HomeMy WebLinkAboutHOTEL MOTEL OCCUPANCY TAX - FY 1989-90
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CITY of DENTON, TEXAS MUNICIPAL BUILDING DENTON, TEXAS 76101 TELEPHONE (817) 566.8200
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July 9, 1990
Jo Ann ballentine
Denton Convention ana Visitors Bureau
414 Pawa
Denton,kTexas 76201
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Dear lis. dallentine:
On July 31, 19909 tae Denton City Council will hold a
xorksession on the Proposed 1990-91 Budget at City Hall. As a
recipient of Lalor funds (Giotel/wotel tax revenue), your agency
is requested to present its budget for the 1990-91 fiscal year.
fhe presentations will begin at 6:00 p.n. and each agency snould
be be prepared to give a brief fifteen minute budget s
i presentation. j
As back-up in for the July 31 meeting, please submit
your proposed 1990-91 budget and a copy of your latest Audit to i
the City Secretary's office in City Hall by Wednesday, July 25.
We look forward to seeing you on Tuesday, July 31, aitd
appreciate your cooperation in providi►ag the back-up materials.
Please contact my office as quickly as possible if there is a
problem with providing the information requested.
Sincerely,
?4ohnnFF. McGrane
xecutive Director of finance
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J F M c G : a f
4824F
cc: Lloyd Y. Harreil, City Manager
Jennifer Walters, City Secretary
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CITY of ORNTON, rff"S 215 E. MCK1NNEyl DENTON, TEXAS 76201 / TELEPHONE (817) 568.8200
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July 9, 1990
Mr. Leon Cailinan, Chairperson
Denton County Historical Coamission
325 Easy Street '
Little Elm, Texas 7SO68
Dear Ar. Callihan:
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On July 3i, 1990, the Denton City Council will hold a !
worksession on the Proposed 1990-91 Budget at City Hall. As a
recipient of Lalor Funds (notel/motel tax revenuel, your agency
is requested to present its budget for the 1990-91 fiscal year. t
The presentations will begin at 6:00 p.m. and each agency snould
be be prepared to give a brief fifteen minute budget
i
presentation.
As bacK-up information for the July 31 meeting, please submit
your proposed 1990-91 budget and a copy of your latest audit to k
the City Secretary's office in City Hall by Wednesday, July 25.
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We look forward to seeing you on Tuesday, July 31, and ~
appreciate your cooperation in providing the back-up materials.
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Please contact Lay office as quickly as possible if there is a
proulem witii providing the information requested.
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Sincerely
S
?txeconn f. LdcGrane
utive Director of finance
JFMCG:af
4824:
cc: Lloyd V. Harrell, City Manager
Jennifer Walters, City Secretary
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CITY of DENTON, TEXAS MUNICIPAL BUILDING DENTON, TEXAS 76201 TELEPHONE (817) 5.820
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July 9, 1990 •
Mr. James Roden
North Texas Fair Association
2217 N. Carroll Blvd.
Denton, Texas 76201
Dear Mr. Roden:
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0,► July 51, 199U, the Denton City Councii will hold a
worksession on the Proposed 199U-91 Budget at City Hall. As a
recipient of Lalor Funds (hotel/uotel tax revenue), your agency
is requested to present its budget for the 1990-91 fiscal year.
me presentations will begin at 6:UU p,m, and each agency should
be be prepared to give a brief fifteen minute budget
presentation.
As back-up information for the Juiy 31 meeting, please submit
your proposed 1990-91 budget and a copy of your latest audit to
the City Secretary's office in City hall Dy wednesday, July 25.
We look forward to seeing you on Tuesday, July 31, and y
appreciate your cooperation in providing the oack-up materials.
Please contact my office as quickly as possible if there is a
problem with providing the information requested.
incerely,
ohn F. McUrane
Executive Director of finance
JfmcG:af
4824F
cc: Lloyd V. Harrell, City manager
Jennifer Walters, City Secretary
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C1TY of omroM, rmus 215 E. McKfNNEYI DENTON, TEXAS 762011 TELEPHONE (811)56&8200
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July 9, 1990
Ms. Clota G. Vaughan
Chairperson, Board of Trustees
i Denton County Historical Museum, lac.
2160 Savannah Trail I ,
Denton, Texas 7620S
Dear Ms. Vaughan:
On July 319 19909 the Denton City Council will hold a 1
worksession on the Proposed 1990-91 Budget at City Hall. As a
recipient of Lalor funds (hotel/motel tax revenue), your agency
is requested to present its budget fox the 1990-91 fiscal year.
minuteagency bshould
The presentations will
begin give a s 6bOrief m.fifand t en each
udget '
b3 prepared to g
presentation. I
As back-up information for the July 31 meeting, please submit
your proposed 1990-91 budget and a copy of your latest audit to
the City Secretary's office in City Hall by Wednesday, July 2S.
We look appreciate forward rcooperation seeing pryou on oviding thes pack- p materials.
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Please contact my office as quickly as possible if there is a
problem with providing the information requested.
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Sincerely i
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John F. McGrane
Executive Director of Finance
JFMcG:af f
4824F
cc: Lloyd V. Harrell, City Manager
Jennifer Walters, City Secretary
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C/TY of DENTON, TEXAS 215 E. McKINNEY/ DENTON, TEXAS 76201 / TELEPHONE (817) 566-M
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July 9, 1990
{ Mr. Herbert Holl
I Greater Denton Arts Council
400 E. Hickory
Denton, Texas 76201
Dear Mr. Holl:
On July 31, 1990, the Denton City Council will hold a '
worksession on the Proposed 1990-91 Budget at City hall. As a i
recipient of Lalor Funds (hotel/motel tax revenue), your agency
Is requested to present its budget for the 1990-91 fiscal year.
'fhe presentations will begin at 6:00 p.m. and each agency should
be be prepared to give a brief fifteen minute budget
presentation.
As back-up inforaation for the July 31 meeting, please submit
your proposed 1990-91 budget and a copy of your latest audit to
the City Secretary's office in City [fall by Wednesday, July 2S.
II We look forward to seeing you on Tuesday, July 3i, and
appreciate your cooperation in providing the back-up materials.
Please contact my office as quickly as possible if there is a
r problem with providing the inforwation requested.
Sincerely Q~
0
0hn F. McGrane
Executive Director of tinance
JFMcG:af
4824F
cc: Lloyd V. Harrell, City Manager
Jennifer Walters, City Secretary
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D Lri~HO OFFICpF, DAVID W- BILES
y~(~ LAW F.
L P.O.1H)\ Wfl
2 1990
I~ DFNTON. TEXAS 7940'
r['~Y OF UE`1` H ~
CITY „4WAGEft 01FICE Nil 56644
March 2, 1990
Debra Adami Drayovitch
City Attorney
Municipal Building
215 FastMcKinney
Denton, Xas 76201
Re: Hotel Tax Contracts
Debra: zt was my impression that
time, hopefully the last. yesterday morning
one more eed on in our conference of the revisions we agr
resulted in a contract^ h ch we could both advise o~ir clients a cts- able in all resp made:
f accept
the changes now
` Therefore, Z am summarizing rovides protection
N new ! a iii) is added which P ctive dollar
(1) 1.2 of the same respe
for the recipient organizations City reduces the tax rate from 6% as
event that the 6ths if the tax rate is
amounts in the ,fill receive 3/;), r
6; (i.e., the Chamber ' tax rate is at
JE compared to 3/7ths while the
2) 411.2 (a)(iii) is changed to del'ate the reference to a tax
rate at 7%. to the budget, is renumbered
The present 13.1, b rtaining which new provision states
(3) is added, nd funds as set forth in
as 13.1 (a) and a new 1anization must exile
that the recipient org the City-
i et that is approved by
the I
~ budget "reasonable advance written
(4) 13.3 is changed by deleting Council and the finance
notice" and adding "designQe" to the City
Director. "itemize" for
changed by substituting "expenditures", !3.4 is word "list" bef rem the wor
tractsof 6 months
"summarize", adding iring copies
and adding 9 Provision r ided to the City'
or more in length to be p erformance of t
option to assume the recipient i
(6) References to the city's reimbursir the event
contracts as an alternative to obligations (in b) 14vent now
contract of
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organizations for 4,2 and 4.3(•
deleted from
termination) have been
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"shall" reimburse the recipient
the city N
provides that
organizations for contractual obligations subject to the dollar
maximum for each respective organization.
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(7) 14,4, which provided that the City would indemnify the
recipient organization i is slim Hatt t such indemnification ais ~he City *+~rform3IIGr; of a contract, will no longer assume any performance
not necessary since the City will only reimburse the recipient
obligations the City 1
organizations in dollars, subject to the maximua.
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and the universal language
(8) 14 5 is renumbered as 14.4,
"of whatever kind or character, in tort or contract" is deleted.
eneral form, in
(9) 15.2 (a) is returned to its previous g but now the
that either party can terminate days' notice contract, (6 mos.).
terminating party must give 18o day 1 ,
(iii) is changed by allowing a breaching party
(10) 15.2(b)- rather than coamencing
only 30 days in which to cure the default cure in 45 days, a net 1
curative action within 30 and completing the
loss of 15 days to fix the broken wheel. }
to discuss
you again desire changes and wish sthem hall
please be so kind as to dro=e ee ltoteaddressz them Otherwisrief
review your letter and p Par March 7.
conference on the morning of Wednesday, ;
shall advise my respective clients that o erninq boardss enandsto
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should be approved by their respective g in.
provision should questions be raised aga
stand fast on each reement has been
your cooperation in reaching this a9
appreciated. 1
Si ere~l
David H. Giles
DWH:cc
encl(s) j
cc: Lloyd Harrell
Denton chamber of Commerce
Greater Denton Arts council
Denton County Historical Museum
Denton County Historical Foundation
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LA-%v OFFICE OF DAVID W. BILES
3I9 W. HICKORY. ~V ITZ 490 l
A.O. BOX 949 1
DE.\TON.7E][AS :61209 fr r1
re I 7o 366.0566 1~-
March 1, 1990 ~W
Debra Adami Drayovitch a1Y~kr~y 1
City Attorney a
Municipal Building
215 East McKinney
Denton, Texas 76201
Re: Hotel Tax Contracts
Debra:
I have again prepared drafts of proposed contracts for all
five hotel tax revenue recipients, the Denton Chamber of Commerce,
the Greater Denton Arts Council, the Denton County Historical j
Museum, and the Denton County Historical Foundation. !
