S.B. No. 696
 
 
 
 
AN ACT
  relating to authorizing certain counties to impose a hotel
  occupancy tax, the applicability and rates of that tax in certain
  counties, and the use of revenue from that tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 352.002, Tax Code, is amended by
  amending Subsection (d) and adding Subsections (bb) and (dd) to
  read as follows:
         (d)  The tax imposed by a county authorized by Subsection
  (a)(6) [(a)(4), (6)], (8), (9), (10), (11), (14), (15), (17), (19),
  (20), (21), (23), or (29) to impose the tax does not apply to a hotel
  located in a municipality that imposes a tax under Chapter 351
  applicable to the hotel.  This subsection does not apply to:
               (1)  a county authorized by Subsection (a)(6) to impose
  the tax that:
                     (A)  has a population of less than 40,000 and
  adjoins the most populous county in this state; or
                     (B)  has a population of more than 200,000 and
  borders the Neches River; or
               (2)  a county authorized by Subsection (a)(9) to impose
  the tax that has a population of more than 9,000.
         (bb)  The commissioners court of a county with a population
  of less than 60,000 in which an annual strawberry festival is held
  in a location that is not the county seat of the county may impose a
  tax as provided by Subsection (a).
         (dd)  The commissioners court of a county with a population
  of not more than 40,000 that borders the Red River and includes a
  wildlife management area may impose a tax as provided by Subsection
  (a). A tax imposed under this subsection does not apply to a hotel
  located in a municipality that imposes a tax under Chapter 351
  applicable to the hotel.
         SECTION 2.  Section 352.003, Tax Code, is amended by adding
  Subsections (y) and (z) to read as follows:
         (y)  The tax rate in a county authorized to impose the tax
  under Section 352.002(a)(4) may not exceed two percent of the price
  paid for a room in a hotel.
         (z)  The tax rate in a county authorized to impose the tax
  under Section 352.002(bb) may not exceed two percent of the price
  paid for a room in a hotel.
         SECTION 3.  Subchapter B, Chapter 352, Tax Code, is amended
  by adding Sections 352.112 and 352.114 to read as follows:
         Sec. 352.112.  USE OF REVENUE: CERTAIN COUNTIES HOLDING AN
  ANNUAL STRAWBERRY FESTIVAL. The revenue from a tax imposed under
  this chapter by a county authorized to impose the tax under Section
  352.002(bb) may be used only for the construction, enlarging,
  equipping, improvement, maintenance, repairing, and operation of a
  civic center with an arena used for rodeos, livestock shows, and
  agricultural expositions to substantially enhance hotel activity
  and encourage tourism.
         Sec. 352.114.  USE OF REVENUE: CERTAIN COUNTIES CONTAINING
  AN INDIAN RESERVATION.  (a)  In addition to the purposes authorized
  by this chapter, the revenue from a tax imposed under this chapter
  by a county authorized to impose the tax under Section
  352.002(a)(4) may be used to make repairs and improvements to the
  county airport or to provide reimbursement for repairs and
  improvements to the airport.
         (b)  A county to which this section applies may not use
  revenue from a tax imposed under this chapter for a purpose
  described by Subsection (a) in a total amount that would exceed the
  amount of hotel revenue in the county that is likely to be
  reasonably attributable to guests traveling through the airport
  during the 15-year period beginning on the date the county first
  uses the tax revenue for that purpose.
         (c)  A county to which this section applies may not use
  revenue from a tax imposed under this chapter for a purpose
  described by Subsection (a) after the 10th anniversary of the date
  the county first uses the revenue for that purpose.
         SECTION 4.  This Act takes effect September 1, 2021.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 696 passed the Senate on             
  April 29, 2021, by the following vote:  Yeas 27, Nays 3, one
  present not voting; May 25, 2021, Senate refused to concur in House
  amendments and requested appointment of Conference Committee;             
  May 27, 2021, House granted request of the Senate; May 30, 2021,
  Senate adopted Conference Committee Report by the following
  vote:  Yeas 26, Nays 4, one present not voting.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 696 passed the House, with
  amendments, on May 13, 2021, by the following vote:  Yeas 93,
  Nays 52, one present not voting; May 27, 2021, House granted
  request of the Senate for appointment of Conference Committee;              
  May 30, 2021, House adopted Conference Committee Report by the
  following vote:  Yeas 83, Nays 57, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor