Texas Tax Code

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 (Tax Authorized)(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 (Use of Tax Revenue)(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 (Use of Tax Revenue)(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 (Use of Tax Revenue)(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 (Use of Tax Revenue)(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.
Added by Acts 2017, 85th Leg., R.S., Ch. 321 (H.B. 1494), Sec. 1, eff. June 1, 2017.
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Last accessed
Jun. 7, 2021