I met with representatives of each organization yesterday
afternoon and thoroughly reviewed the proposed contracts as drafted
by your office and the proposed contracts as drafted by me. I also
disclosed the results of discussions between you and me.
Therefore, I have again prepared a draft of proposed contracts ! 1
for each organization based upon my discussion with you and my j
discussion with the organization representatives. I enclose copies r
of each for your review.
!
Please note the following changes:
(1) all contracts commence April 1, 1990 this means that the r
City shall retain a portion of hotel tax revenue from the Chamber,
Museum, and Historical Foundation portions some 3 months sooner
than was originally proposed in your contracts. i
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(2) "Base payment amounts" are expressed in terms of sevenths of
the hotel tax revenue (i.e., the Chamber receives 3/7ths, GDAC ,
receives 1/7th under its primary contract and 1/7th for the Steam
Plant, the Museum receives 88/100ths of 1/7th, and the Foundation
receives 12/100ths of 1/7th. "Base payment amounts" is better
defined to reflect the payment after deductions for outside
attorney's and auditor's fees and court costs and costs of
litigation and auditing.
(3) "Hotel Tax Revenue" is better defined to include repayment of
attorney's and auditor's fees, court costs, costs of litigation and
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auditing as paid by taxpayers, but specifically does not include
interest and penalties collected.
(4) Contract reimbursement caps have been changed to $10,000 for
the Chamber, $5,000 for GDAC, $2,000 for the Museum, $1,000 for the
Foundation, and only those contract obligations that are payabl
for the period in which the contract regarding the Steam Plant is
terminated (zero paid for obligations beyond the period in which
the contract is terminated).
(5) Notice of meetincs of the Boards of Directors of each
organization shall be given to t:ie City Manager in the same manner 1
and at the same time as notices fsugsuch gest meetings are given to
members of such boards, as per your
(6) 15.2(a) has been changed to provide that the contracts mutu al
terminated prior to the end of the contract only by
agreement of the parties; each organization interpreted your
contract to require advance notice of the end of he tie n of the of
contract, which is not necessary since each party will aware
the end of the contract term; further, each organization has grave
concerns that the City will terminate the contract without any
reason, without cause, at the whim of the City which would be I
patently unfair however unrealistic such prospect may be.
with you at 10:00 a.m. this morning to I
I shall be meeting
y review this latest draft. Hopefully we can put this to bad this
morning.
Si c1le ly, }
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David W. Biles
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DWB:cc
cc: Floyd Harrell }
Denton Chamber of Commerce
Greater Denton Arts Council
Denton County Historical Museum j
Denton County Historical Foundation {
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WrYofDENTON,TEXAS MUNICIPAL BUILDING / DENTON, TEXAS76201 / TELEPHONE(817)566.8200
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February 20, 1990 Office of City Attorney
Westbrook Denton Hotel Partners, Inc.
Attn: Mr. Howard Maybury
2901 West Airport Freeway
Irving, Texas 75026
Re: Quarterly Hotel Occupancy Tax
Holiday Inn
1500 Dallas Drive
Denton, Texas 76201
Dear Mr. Maybury:
This office has been informed that the quarterly hotel occupancy tax
(Fourth Quarter ending December 31 1989) for the above-referenced hotel
has not been received by the finance department of the City of Denton.
The amount of tax due is $15,514.09 and payment of said amount was
required by January 31, 1990.
j This quarterly tax payment is required to be made upon submission of
the tax report in accordance with Section 23-4 of the Code of
Ordinances. Furthermore, in accordance with Section 23-6 of said
ordinance, it is a criminal offense to fail to timely pay said tax.
Additionally, Article 1269]-4.1, Sec. 3 h (Vernon's Revised Civil
statutes) provides this office is authorized to bring suit to collect
the tax and to enjoin the operation of the hotel facility until such
tax is paid.
Therefore, unless such tax payment is remitted within ten (10) days of
the date of this letter, this office will take action as provided by
law to collect this sum. Continued failure to remit this amount of tax
dues may result in legal action without further notice.
Sincerely,~~
Tanya Cooper
Assistant City Attorney
TC:js
xc: Lloyd V. Harrell, City Manager
John McGrane, Executive Director of Finance
Jim Bunyard, Treasurer
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fat 512 a80.0773
$12 171 29'?8
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VWX mow ~ 900 Congress A,e, Sum 310 A.Khn, Texas 78701
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February 15, 1990
FF720
Mr. Lloyd Harrell
CIiYMrJ;h,iFSpffirc
} Manager
City of Denton
215 East McKinney
Denton, Texas 76201
s Dear Mr. Harrell: in the future, be
rumored that hoteVmotel tax funds may,
it has been parking lot of the Denton Civic Center
used to repair the roof and Building.
As 1 understand it, the Civic Center uosff t 0 ocationsufor te'sb very
your city recreation department as one
I further understand that control o
impressive roster of programs. f ace for events, is exclusively
space, by which I mean reserving space
under the control of the recreation dep
ll. ithAY ou a my former opinhastier
ion
L have toured Denton's Civic: Cen`emuMr'sharaew
itable, in fact, that
and present convention planner.
that the Denton Civic Center is most unsu B the
t it. nsl) (By
Quite
i. Denton Convention and Vis it lust Bureau can't handleeconventio
way, 119.x• the building, but spent on Your
convention '
apart from whether or not room tax dollars should be civic center, t believe that your city deserves a JS+31 of Denton to reserve some
for a
seater. I would like to encourage the City
of the room tax funds to c study would advise YOU regarding:
convention center. Such a study
# ) Potential a <hibit hall size.
(1
(2,) Number of meetg space rooms.
needed.
(3,) Amount of barque king) required.
(4.) Amount of land (including par
(5.) Market potential.
(g.) Economic impact on City of Denton.
(7,) Et cetera.
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Mr. Lloyd Harrell - 1
February 15, 1990
Page Two ,
if you have an interest in pursuing this line of thought, feel free to
call me. TH&MA has a roster of firms with experience in conducting
feasibility studies for cities like Denton with respect to convention
facilities. I'll be happy to share that list with you.
Sincerely,
Donald L. Hansen, CHA
Executive Vice President {
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OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: Mayor and Members of the City Council
FROM, Joe D. Morris, Assistant City Attorney
SUBJECT: Amendments to the Hotel Occupancy Tax Statute
DATE: July 28, 1989
House Bill No. 1023, as enacted by the 71st Legislative
i` Session, amends certain provisions of Chapter 351 of the Tax Code,
which provides for municipal hotel occupancy taxes. A copy of the
Bill is attached. Although the Bill is lengthy and extensively
amends Chapter 351, many of those provisions do not apply to the
1 City of Denton. We have attached a "spliced" copy of Chapter 351
P of the Tax Code, which reflects how the provisions of that chapter
will read, as amended, after omitting many provisions of the
existing statute and the amendments which would not apply to the
City. We have also marked parts of the provisions left in which
do not apply to the City. House Bill 1023 is effective October 1,
` 1989.
} As the Bill applies to the City, the substantive amendments ,
may be summarized as follows: ;
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+ 1. Amends Sec. 351.C04(a) to specify that a municipal
j attorney has the authority to collect the tax imposed.
2. Amends Sec. 351.101(5) b expanding `
t for which hotel taxes may pr used so s to i purposes
nclude promotional
programs to attract tourists and conventions to historic
sites. ,
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3. Amends Sec. 351.101 by adding provisions requiring
contracts and budgeting and reporting requirements for
programs not administered by a city and placing certain
restrictions on the administrative and supporting
activities that may be financed by the use of hotel tax
revenues. These new requirements include the following:
(a) The City Council is specifically authorized to delegate
to a private person or entity or another governmental
entity the management of programs funded by the hotel
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tax. A city may not delegate to any person the
management of its convention and visitors program
other than by contract. [Sec. 351.101 (c)].
(b) Where a city delegates the management of a program to a
private person, the city must approve in writing in
advance the annual program budget. The person must
maintain complete financial records on all hotel tax
expenditures which shall, upon request, be available for
review by the city. A city must require the person to
make periodic reports at least annually to the council
on those expenditures. All hotel tax revenues paid to
the person must be kept in a separate account. (Sec.
351.101(c) and (e)].
(c) Hotel tax revenues may be spent for day-to-day operations
and administrative costs if those costs are "incurred
directly" in carrying out the promotion and servicing of
the purposes for which the taxes are authorized to be
spent. If the city or private party administering a
program using hotel tax revenue also administers other
programs for which hotel tax revenues cannot be used, the
administrative costs for the authorized activities may
not exceed the actual costs incurred in conducting the
authorized-activities. [Sec. 351.101(f)].
(d) Hotel tax revenues may not be spent for travel expenses
of a person for activities not related to the person's
performance of an authorized hotel tax activity. [Sec.
351.101(f)). +
(e) Any person or organization receiving hotel tax revenues
may make a "subgrant" to another person or organization
s by contract, but the subgrantes oust at least annually
t report to the council the expenditures made and make its
financial records available for inspection. [Sec.
351.101(1)].
4. Amendments to Sec. 351.103, which presently provides for "
certain restrictions in the allocation of hotel taxes for the
uses authorized by Sec. 351.101, has two provisions which have
applicability to the city:
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(a) Sec. 351.103 presently restricts the amount that may be
used for the promotion of the arts as authorized by
351.101(a)(4) to no more than the revenue received by a
one percent hotel tax. The restriction is amending by
providing that the amount used for promotion of the arts
shall not exceed fifteen percent of the revenue collected
from the hotel tax, or the present one percent
limitation, whichever is greater. (Sec. 351.103(c).
