85R23373 CJC-D     By: Morrison H.B. No. 1494       A BILL TO BE ENTITLED   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.  Subchapter B, Chapter 351, Tax Code, is amended   by adding Section 351.1075 to read as follows:          Sec. 351.1075.  ALLOCATION OF REVENUE FOR THE ARTS BY   CERTAIN MUNICIPALITIES. (a) This section applies only to a   municipality:                (1)  a portion of which is designated as a cultural arts   district; and                (2)  that is the county seat of a county:                      (A)  described by Section 352.002(a)(6);                      (B)  with a population of less than 50,000; and                      (C)  that includes a state park and a national   wildlife refuge.          (b)  Notwithstanding any other provision of this chapter and   subject to Subsection (c)(1), a municipality to which this section   applies may use not more than 30 percent of the revenue derived from   the municipal hotel occupancy tax for the purposes provided by   Section 351.101(a)(4).          (c)  A municipality to which this section applies that spends   more than 15 percent of the hotel occupancy tax revenue collected by   the municipality in a fiscal year for the purposes provided by   Section 351.101(a)(4):                (1)  may not in that fiscal year reduce the percentage   of hotel occupancy tax revenue that the municipality spends for the   purposes described by Section 351.101(a)(3) to a percentage that is   less than the average percentage of hotel occupancy tax revenue   spent by the municipality for those purposes during the 36-month   period preceding that fiscal year; and                (2)  shall determine for that fiscal year:                      (A)  the increase in the amount of hotel revenue   that is attributable to that expenditure; and                      (B)  the total amount of hotel occupancy tax   revenue spent by the municipality for the purposes provided by   Section 351.101(a)(4).          (d)  If the amount of money determined under Subsection   (c)(2)(A) is less than the amount of money determined under   Subsection (c)(2)(B), the municipality shall reimburse the   municipality's hotel occupancy tax revenue fund from the   municipality's general fund an amount equal to 50 percent of the   difference between those determined amounts.          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.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2017.