) A municipality to which this section applies shall
separately account for all revenue derived from the application of
the tax imposed by this chapter at a rate of more than seven percent
of the cost of a room.
(c) Subject to Subsection (e), revenue described by
Subsection (b) may be used only for:
(1) acquiring land for a municipally owned convention
center;
(2) constructing, improving, enlarging, equipping,
repairing, operating, and maintaining a municipally owned
convention center; and
(3) paying bonds used to finance activities described
by Subdivision (1) or (2).
(d) For the purpose of the allocation of revenue under
Section 351.103, revenue described by Subsection (b) is not
counted.
(e) Notwithstanding any other provision of this chapter, a
municipality to which this section applies may use all or any
portion of the revenue derived from the municipal hotel occupancy
tax from hotels in an area previously subject to a county hotel
occupancy tax and located on an island bordering the Gulf of Mexico
to clean and maintain public beaches in the municipality.
(f) In this section:
(1) "Clean and maintain" has the meaning assigned by
Section 61.063, Natural Resources Code.
(2) "Public beach" has the meaning assigned by Section
61.001, Natural Resources Code.
Added by Acts 1999, 76th Leg., ch. 825, § 2, eff. June 18, 1999.
Amended by Acts 2003, 78th Leg., ch. 117, § 2, eff. July 1, 2003.
§ 351.1075. ALLOCATION OF REVENUE: CERTAIN GENERAL-LAW
COASTAL MUNICIPALITIES.
Text of section effective until January 1, 2006
(a) A general-law municipality that borders on the Gulf of
Mexico and has a boundary that is within 30 miles of Mexico may use
revenue derived from a rate increase under Section 351.003(d),
including any interest earned on that revenue, only for
beautifying, and improving the access to and safety of, the portion
of State Highway 100 known as Padre Boulevard.
(b) The amount of revenue that a municipality uses for a
purpose described by Subsection (a) may not exceed the amount the
municipality spends for the same purpose from a source other than a
tax imposed under this chapter.
Added by Acts 2003, 78th Leg., ch. 382, § 2, eff. June 18, 2003.
§ 351.108. RECORDS. (a) A municipality shall maintain
a record that accurately identifies the receipt and expenditure of
all revenue derived from the tax imposed under this chapter.
(b) A municipality or entity that spends revenue derived
from the tax imposed under this chapter shall, before making an
expenditure, specify in a list each scheduled activity, program, or
event that:
(1) is directly funded by the tax or has its
administrative costs funded in whole or in part by the tax; and
(2) is directly enhancing and promoting tourism and
the convention and hotel industry.
(c) If a municipality delegates to another entity the
management or supervision of an activity or event funded by the tax
imposed under this chapter, each entity that is ultimately funded
by the tax shall, before making an expenditure, specify in a list
each scheduled activity, program, or event that:
(1) is directly funded by the tax or has its
administrative costs funded in whole or in part by the tax; and
(2) is directly enhancing and promoting tourism and
the convention and hotel industry.
(d) The list required in Subsections (b) and (c) should be
provided to the office of the city secretary or to the city
secretary's designee.
(e) Subsections (b) and (c) do not prevent a municipality or
funded entity from subsequently adding an activity, program, or
event to the list required by those subsections if the activity,
program, or event is directly enhancing and promoting tourism and
the convention and hotel industry.
(f) This section does not prevent a municipality or entity
receiving revenue from the tax imposed under this chapter from
setting aside tax revenue in a designated reserve fund for use in
supporting planned activities, future events, and facility
improvements that are directly enhancing and promoting tourism and
the convention and hotel industry.
(g) Subsections (b) and (c) do not apply if the funded
entity already provides written information to the municipality
that indicates which scheduled activities, programs, or events
offered by the entity are directly enhancing and promoting tourism
and the convention and hotel industry.
(h) Subsections (b) and (c) do not affect the level of local
hotel occupancy tax funding that was approved at an election held
pursuant to the initiative and referendum provisions of a city
charter, and do not prohibit the use of local hotel occupancy tax
for the encouragement, promotion, improvement, and application of
the arts or for historical restoration and preservation as
otherwise provided by this chapter.
Added by Acts 1999, 76th Leg., ch. 495, § 2, eff. Sept. 1, 1999;
Acts 1999, 76th Leg., ch. 1467, § 2.73, eff. Oct. 1, 1999.
Renumbered from § 351.107 and amended by Acts 2001, 77th Leg.,
ch. 636, § 1, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1420,
§ 21.001(101), eff. Sept. 1, 2001.