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(b) Sec. 351.103 is amended to provide that if a city does
not allocate any hotel tax revenues for convention center
facilities as authorized by Section 351.101(x)(1), it may
allocate not more than fifty percent of the hotel tax
revenue for historic preservation, restoration, or
promotional purposes, as authorized by 351.101(a)(5).
There is one exception to that limitation. It allows a
city to allocate more than 50 percent for historic
purposes if it had a contract making the allocation prior
to October 10 1989, and it may continue to do so long as
that contract remains in effect or the revenues are used
for that purpose. (Sec. 351.103(d)).
As you are aware, the City's present seven percent (74) hotel
occupancy tax revenues are allocated by contract to the Denton
Chamber of Commerce (three percent), the North Texas Fair
Association (one ;)ercent), and the Denton Cultural Confederation
(three percent), copies of which are attached.
In light of the considerable number of amendments to the
statute over the last few years and the many amendments made by
H.B. 1023, we will address whether or not present funding contracts
E will be in compliance with the statute, as amended, and if not, our
recommendations of changes to insure compliance. In doing so, we j
will analyze the funding contracts in reference to the three
general subject matter categories of Chapter 351, as amended: (1)
the authorized uses of the hotel tax revenues; (2) the allocation
requirements; and (3) the budgeting and reporting requirements and
spending restrictions.
I. Authorized Uses of Hotel Occupancy Tax Revenues.
A. The Chamber of commerce contract. This contract provides
that in consideration of receiving hotel tax revenues, the Chamber
r` will use its best efforts for general promotional and
tourist advertising . . . and conducting solicitation and operating
programs to contract conventions and visitors, including the
establishment and operation by Chamber of a convention and visitors
bureau." The contract sufficiently tracks the language of section
351.101 (a)(3), so as to be in compliance with the statutory
purpose.
B. The Fair Association Contract. This contract provides
that in consideration of receiving hotel tax revenues, the
Association will use its best efforts for general
promotional and tourist advertising and conducting a
solicitation and operating programs to attract meetings and
conventions." The contract sufficiently tracks the language of
section 351.101 (a)(3), so as to be in compliance with the
statutory purpose.
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t This contract
c. t in considerat ion of receiving
" its best efforts for
provides that the Confederation: l
of the arts
hotel tax revenues, will improvement, use provement, and app l
encouragement, promotion, City of Denton
federation Of an
and historical preservation and rep to Oration peration by nconthe
including the establishment The contract also provides that lete
office for such purposes. cifically used to comp
third of the tax revenues shall be spe
restoration of the "old City Warehouse and old City Steam plant .
The contract sufficiently tracks the language of section 351.101
(a)(4) and (5), so as to be in compliance with the statutory
purpose. {
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I1. Allocation of the Hotel occupancy Tax.
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A. Ul chambr of Com to Cor ct• This contract aluopoSes
three percent (3t)eof the hotel tax to the Chamber
ref or the p% of The cont allocation authorized by section a)(3 complies with the provisions
the Chamber of an three e percent of section 351.103, as amended.
ine rair sa6OCiation Contr This contract allocates
B' of the hotel tax to the Association for the
one percent (1t) section 351.101 (a) (3)• This allocation
purposes authorized by
is for the ur ose for which the Chamber allocation
same general purpose
total gener al allocation for tourist and
is made, making the city Is (4i)• The contract allocation
convention purposes at four percent
percent (1%) complies with the provisions
to the Association of snasended.
of section 351.103, This contract
onf de ation Gontras~• percent (3t),
C.
ax imposed for the arts and
provides that the 50}' of, ra the tion hotel t PS - shall receive three ~
or fifty percent ( as authorized by section 351.103 (a) (4) and
historic preservation, was included because the tax rate
(5), (The fifty percent figure percent). The contract further
at the time the contract was six eam Plant be used for
that t until the proposed Old Steen Plant renovations are
provides }
completed, 1/3 of the l hotel tax r percent (2})•
that renovation. After the renovation is completed, the
Confederation's allocation is to be reduced to two provides that
As noted above, section 351.103 (c), as amended, p
not more than fifteen percent (15t) of the hotel tax ;
sed, whichever is
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collected or one percent of the tax rate impo
e purposes set forth in 351.101 (a)(4)
greater, may be used for th
oifindttocbe
(promotion of the arts). Since, under the C
ues onfederati are no sCe=-ore than one
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1/3 of the three percent of thettaxaven
promotion
percent used for historic preservation,
of the three percent is left to be used for the Pr
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of the arts. Therefore the allocation for the arts under the
confederation contract cu rent v complies with the allocation
requirements of the statute.
` However, there are two problems with the provisions of the
r contract in allowing for an automatic reduction of the allocation
upon completion of the renovation of the Old Steam Plant building.
In allocating the hotel tax revenues, the City council, is
performing a governmental function. A City Council may not
abdicate, surrender, or bargain away its exercise of a governmental
function. City of Farmers pranch v Citv_of Addison, 694 S,W.2d
94 (Tex, App. - Dallas 1985, writ ref Id n.r.s.). The reduction in
the allocation of the hotel tax is dependent on the completion of
the renovation of the building, an event which is not within the
control of the City. For that reason we believe the provision to +
be invalid. In any case, the same purpose may be accomplished by
j approving a new contract making a reduced allocation when the
renovations are completed.
The second problem caused by the provision is that is does not
specify how the reduced two percent should be allocated between
the authorized purposes of promoting the arts and for historic
problem if withe automatic ll cease to exist. clause is
removed, this second coursel
As to the allocation requirements for historic preservation,
the present contract with the confederation allocates one-third
of the three percent allocation for historic restoration, which is
in compliance with the allocation requirements of Sec. 351.103(d).
RFCO}Q3ENDATIONSt The Confederation contract should be
revised to delete the reference to a fifty percent i
allocation of the total hotel tax to the Confederation
and the provision allowing an automatic reduction in the
hotel tax from three to two percent upon completion of
the renovation of the Old Steam Plant building.
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III. Budgeting and Reporting Requirements and Spending
Restrictions.
The Chamber, Fair Association, and Confederation contracts
contain essentially the same provisions regarding financial
requirements and therefore may be reviewed together. The contacts
require the entities to record expenditures on a monthly basis in
separate accounts. The books of account are to be maintained in
a form approved by the City's Director of Finance and shall be
available for inspection. Quarterly, they are required to finish
a performance report of their respective work and the expenditures
during that quarter.
5
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F
t
All the hotel tax revenues are being allocated to private
entities through contracts, as provided for in sec. 351.101 (c). \1
The contract provisions essentially follow the provisions
the r)
statute as to the provisions of 351.101 (c) and (d) , requiring entities to maintain complete financial records on all hotel tax }
expenditures; to keep their financial records available for
inspections sake expenditures; rannddr to ke p h tel ntaxlfundstin
Council on tha eir expe
separate accounts.
any of the three contracts of the statute e not
The following
requiremfiancial ents in the provisions
specified a
1. That the city must approve in writing in advance the
annual program budget of each party.
2. That the tax revenues spent for operations and
administrative costa mu for "incurred
in carrying out a purpose
be spent.
3. That if the entity also administers other programs for
which hotel tax revenues cannot be used, the administrative
activities
costs for the authorized costs incurred in conducting the authorized activitiesactuai
4. That the tax revenues may not be spent for travel expenses of a person for activities not related to the person's
performance of an authorized hotel tax activity.
5. That if the entity makes a " subgrant" to another person
or organization, the subgrant shall be by contract and the
subgrantee must at least annually report to the council the
} expenditures made and make its financial records available for
inspection. '
The statute does not require that these requirements be set forth
in the contract and the statute has no penalty for contra sts
comply with the requirements. However, if the present
he requirements
are to be contractually revised, binding to would insure m future prudent compliance.
if
RECOMMENDATIONS: Those budgeting and reporting requirements
and the spending restrictions contained in Sec. 331.10
presently not a part of the contracts, as noted above, should
be incorporated into contracts.
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s' C
(
We will be available to answer an \
~questions or address any ,
comments you may have about this matter.
5
Respectfully submitted,
i
D. Norris I
° Enclosures 1
r ~ I I
cc! Lloyd V. Harrell, City Manager
John McGrane, Executive Director of Finance
d
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tAxn~ 1
[Chapters $24 W 350 meserved for uWafon] 1
SUBTITLE D. LOCAL HOTEL OCCUPANCY TAXM
CHAPTER 331. MUNICIPAL HOTEL OCCUPANCY TAXgS ,
SUBCHAPTER A. WPOSMON AND Section
COLLECTION OF TAR 331.102 Pkdge for Bowie,
' Seetiom 331.103. Allxatko of Revenu ;
351.001. WW6oom. 351.104 e Alioeatfoo of Revcaae Craw Rda
tav%
351.001: Tax Aathorboi ipaNdom
~ tftye
35
1A03. Tax Ratan. SS1.106. Allocation of Rrtenue: mak 1
351.004. Tax Congcdom
351.006. Reimbursement for Tat: CoUectioa Ex- al Haakipalitiea, Coast I
penes. 361.106. ABoestim of Revenue 1f
With Popwa*q of 900
ALLOCATION ~TIOF USE COOM&MAUM Goya,
353.101. Uss of Tax Renaue.
I
WCM AW Chdrode Reawmvb
See WESTLAW Ekctrook Remeareh GuMe f4
i lowing the Preface.
SUBCHAPTER A. IMPOSMON AND COLLECTION OF TAX ,
~ s31.aI. neffftfaotta
In this dlaptdr.
