HBA-JRA S.B. 1508 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1508 By: Truan Ways & Means 5/3/1999 Engrossed BACKGROUND AND PURPOSE Currently, the city of Corpus Christi enforces a municipal hotel occupancy tax at a rate of no more than seven percent of the room price. The city would like to expand its convention center. S.B. 1508 raises the limit on the municipal hotel occupancy tax rate to nine percent and specifies that this tax be used to improve the city's convention center. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 351.003, Tax Code, by adding Subsection (d), as follows: (d) Prohibits the rate of a municipal hotel occupancy tax in a municipality that borders on the Gulf of Mexico and has a population of more than 250,000 from exceeding nine percent of the price paid for a room. SECTION 2. Amends Subchapter B, Chapter 352, Tax Code, by adding Section 352.109, as follows: Sec. 352.109. USE OF REVENUE; CERTAIN LARGE COASTAL MUNICIPALITIES. (a) Provides that this section applies only to a municipality that borders on the Gulf of Mexico and has a population of more than 250,000. (b) Requires a municipality to which this section applies to 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) Authorizes revenue described by Subsection (b) to be used only for acquiring land for a municipally-owned convention center; constructing, improving, enlarging, equipping, repairing, operating, and maintaining a municipally-owned convention center; and paying bonds used to finance such activities. (d) Provides that revenue described by Subsection (b) is not counted for the purpose of the allocation of revenue under Section 351.103 (Allocation of Revenue; General Rule), Tax Code. SECTION 3. Makes application of this Act prospective. SECTION 4.Emergency clause. Effective date: upon passage.