Office of House Bill AnalysisH.B. 1886
By: Coleman
Ways & Means


Prior law allowed a hotel occupancy tax to be collected by certain
municipalities with tax rate ceilings set according to population. Prior to
the 77th Legislature, an "eligible municipality" was defined as a
municipality with a population of at least 1,200,000 and that had adopted
by ordinance a capital improvement plan for convention and exposition
facilities for the municipality.  At the time, there were no longer any
cities in the state that fit the definition of an  "eligible municipality."
However, language relating to such municipalities still remained in the
law, leading to some confusion.  House Bill 1886 removes the definition of
"eligible municipality" and modifies the definition of  "eligible central


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. 


House Bill 1886 amends the Tax Code relating to the collection of municipal
hotel occupancy taxes to remove the definition of  "eligible municipality,"
and to modify the  definition of  "eligible central municipality" to mean a
municipality with a population of more than 440,000 but less than 1.5
million located in a county with a population of one million or more and
that adopted a capital improvement plan for the expansion of an existing
convention center facility (Sec. 351.001).  The bill provides that the
portion of the tax revenue allocated for advertising and promotional
purposes by a municipality with a population of more than 1.6 million may
not be less than 23 percent, rather than may not exceed 75 percent, except
that the allocation is subject to and may not impair the authority of the
municipality to pledge all or any portion of that tax revenue to the
payment of bonds or spend all or any portion of that tax revenue for the
payment of operation and maintenance expenses of convention center
facilities (Sec. 351.103). 

The bill removes provisions relating to an  "eligible municipality."


June 16, 2001.