(1) "Mukipshi WehWu any fn~d dtT, Iowa, or r01W
(2) "convention canter facilities" or "convention
~ i
{ center Complex" means civic canters, civic canter buildings,
auditoriums, exhibition hall@, or
Coliseums i y
(y•amd-esker--mexkekta! I
bulldlagel that are mod by the municipality at other governmental
entity or that are managed In whole or acre by the muaiaioality I
(smHa)ie•teswu-u-eeawmtlem•and•-exHeltlea•-ip1!!tlse~. The +
term I"ludes parking areas or facilities that are for the parking
i
or storage of conveyances aced that are located at or In the
immediate vicinity of other convention center facilities.
~ r I
"EfIE1 U munietpafits" mats A m that ha a popnhtfoa Of at k"
1,200,000 and that hY sdoQbd by Oadioaoes nap al hwV"dmt )lsa for eoawstioa r i
aid madtioa heaftwe The the maofeip kLq-
(4) "El Ab ooeetal =WkiP& ty' mans a homs•:& saofetpa8t~ that bocdws an
?
the Gaff of 1+ cd o aced has A popaladm of hoe that 800000.
(b; "Hold" has the mufitE "VW by Soodon 15001M
{e) 'Tourism' nsana the eute.K er m ems
1 tourists.
17) 'Tourist' means an individual wbe travels from the
1nd v u ' aide a to a different municiaality_
county, state,
or country or P14a are, remotion education or culture,
I
I
r-
f `
r 1
i
, I
10 ar - Moamar
-ANOIr
]MOL
y
some ~*r MON" ilt~►
Masao*
,K 4W
X* zli
~ fa~e"a at tyt.~,>elytKt wMt~`E ~1 Fii4l~
hotel
~
?he wunlelpll 1lidlN►V *1 a11111 11►stR1ti (+tll,14
ia) ~~yl Iy11Hll 1 Illy#I I,J la! Ii1+l`.I
I I i *uniel9allty aay briny ` ►Illhlli Ind }1) iIi BFI! I`~
. aad by hll ,
S callatt %to tL, t~Y'+ ! 11#I 1 I11E !E
.S ollsy iaf i1~ }f1 I1111i 1 t, ;
0\YT t0 t" W441. p
s.. •s fs~114,1 ~ 91/ btf 1`f E++ ~l~~~ ~i,f1 {,IP ~
/yj'rr!/k'; I; 1011
= ,r f * NO
~ ~s•1tyK v'~''~
Moir
3d1A L Tax Aatheorized {
(a) A municipality by ordinance mar frnpo+e a tax on a person who, under s lease,
~6aeahoc, perotit, rig t of notes, Hcease, contract, or agreement, pays for the use or '
possession or for the right to the use or poaaeeion of a room that ie in a hotel, costa =2 or
Mon each dal, sad ie ordinan7y used for siepiag.
c
(c?-nw tax does not apply to a person who has the right to use or possess a room in a .
hotel for 9o or more days.
331.003. Tax Rate .
(a) Except as provided by this section, the tax authorized bar this
(be at any rate not to
is as eligible m~ seven peront of the price l aid for a rm chapter alb
a room in a hotel ti MAY not exceed six percent of the price paid for
(c) 77is rate in a municipality having a population of 900,000 or mon and a council-man
ahoger form of government may not extewl fire portent of the price paid for a room in a
WOOL Tax CoUsedon
(a) The municipal attorney or other attorney acting for the
municipality may bring suit against a parson who Is r
1 aqunred to
collect the tax lstposad by this chapter and pay the collections
over to the municipality and who has failed to f11e a tax re i
port or
pay the tax whom due to collect the tax not Dald er !e e0103n the
I
person from operating a hotel in the municipality until the tax is
t
' paid or the report filed, as applicable, as provided by the court's
order.
(b) Mw remely p w;dsd b7 lids seedon is in addition to other "all" Mmedws.
{ MAL Reheburs"NOW for Tas CeU"11e4 lih<pewsas
fpslity m (a) ° ~ r pssmit a ; ~ who is rwpk d to school tad pay one to the
b7 this eilaptw sot Mors th" acre pereet of the amount
~wp sad requbid to be
the tax trpoeted is reimbareeaoest to the person for the coW b
`
Wuseft
(b) The municipality ma pro►ide that the rMMbnreeM~ Pov by this Ned=
fi
forfeited beaaase of a to he
i" municipality. par the tax or to fee a report as ngninl h► by r the .
r
I s s
S ! alt
~raaeea the r L
13 of the a au od by th -chapter, the
! t &-to do*@ not PLY to the
Possession st u o ,
t a tee. under • .
0 OCtes. 1
S99e, last DrovlQ,Ls toe the naYmemt of the tax at
e the NL• 4 1
ra t unless 0
to chant 1 a
L a o p a a
lncrsase. The
ate a Y fa e o .2L A
4 Or r eo t et s th ate !m ettee r tk con t ra
xetu
-1~
l _
SUBCHAPTER B. USE AND ALLOCATION OF REVENUE
Sec. 731.101. USE Or TAX RtVMM, (a) Revenue from the
municipal hotel occupancy tax may be used only to promote tourism
and the convention and hotel industry, and that use is limited to
the following$
,
1 (1) the acquititioa of sites for and the construction,
semi in repairing, operation, and
r 1 improvement, enlarging, K DD 4,
f maintenance of convention center facilities;
(2) the furnishing of facilities, personnel, ■nd
materials for the registration of convention delegates er
registrants;
(3) Ifaxera!-p••selfie i-axl-teYelsa] advertising Is!
i
}
~ i 1 tMe-mtirte!►alkaq-aal•kls-vti•Im1ty1 and conducting colic tat onr and
I
i a--seike N atlem--axd•-ape ratkmg•srefraal to
, oroaotlonal Drogsaas S
attract rists and convention delwatea or ewiateaats to the
1
( Municipality or its vicinit Isewexakeaa•u;i-vlskure-ektk•e-ky f
ss I
j eke-m.wkskpeirar-•r-ahf•+;sk-.•masses•r!u-r.••a.-•s•.Nanl•aarea. {
1 ~ eeieeeed-ry ak..wmisfp.ilayl+ 1
4 (4) the encouraVWGAt, proswtiea, improvement, and
i application of the arts, including instrumental and vocal music,
I dance, drama, folk art, Creative writing, architecture, design and
I allied fields, painting, •CW Pte, photography, graphic and Craft
i
1
arts, motion pictures, radio, television, tape and sound recording,
~ and other arcs related to the presentation, perforsuuxe, execution, h
and exhibition of these major art forms; AM
(S) historical restoration and preservation projects
t f
er activities or advrtisine mad conducting sollcltatieas and
i
s to eaeouraa~ eourista mad ^^ave^tioa delegates
to visit peesr~44 44. at sites or museumu a
i (A) at or in the imsedist• vicinity of
convention canter facilities; cr i
(a) located t ere in the onralcipality or its
v e n t that would be frequented by tourists, convention
3-
I
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visitors to the municipality' 1
dele0 t• or ocher lewdl b this chapter authorized Ibl Aevenw derlved tram ther ectly
tea tly *AhanccSng and Promoting
i '
to be expended in a manes d by
tourism fam and ttrtel industry as permitted
and th• convention be used for the general
may not
Subsection lal• That revenue operations of a
revenue purposes or general governmental
0f a 516M CI a t b cone act ma
municipality.
c The owrnln bad or a 1
ova enta aerie
dale a e t a arson Inc udin another
Brent o su •rvisloa oL ro rats and ~
th tea author tad b thi
Suers or and anon th man from
v voau advanc
ac vlt e a a v• Sr-
a to Ttta ova n ° vr a t o to vh a t dole a then
th s us, bud at ° "h a k cdf its to
• th s°
1 the • ur mad
lunet o l listf
v n bad t l t u o fled' b cha t
,
b the a •o a ravenu frog th t o i t rave i
ov b th manic • u u this
mum t and r•
rov b aet 0
` c et + e a ae mea or m• t t
tcc a atrw v t an
e ac at an v to
on t ° ~
a ea eve ! th t y a
tIvA o v d b thi
° con Ct a t
b th s cha
v
a 1 + v
~ ar M
f rse ,
e sl ° a (tut
d a o • fun
i s t t
a gull
venue vfd b
'
wt To$
a son undo the co t . 0 e~ E 0 0 i".
a~~ rl~c C. S + ! f
r lit ° a •
A Y w t ~
to a ct t n
s °
t e t '
t v
u ( h t b d °
• s v
of 0
va •
on t
e l IS
• • en
b °
CO the ov
f
1
1
! 1
! Hotel occu anc to revenge, f or t PUMSI
authorised by this sectiop maY b• sPeat for deY-ta•day 22erat12118~
fuvollef salaries, office rental travel expenses ■nd other
administrative costs only if thole administrative costs are
incurred directly in the Promotion " servicing exPendlturee
authorised under Section 3S1 201 if a eunicipal or other Public
or Private entity that conducts an activity for which hotel
occupanev tax few saw may be used under this session conducts other
activities for which hotel occupancy tax revenue may not be use
the Portion of the total administrative casts of the entity far
which hotel occupancy tax revenue may be used may not exceed the
portion of those administrative costs actually incurred in
conduetl the activities for which the hotel occupancy tax revenue i
may be used.
(0) Municipal hotel occupancy tax revenue may not be spant
for travel for a per"n to attend an event or con&ct an Activity
the Prim_ry PurDate of which is not directly related to 0-4
tion of tourism and the convention and hotel industry or the
performance of the pereon's fob in an efficient and Professional
i
acmes.
oh%MCA - 4p lie) I . ZkA k;) of l~ %bb At I t.
(1) Nothing in this section shall prohibit any trIU12
ent1ty. Person. Or OrOaniiaUGA from making nsberants by contrast
f
to any Other Parton entity. Or Private organisation for
112an4iture■ under Section 351.101(e)(4). A subgrantee shall: `
(1) at least anmully asks Seriodie reports to tr0
governing body of its expenditures frog the tax autMrited by this
chapters and
111 make records of these expenditures available for
review to the governing body er other or stn ,
[1) Subsectiqrts (4) sad (h) of this section 40 not apply to lif
anY_Private entity Person or argeniaatien h} eves tax p,~l•
;
rev@=* under Subsection (a) of this section "d sakes expenditures
under Paragraph (i) of Subsactiep (81 of this section
Sea . 35.1 • ~d►4z C Ise,.,) of&A"Hek ( To•x RavcNtt f6^
5(~i~< F1~'I.t Tarsisr• Fact jit~
5e I )i Di
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1 ~
I
I 951.10L Pledge For Aonds '
(a) Subject to the limitations provided by this enbehapter
rereaue derived from the tat imposed under this chapter for the
PlYment i of b ledgethths
st
are iaiued under Section 8, OMIP e= A Aeta of the 5M Legiskbm Ruhr
1985 (Article 1269 4I, Vernon's Tessa pN &Xtutee), for one or more of the p
provided by Secdoo 851.101. Qrpom
(b) Before an eb jp'ble munkipak MAY b m bonds secared in whole or part by the
revenue received from the tat fmpoeed under this chapter, the muniapaiftF most oartity
that the avenge Lanus) debt serviea on ontatLading bbods sad bonds in the proem of ~
issuance that are oomvd in whole or part by the tat antborired by this ehapter and that
were issued for purposes other than convention and expoefpoa f&cWtim don aft aced ?
the maximum annual revenues that the maaieipahtl, eoald receive from the tat imposed
under this section in the aba33ce of special pro►isione under this chaptgr to elirble maakkaNce, plas any other revenue pledged to the payment toofathe boa& ~
$ee. 351.103. ALLOCA?IOK or Rrvim;r cDmm Rte.
:.east SO oareent I>7+s.f•iiwlxe•aanula) o!
I ~ I=vais►pai) hotel
accupaacy tax revenue colI•ct•d by a suwieinality with a oeeslat on
of 200.000 or greater accords to
the seat r~c/nt 1/drat
d•Cenn a e Ue Bust be allocated for the
l E-1241t! Iti/eJ provided
by S•ctlon 351.101(a)(3) A co d o t23e _ asst
recent federal
decannial census for sun3elDalitiaa vita a Da +
i o! Lau ►
200.000, alteeation• for the ourDea■■
by Seet
3$1.101(a)(3) are as foltovar
J 11) if the tax rate An a /Awc loality Is net re d h-AZ
Mn& o! so 1
C I) t o a
of revemu• received by the Muni Gino sty frog the e.
t A--& te of
O •-ha (Of OM D■raenL Of the Coat of the
-room, Or
(2) if the tax in a arunicinali eda r•e m•remt r
of the coat of a romp not lens than the aaoune of revenue received
i by Me mmicival&tv 4m the t at & t o a t of the
r
Coat at a voce. 'Phis mb deu not ■ewly .
O a W-MICI alit
`r that bet / OetoD )989 ads ad n e•
din or th
al allocation of an Int
thI hotel
occunanev tax revenue cola t• by the
4cd mUnlCiCaliLY (CE-1 ae or more
seecific Duroaae■ wrovided br Station 3S1 tetr v
until et,
osdinanea !n repealed or excises or un ii the
no 2oeeer
used for to aDecltiC curDO/ea in an w• in exces o SC
Percent of the tae revenue,tr
I
I
IDS
no • o ■ru S t n +
(b) Suba et on +
t ua p ote
fiscal a th mun Ci al It 1f r
eC
• n / ent
v the
0 cu tax ee I ct d
eh.t oaaaF ands ■t 1++■t om days b••Ore t*• date the fiscal
i-
• exceeds 2 m i n. Ci a1ity •xewesd from the
a be S .
Subs e n s b is sub o a a1 a1 Ocat•
■ 1 ea oa o
111111 • ccu a e ax awaue ordin■nc co s s • v th • oe1•
ho .
It e a t •wnua
Jim to to a 0 this $to a' 1
etian
eovid b Se
all ca •d b th mss is al fc the
to 7S a
7S or sae •xe the can
ut_iel[a1W m■ not a cs
liaitatla does not aeely to as aliQibl• munleiaality a• d• aed .
in Section 15 ee1/3} ?a: Code. -that before October 11 189.
ade is ordi c ovidin for the alto a on of an unt S
a_xeaea oL 7S o•reent of the hats cu a tax own eo oct
+ mere a s
i 1 nsni t for ()in 0 sort
b an • e
until the o di an a s re a
f
povid•d b 3 -tic A SI 101fa}S1
1 exams or uatSl the rwonu• is no 1on0•e ua.d Lor t os•
a excess L 1S • e n o the ax
a i c e a n ■n amo
I
' ~ r•V
LO} Not (!N) more 1e g+rCMt OL the (aaxfskrai~ hotel
'ta eevenu• eollaeted by a mural I9a11iy Or (lkam~ the
i occupancy .3
i amount of tax received by the municipal at the rate of one
vhlehawe !e -I eat r say be used i
percent of the coat of a t
for the pu~o!!! Ib+V"••) provided by Section ]S1.101(a)(4). N?S
eea t t •v 4ue eollset•d
more, A
bV a It • t living la ion OC mOr• than li.Ibe
d by 11 S . -i
u• fp •
c i a
•ubae0tioa dose noe a
a a a th,
by this Cho
~ t au o
Lor a roo# la • ltpt~L
ovenovea ao the aric• oaf SAIII
t not alloea _aa h t•
nv Atax rev • for the auraose■ arovidsd by Ssctloa
It
ocat n t •0 0•
~ ,1 1 m a -
e+ +aality for
s
eueaaer tax r•waue collected by the
is tip a S mu a the +
I v d
+ before es M ordi .ey arovldin~h~ ' +
Octob• + +OS9 adoa 1V
1164 its oft-01-0-4-mount ~•■e of SO aereaat OL th hOt
C p e
b
oe t • • e I1 a •d
1
•
Ii
f
r O1 sa al oeaea
e , dad !ae
~ a a un the 8 Want a 12 1. i ■t°
s sad fo \
to a av nu as p1/ b t
~ wsnu 1 ^ 1
a p un!
~ a e
~ s u t
to
S 1t1p0~
~i to Ce¢5f' ( cc'~~c ~ i
kip
Ite~ ~co L~tl~ 5 6~ a
~ 3St, 106: oh~h'd saaA~~ ~ ~
i q cap ~ ~ i ,
S is t r
- -I 111 11
n •
tt a °a a '
Oil
2 t 1a t •
' a v a
t t
.
°
cpeelj~3~l'' t t t
~r•r is raaadias.,
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1
TEXAS LEGISLATIVE COUNCIL n n
FILE COPY Jil$
nr. r~ ws~e~ a~ v~ tee,. C1 ENROLLED
f
H.B. No. 1023
1 AN ACT
2 relating to taxes on the occupancy of a hotel, motel, or similar
3 establishment.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: ,
f
5 SECTION 1. Section 351.001, Tax Code, is amended by amending
6 Subdivision (2) and adding Subdivisions (6) and (7) to read as
7 follows:
j 8 (2) "Convention center facilities" or "convention
1
9 center complex" means civic centers, civic center buildings,
10 auditoriums, exhibition halls, and coliseums(r-and-etker--mtniefpaI
11 buildings( that are owned by the municipality or other governmental
12 entity or that are managed in whole or part by the municipality
13 (eu4tab~a-fer-nee-as-esnvant4ex-and--axpes~t4sn--lee4i4t1es). The
14 term includes parking areas or facilities that are for the parking
15 or storage of conveyances and that are located at or in the
16 immediate vicinity of other convention center facilities.
17 (6) "Tourism" means the guidance or management of
18 tourists.
19 (7) "Tourist" means an individual who travels from the
20 individual's residence to a different municipality, county, state,
i 21 or country for pleasure, recreation, education or culture
- i
{ 22 SECTION 2. Section 351.004(a), Tax Code, is amended to road i
F 23 as follows:
{ I
24 (a) The municipal attorney or other attorney acting for the
' 1
J '
H.B. No. 1023
1 municipality may bring suit against a person who is required to
2 collect the tax imposed by this chapter and pay the collections
3 over to the municipality and who has failed to file a tax report or
4 pay the tax when due to collect the tax not paid or to enjoin the
5 person from operating a hotel in the municipality until the tax is 4
n 6 paid or the report filed,, as applicable, as provided by the court's
i
1 7 order.
8 SECTION 3. Subchapter A, Chapter 351, Tax Code, is amended
9 by adding Section 351.007 to read .s follows: f
t ~
10 Sec. 351.007. PREEXISTIOG CONTRACTS. If a municipality
11 increases the rate of the tax authorized b this chapter, the
12 increased tax rate does not apply to the tax imposed on the use or
13 possession of a room under a contract executed before October 1,
14 1989, that provides for the payment of the tax at the rate in
{ x
15 effect when the contract was executed unless the contract is
16 subject to change or modification by reason of the tax rate
17 increase The tax rata applicable to the use or possession of a
18 room under the contract is the rate in effect when the contract was ~
i
19 executed. f
20 SECTION 4. Section 351.101, Tax Code, as amended by Chapter
21 2, Acts of the 71st Legislature, Regular Session, 1989, is amended
22 to read as follows:
23 Sec. 351.101. USE Or TAX REVENUE. (a) Revenue from the
24 municipal hotel occupancy tax may be used only to promote tourism j
25 and the convention and hotel industry, and that use is limited to #
t 26 the following: 1
t
i
27 (1) the acquisition of sites for and the construction, i
i
2
. l
TRH
c
1
H.B. No. 1023
1
1 improvement, enlarging, equipping, repairing, operation, and
2 maintenance of convention center facilities;
1 3 (2) the furnishing of facilities, personnel, and
4 materials for the registration of convention delegates or
5 registrants;
6 (3) [genera#-preesst#sna#-and-lent#st) advertising (of
7 !ke-iR*nie#pality-and-#te-v#e#n#!yJ and conducting solicitations and
a promotional programs [a--ssi#e#tat#sn--and--spsrat#n~-preYrnmJ to 1
9 attract tourists and convention delegates or registrants to the
i
{ 10 municipality or its vicinity (eenven!#ens-and-v#e#tere-a#lker-by
11 !ka-;nunle#pa}#ty-sr-lkretigk-eentraets-w#tk-perse~s-a:-srgaa#ast#ees
I
12 ae~setad-by-tks-;nYn#s#pa~#ty~;
13 (4) the encouragement, promotion, improvement, and
14 application of the arts, including instrumental and vocal music,
15 dance, drama, folk art, creative writing, architecture, design and
16 allied fields, painting, sculpture, photography, graphic and craft
17 arts, motion pictures, radio, television, tape and sound recording,
18 and other arts related to the presentation, performance, execution,
19 and exhibition of these major art forms; and
20 (5) historical restoration and preservation projects
21 or activities or advertising and conducting solicitations and
22 promotional programs to encourage tourists and convention delegates
23 to visit preserved historic sites or museums:
24 (A) at or in the immediate vicinity of
25 convention center facilities; or
f
26 (B) located elsewhere in the municipality or its
,
27 vicinity that would be frequented by tourists, convention
3
f
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H.B. No. 1023
1 delegates or other (and) visitors to the municipality.
2 (b) Revenue derived from the tax authorized by this chapter
3 is to be- expended in a manner directly enhancing and promoting
i
4 tourism and the convention and hotel industry as permitted by
5 Subsection (a). That revenue may not be used for the general
6 revenue purposes or general governmental operations of a
7 municipality.
8 (c) The governing body of a municipality by contract may
9 delegate to a person including another governmental entity or a i
10 private organization the management or supervision of procLrams and
11 activities funded with revenue from the tax authorized by this .
12 chapter. The governing body in writing shall approve in advance
I
13 the annual budget of the person to which it delegates those
14 functions and shall require the person to make periodic reports to 1
15 the governing body at least annually listing the expenditures made
16 c the person of revenue from the tax authorized' by this chapter
17 provided b the municipality. The rson must maintain revenue
18 provided by the municipality from the tax authorized by this
19 chapter in a separate account eatablished for that purpose and may
20 not commingle that ravenuo with any other money or maintain it in
21 an other account The municipality may not delegate to any person
22 the mans errant or au envision of its convention and visitors
23 ro rams and activities funded with revenue from the tax authorized
24 b this chapter other than by contract as provided by this
25 subsection. The approval by the oQ vfrnin bod of the municipality
26 of the annual budget of the parson to whom the governing body
27 delegates those functions creates a fiduciary duty in the person
4
1
Y
f
H.B. No. 1023 i
1 with res act to the revenue rovided b the munici alit to the
2 arson under the contract.
3 d -An eli ible munici alit as defined in section
4 351.001 3 Tax code ma not contract with a private or anization
5 under Subsection c unless the contract requires the or anization
6 to select a new overnin bod as soon as racticable after the ;
7 contract takes effect and to limit the composition of its governing
8 bed to not more than 54 members and provides that the
9 appointment, election or other designation of each member of the
10 overnin bod be submitted to and approved by the governing body
11 of the munici alit as long as the contract is in effect. The
i
12 contract is not valid unless before the contract is executed the
13 private organization amends its charter, bylaws or other governing
s 14 rules to conform to the rs iraments of this subsection.
(e1 A parson with whom a munic! alit contracts under this
15
16 section to conduct an activity authorized b this section shall ,
17 maintain complete and accurate financial records of each
i
18 expenditure of hotel occu anc tax revenue made b the person and
19 on request of the govern ing body jL_of the municipality or other
20 person shall make the records available for ins action and review
21 to the overnin body or other erson.
22 (f) Hotel occupancy tax revenue spent for a purpose
23 authorized b this section may be s vent for da -to-da o erations
24 su lies salaries office rental travel expenses, and other
25 administrative costs only if those administrative costs are
26 incurred directly in the remotion and servicin sx enditures
27 authorized under section 351.101. If a municipal or other public
5
w 1
H.S No. 1023
1 or private entity that conducts an activity for whiz hotel
2 occupancy tax revenue may be used under this section conducts other ,
3 activities for which hotel occupancy tax revenue may not ti used,
4 the portion of the total administrative costs of the entil. for
5 which hotel occupancy tax revenue may be used may note xce,l the
6 portion of those administrative costs actually incurred in
7 conducting the activities for which the hotel occupancy tax revenue
S may be used.
g (g) Municipal hotel occupancy tax revenue may not be spent
10 for travel for a person to attend an event or conduct an activity
11 the primary purpoae of which is not directly related to the
12 promotion of tourism ind the convention and hotel industry or the
13 performance of the person's job in an efficient and professional
14 manner,
j 15 (h) The governing body of an eligible municipality, as
16 defined in Section 351 001(3) Tax Coda may not approve the budget
17 of a person with whom the eligible municipality enters into a
18 contract under Subsection (c) unless the governing body fir at holds
19 a public hearing to consider the proposed budget. The governing
20 body may not hold the hearing unless notice of the hearing is
21 published not later than the seventh day before the date of the
22 hearing. The notice must bo published in at least three newspapers
23 having general circulation in the eligible municipality. If there
24 are at least two newspapers having general circulation _ in the
25 eligible municipality that are published daily, the notice must be
26 published in at least two of those newspapers. If there is at
27 least one newspaper having general circulation in the eligible
6
1
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H.B. No. 1023
1 municipality that is published weekly, the notice must be published
2 in at least one of those newspapers If there are fewer than three
3 newspapera•having general circulation in the eligible municipality,
4 the notice must be published in every newspaper having general
5 circulation in the eligible municipality. The notice may not be
6 smaller than one-eighth of a page of the newspaper in which it
7 appears and may not ba published in the part of the newspaper in
8 which legal notices and classified advertisements appear. The
9 notice must include the purpose date, time and exact location of
10 the public hearing and must clearly indicate that members of the '
11 public will be permitted to present their, views at the hearing
12 The notice must contain a summary of the proposed budget including
13 the name of the person whose budget is being considered the total
14 amount to be budgeted, and the eneral uses for which the bud st
15 authorizes hotel occupancy tax revenue to be spent. The hearin
lb must be held at a location convenient to members of the general
i
17 public in the downtown business district of the eligible
is municipality. At the hearing the governing body must afford all
19 interested persons an opportunity to present their views on the
20 proposed budget and its adoption
21 1 Nothin in this section shall prohibit an private
22 entity, person, or organization from making subgrants by contract
23 to any other person entity, or private organization for
24 expenditures under Section 351.101(a L41A subgrantee shall
25 (1) at least annually make periodic reports to the
25 governing body of its expenditures from the tax authorized by this
27 chapter; and
7
1
I
I 2 make records of these H .B. No. 1023
IN snditurea
2 review to the overnin available for
bod or other
3 ersoa.
4 -Subsectiona d and h of this section do not a
an rivets entit l to
arson or or anization
5 revenue under Subsection that receives tax
a of this section and makes ea andltures
6 under Para rah 4
Of Subsection
7 a of this section.
SECTION S.
Subchapter B
, Chapter 351, Tax Code, is amended
9 by adding Section 351.1015 to
read as follows;
9 Sec. 351.2015.
30 TAX REVEWE FOR MANNED SPACE FLIGHT
FACILITY, a A munici alit TOURISM
that is eli able to do so under this E
r; 11 "section ma
- use the tax revenue derived from the on of the
12 tax at
• a rate not t a licati
o exceed one I
13 o gratin rcent for establish,n or ?
anon rotit manned s ace fli ht
i 14 use of revenue The
authorized b tourism facilit .
this section is in addition to other
15 revenue uses authorized b
this cha ter.
16 b A munici alit
is ali able use
17 the revenue for the
u sea to
b Subsection
' a if the no
rofit manned s ace
18 fli ht tourism facility
is located in or not more than 20 miles
19 from the cor orate
limits of the munic! alit .
20 c For 4
u case of this section F
21 fly hit tourism facilit a non rofit manned s ace
is a facility that is.
22 1
owned and o orated
23 or anized b a non rofit co ration
under the Texas
Non-Profit Cor ration Act
~ 24 1396-1.01 et ae ,
25 Article
Vernon a Texas Civil Statutes .
located on or ad acent to a a
26 b the National Aeronautics ace center ocerated
27 and S ace Administration- and
3 used or if the facilit is
not et com letad and
8
1
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H.B. No. 1023 1
1 in operation designed and intended to be used primarily to educate
2 members of the sneral public visiting the facility about manned
3 space flight.
4 (d) For any eligible municipality described in Subsection
5 (b),_ a nor~rofit manned a ace flight- tourism facility shall
6 conclusively__be deemed to be a convention center facility within
t
7 the meaning of Section 351.101(a)(1).
} g e This section expires January 1 1995. ,
9 SECTION 6. Section 351.103, Tax Code, as amended by Chapter
s 10 2, Acts of the 71st Legislature, Regular Session, 1989, is amended {
t{
s it to read as follows: '
12 Sec. 351.103. ALLOCATION OF REVENUE: GENERAL RULE. (a) At
13 least 50 percent (The-9e43ewixg-amexnt) of the [m"ieipai) hotel
14 occupancy tax revenue collected by a municipality with a population
15 of 200,000 or renter according to the most recant federal ~
16 decennial census, must be allocated for the purposes (YSo) provided
17 by Section 351.101(a)(3). According to the most recent federal
f 18 decennial census for municipalities with a population of lass than
I
19 200,000, allocations for the purposes provided by Section
20 35I.101(a)(3) are as follows:
21 1) if the tax rate in a municipality is not more than
` 22 three percent of the cost aid for a room not less than the amount
23 of revenue received b the munici alit from the tax at a rate of
24 one-half of one percent of the cost of the room; or
25 (2) if the tax in a municipality exceeds three percent
26 of the cost of a room not less than the amount of revenue received
27 b the municipality from the tax at a rate of one percent of the
9
1
4 `
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H.B. No. 1023
1 cost of a room. This subsection does not apply to a municipality
2 that before October 1, 1989, adopted an ordinance providing for the
3 allocation of an amount in excess of 50 percent of the hotel
4 occupancy tax revenue collected by tf,s municipality for one or more
5 specific purposes provided by Section 351.101(&)(1) until the
6 ordinance is repealed or expires or until the revenue is no longer
7 used for those specific Purposes in an amount in excess of 50
8 percent of the tax revenue.(r
9 (Eli--![--the--tax--rate--lR-a-mw~lslpa!!tY-ls-Rea-mere
r 10 tkaR-tk:ee-percent-sf-lhe-asst-pald-isr-s-reesT-ast-~ese--tksR--tks
f i
s 11 amennt--e[--raycxae--rescivsd-bY-aka-m~clpa!!tY-[rem-tke-tnx-nt-a ~
1
12 rate-e[-exe-kal[-e[-sae-persaRt-c[-tke•eest-e[-tkr rseaT-cr
13 (E~~--!!-the-tax•rate-!n•a•stxn4clpailtY--exceeds--three
~ t
-the-ame~ust-e[-revcntie
14 perseat e[-the east c[ a rccros net base-than
,
15 rest!ved->rY-the-mrnlelpa!!tY•[r+m-the-tax-at-s-rats-e[-eRa--pcresnt '
i
16 c[-tks-Best-c[-a-rccm,(
17 (b) Subsection (a) does not app! to a municipality in a
~ a
18 fiscal year of the municipality if the total amount of hotel
}
19 occupancy tax collected by the municipality in the most recent
' 20 calendar year that ends at least 94 days before the date the fiscal
21 year begins exceeds $2 million. A municipality excepted from the
22 application of Subsection (a) by this subsection shall allocate
23 hotel occupancy tax revenue by ordinance, consistent with the other
24 limitations of this section. The portion of the tax revenue
25 allocated by the municipality for the purposes provided by Section
26 351.101(a)(1) may not exceed 75 percent, except that the 75 percent
27 limitation does not apply to an eligible municipality, as defined
10
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1 ~
H.H. No. 1023
1 in Section 351.001(3), Tax Code, that before October 1, 1989,
2 adopts an ordinance providing for the allocation of an amount in
3 excess of- 75 percent of the hotel occupancy tax revenue collected
4 by an eligible municipality for one or more specific purposes
5 provided by Section 351.101(a)(1) until the ordinance is repealed
6 or expires or until the revenue is no longer used for those
7 specific purposes in an amount in excess of 75 percent of the tax
i 8 revenue.
t
1 9 c Not (We) more than 15 percent of the (municipal] hotel
30 occupancy tax revenue collected by a municipality or (tkan) the
s 11 amount of tax received by the municipality at the rate of one ,
r ~
12 percent of the cost of a room, whichever is greater, may be used
13 for the purposes (purpose] provided by Section 351.101(a)(4). Not
14 more than 1S percent of the hotel occupancy tax revenue collected
15 by a municipality having a poLulstion of more than 125,000 may be
j 16 used for the purposes provided by Section 351.101(a)(S): This
17 subsection does not AD21Y to an eligible municipality that imposes '
19 the tax authorized by this chapter at a rate that is less than
1
19 seven percent of the price paid for a room in a hotel
20 (d) A municipality that does not allocate any hotel
21 occupancy tax revenue for the purposes provided by Section
22 351.101(a)(1) may allocate not more than 50 percent of the hotel
23 occupancy tax revenue collected b the municipality for the
24 purposes provided by Section 351.101(a)(5) A municipality that
25 before October 1 1989, adopts an ordinance providing for the
26 allocation of an amount in excess of 50 percent of the hotel
27 occupancy tax revenue collected by the municipality for one or more
` 11
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1
H.B. No. 1023
1 specific purposes provided by Section 351.101(a)(5) may allocate
2 the tax revenue as provided by that ordinance until the ordinance
3 is repealed or expires or until the revenue is no longer used for
4 those specific purposes.
5 SECTION 7. 'Section 351.104(b), Tax Code, is amended to read 1
6 as follows:
7 (b) An (bensistent---with ---Eke---provisiens---ef--GestioR
a 361,1e3EaiT-am) eligible municipality shall reserve that portion of i
a
9 the municipal hotel occupancy tax revenue derived from the j
10 application of the tax at a rate in excess of four percent of the
11 cost of a room solely for the purposes provided by Section G
i
12 351.201(a)(1) and for the purpose of securing refunding bonds in
13 connection therewith. This subsection prevails over Section
14 351.103(a).
i ~
15 SECTION S. Subehapter B, Chapter 351, Tax Code, is amended j
16 by adding Section 351.107 to read as follows:
s
17 Sec 351.107. ENFORCEMENT BY ATTORNEY GENERAL. (a] The j ,
i
18 attorney general may investigate alle ed violations of this
f
? 19 subchapter and may bring suit against any person, including a '
20 municipality or person contracting with a municipality, to prevent
21 or stop a violation of this subchapter or to compel the person to
22 comply with this subchapter.
23 (b) The remedy provided by this section is in addition to
24 other available remedies.
25 SECTION 9. Subchapter B, Chapter 352, Tax Code, is amended
26 by adding Section 352.1031 to read as follows:
27 Sec. 352.1031. GENERAL LIMITATIONS ON USE OF REVENUE. (a)
12
I
H.B. No. 1023
I
e
1 Revenue derived from the tax authorized b this cha ter ma ba us d
2 only for the ur as stated in Section 351.101.
derived from the tax authorized b this c a er
3 b Revenue
I~ q wa not be used for the sneral revenue u flee or enaral
t 5 ovarnmsntal operations of a cow
1 6 SECTION 10. Section 352.002, Tax Code, as amended by Chapter*
lar Session, 1989, is amended i,
the 718t Legislatu legu
7 2. Acts of th `
g by amending subsection (a) and adding Subsection (d) to read as 1
~
9 follows!
' 10 (a) The commissioners courts of the following counties by
the adoption of an order or resolution may impose a tax on a person
11
12 who, under a lease, concession, permit, right of access, license,
13 contract, or agreement, pays for the use or possession or for the
14 right to the use or possession of a room that is in a hotel, costs
15 42 or more each day, and is ordinarily used for sleeping: f
16 (1) a county that has a population of more than two
a ' I
17 million;
(2) a county that has a population of 90,000 or more,
18
19 borders on the Republic of Mexico, and does not have three or more f
20 cities that each have a population of more than 17,500; (an,)
i
21 (3) a county in which there is no municipality]
22 4 a count in which there is located an Indian
23 reservation under the urisdiction of the United States overnment•
24 and
25 5 a count that has a o ulation of 15 000 or less +
26 in which there :s located a horse rain track licensed as a class
27 1 or class 2 racetrack under the Texas Racing Act Article 179e
13
i
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1
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H .B. No. 1023
1 Vernon's Texas Civil Statutes .
tax im osed b a count authorized b Subsection
2 d The
3 a 4 to impose the tax done not a 1 to a hotel located in a
t .
4 munici alit that im ones a tax under Cha tsr 351 a licabls to the
5 hotel.
6 SECTION 11. Section 352.004, Tax Code, is amended by adding
7 Subsection (d) to read as follows;
8 d The count attorne ma bring suit against a person who ;
i
f
9 is required to collect the tax imposed by this chapter and Amt t
10 collections over to the count and wtho has failed to fili a tax
i 11 report or a the tax wren due to collect the tax not aid or to 1?1
12 enjoin the person from operating a hotel in the count until the 1
E
{ 13 tax is paidor the report filed, as applicable, as provided by the
~
14 court's order. The remedy rovided b this subsection is in
i
I
# 15 addition to other available remedies. }
lb SECTION 12. Subchapter A, Chapter 352, Tin Code, is amended k ,
352.0031 to read as followse
I
17 by adding Section
i
18 Sec. 352.0031. PREEXISTING CONPRACTS. If a count increases
19 the rate of the tax authorized b this chapter the increased tax
20 rate does not apply to the tax imposed on the use or ssession of III
21 a room under a contract executed before October 1 1989 that
22 provides for the payment of the tax at the rate in effect when the
23 contract was executed, unless the contract is subject to change or
24 modification b reason of the tax rate increase. The tax rata
25 applicable to the use or possession of a room under the contract is
i` 26 the rate in effect when the contract was executed.
i
27 SECTION 13. Subchapter A, Chapter 352, Tax code, is amended
1
14
1
1~ ~
it
H.B. No. 1023
1
1 by addinq Section 352.006 to read as follows:
2 Sec. 352.006. ADMINISTRATION IN COUNTY WITH LICENSED
3 RACFTrACK (a) A county authorized to impose a'tax under_ Section
4 352.002(a)(5) may impose the tax only in a month in which the
5 county satisfies the requirements of Section 352.002(a)(5) relating
6 to the location of a licensed racetrack in the county on the first
I
7 day of the month.
i 9 (b) If the license of a horse racing track in a county that j
1
9 imposes a tax under Section 352.002(a)(5) is suspended, the track
10 is considered as licensed for purposes of Section 352.002(a)(5) if j
t 11 the period for which the license is suspended is one Year or. less
) I
12 or is indefinite If the period of suspension exceeds one year,
1
13 the track is not considered to be licensed for purposes of that
i a
14 section.
15 L) If the license of a horse racing track for which a
{ 16 county is authorized to impose a tax under Section 352.002(a)(5) is
17 suspended for longer than one year or is revoked, the county may
i 18 continue to impose the tax until the and of the next calendar month f o-
I j
19 that follows by at least 20 days the date the license is suspended
20 or revoked. ,
21 (d) For purposes of this section, the license of a horse
22 racing track is suspended or revoked on the date the action to
23 suspend or revoke the license becomes final. An action to suspend
24 or revoke a license is final if the action is not sub#ect to
25 rehearing or reconsideration or to direct administrative or
26 iudicial review.
27 SECTION 14. Section 352.101, Tax Code, as amended by Chapter
is
r \
{1
4
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H.B. No. 1023
1 2, Acts of the 71st Legislature, Regular Session, 1989, is amended
2 by adding Subsections (c) and (d) to read as follows:
3 (c) 'A county to which this Pection applies may delegate the
i
4 authority to spend the county's hotel occu anc tax revenue to a 4
r i
5 private organization only through a contract The contract must
i
6 require the organization to select a new governing body as soon as
i '
7 practicable after the contract takes effect and to limit the
6 composition of its governing body to not more than 54 members, and
i
9 provide that the appointment election or other designation of
i
30 each member of the governing body be submitted to and approved by
11 the governing body of the county as long as the contract is in
12 effect. The contract is not valid unless before the contract is
11 executed the private organization amends its charter, bylaws or f
14 other overnin rules to conform to the r equiremento of this
15 subsection.
I 16 (d) Subsection (c) does not apply to any private entity,
t
17 person, or organization that receives tax revenue under Section `
i 18 351.101{a) and makes expenditures pursuant to Section
i
i 19 351.101(a)(4).
20 SECTION 15. Section 352.102, Tax Code, as amended by Chapter
21 2, Acts of the 71st Legislature, Regular Session, 1989, is amended
22 to read as follows:
23 Sec. 352.102. USE OF REVENUE: COUNTIES BORDERING MEXICO.
24 The revenue from a tax imposed under this chapter by a county that
2S borders the Republic of Mexico and that is further described by
26 Section 352.C02(a)(2) may only be used for:
27 (1) the acquisition of sites for and the construction,,
16
A
1
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H.B. No. 1023
1 improvement, enlarging equipping repairing operation and
2 maintenance of convention center facilities including civic center
3 convention' buildings auditoriums coliseums civic theaters
4 museums, and parking areas or facilities for the parking or storage
1
5 of motor vehicles or other conveyances located at or in the
6 immediate vicinity of the convention center facilities;
7 (2) the furnishing of facilities personnel and
a materials for the registration of convention delegates or
9 registrants;
I 1
10 (3) general promotion and tourist advertising of the
it county and its vicinity and conducting a solicitation program to
12 attract conventions and visitors any of which may be conducted by I
13 the county or through contracts with persons or organizations
14 selected by the county; or
15 (4) the encouragement, promotion, improvement, or
16 application of historical preservation and restoration either b
- ~
17 the county or through contracts with persons or organizations
18 selected by the county (tke-ptirpeses-ifste~-fn-6eea~ee-iG4,~Q~~.
19 SECTION 16. Subchapter S, Chapter 352, Tax Code, is amended 7
r 20 by adding Section 352.1031 to read as follows: J
21 Sec. 352.1031. USE OF REVENUE: COUNTIES WITH LICENSED
22 RACETRACKS. The revenue from a tax imposed under this chapter by a
t
23 county authorized to impose the tax by Section 352 002(a)(5) may be
24 used only for general p.-omotional and tourist advertising of the
25 county and its vicinity and for conducting a solicitation program
26 to attract conventions and visitors any of which may be conducted
27 by the county or through contracts with persons or organizations
17
h "
i
I
1
I1
f H.B. No. 1023
1 selected by the county
r! ~ z
SECTION 17, This Act takes effect October 1, 1989.
3 SECTION 18. The importance of this legislation and the
4 crowded condition of the calendars in both houses create anI .
5 emergency and an
imperative public necessity that the ~
b constitutional rule requiring bills to be read on three several ,
7 days in each house be suspended, and this rule is hereby suspended. i
f
1
1 .
t
I
t
1
i
28
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H.B. No. 1023
I
Presidint of the Senate Speaker of the House
# 1 certify that H.S. No. 1023 was passed by the House on may
! 11, 1989, by a non-record vote; that the House refused to concur in i 1
Senate amendments to H.B. No. 1023 on May 27, 1989, and requested
the appointment of a conference committee to consider the s '
differences between the two houses; and that the House adopted the
r
conference committee report on H.B. No. 1023 on May 29, 1989, by a i
i
non-record vote.
t
i
.
i
i Chief Clerk of the House
1
19
~ c
r
H.B. No. 1023
s
i
I certify that H.B. No. 1023 was passed by the Senate, with
i
amendments,, on May 260 19890 by a viva-voce vote; at the request of
the House, the Senate appointed a conference committee to consider
the differences between the two houses; and that the Senate adopted
the conference committee report on H.B. No. 1023 on May 29, 19890
by a viva-voce vote.
4
I i
i
Secretary of the Senate
h
r APPROVZD:
Dat•
I i
Governor
f;
f 4
I -
1
I
20
i
s
ly
"WWI
e
1394L
THE STATE OF TEXAS S
COUNTY OF DENTON i
i
Thip agreement made and entered into this day of
1986, by and between the City of enton, Texas,
a un c pa orporation, hereinafter called "City", and the
North chartered sunder tthe aLaws soEcstheo Stato of Texas, hereinafter
called "Association";
WITNESSETH:
l r
WHEREAS, City has recently passed an ordinance providing for
the assessment and collection of a hotel-motel occupancy tax in
the City of Denton of seven percent (70 of the consideration
paid by the occupant of a room, space or facility in any
hotel-motel; and
WHEREAS, the Association is well equipped to advertise and
conduct solicitation programs to acquaint potential users with
and to promote meeting, tourism and fairround, proposed City of Dnton; andities
WHEREAS, it is to the mutual benefit of the City and
provide
[ Association that t
and d that funds the to the
Association s use n for
the above stated purposes such
funds for such purposes;
r NOW, THEREFORE, in consideration of the premises and of the
mutual covenants herein contained, City and Association hereby
agree as follows:
1. Association shall employ its best efforts for general
promotional and tourist advertising of the City of Denton and
conducting a solicitation and operating program to attract
meetings and conventions. City and Association recognize that,
hotel occupancy tax proceeds may only be expended for the
purposes enumerated in art. 12691-4.1, Y.A.C.S., as the same may
be amended from time to time. Association agrees to utilize the
funds appropriated herein only for such purposes as authorized
by law.
2. As a consideration for the services set forth in
Paragraph 1 hereof, City agrees to pay to Association an amount
equal to one (11) percent of the consideration paid by the
S
1
, I
s~=~~~1~ ~ ~y 1~~~ ,,'tills ~ ij!
~l"s
A ' r
ga4
r 1
990 'x1of
t's
All-
01
.r yy f..i
1
J
r
r
occupant of a room, space, or facility in any hotel with the
City retaining one percent of the total gross receipts eligible
to be paid to the Association for administrative expenses, but
the City shall not be liable to pay any additional funds. if
the one percent (11) does not adequately reimburse the City for s
its expenses, then City may deduct the actual amount of such
expenses. The eligible amount shall be paid quarterly from the
hotel-motel taxes received in any fiscal year during the term of
this agreement.
3. The City shall, on or before the 45th day following the
end of each quarter, pay the sum of funds the Association is due
which were collected according to Paragraph 2, for that quarter
less one percent (11) to the Association. The quarters will end
on the 31st day of March, the 30th day of June, the 30th day of
September and the 31st day of December of each year.
4. The Association agrees that it will record expenditures
involved in this program on a monthly basis in separate accounts. ,
The books of account will be maintained in a form approved by
i the Director of Finance of the City of Denton and will be {
I available for inspection and copying by the Director, his duly
authorized agents and representatives, during regular business
hours of the Association. K
5. Thirty days after the end of every quarter the Association `I
will furnish to City a performance report of its work under this
contract in a form determined by the City Manager and which shall
reflect overall activity, meetings, conventions and conferences ,
conducted, identity and amounts of advertising conducted, copies
of literature produced as well as a description of direct nail-
ings in the last quarter, and the expenditures during the quarter
of the funds received pursuant to this contract.
6. It is understood and agreed that Association shall not in
any sense be considered a partner or joint venturer with City,
nor shall Association be considered nor in any manner hold
itself out as an agent or official representative of City.
Association shall be considered an independent contractor for
the purposes of this agreement and shall in no manner incur any
expenses or liability on behalf of City.
7. Association does further agree to hold City harmless from
any and all claims by third parties for any injuries, damage or
liability occasioned by Association in connection with this
agreement.
PAGE 2
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8. It is understood and agreed that this contract shall be
terminated upon occurrence of any of the following events:
(a) The giving of written notice by either party to {
the other party at least ninety (90) days prior
to the date of termination;
(b) The termination of the corporate existence of
Association;
t
(c) The insolvency of Association, the filing of a '
petition in bankruptcy, either by or against
i Association, or an assignment by Association for
the benefit of creditors;
(d) The breach by Association of any of the terms and
conditions of this agreement and the continuation
of such breach for a period of ten (10) days
after written notice is given by City to Asso-
ciation of such breach.
f
9. In the event of the termination of this agreement as pro-
vided in Paragraph 8 hereof, Association shall submit to City a
t statement showing any expenses Incurred by it for the present r
quarter in which said termination takes place and City agrees to
reimburse Association, to the extent that said monies are
collected from the hotel occupancy tax during that quarter, an
amount equal to the lesser of the expenses incurred by the
Association during that quarter or the amount of the Association
is eligibls to receive for that quarter. City also realizes
that Association may have committed themselves to pay expenses
s for advertising and solicitation that will occur after the
termination of this agreement, and City agrees to reimburse the '
Association for such expenses up to the cumulative sum of
$1,000.00.
10. Association shall not assign this contract without the
written consent of City first obtained in writing,
11. Any notice required to be given under the terms and
provisions of this agreement shall be effective if and when
given In writing and deposited in the United States Mail,
certified or registered mail, return receipt requested, on the
date so deposited and addressed to the respective parties as
} follows:
PAGE 3
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s ~
City Manager
City of Denton
215 East McKinney
Denton, Texas 76201
~ i .
j President 8 Executive Director l
North Texas State Fair Association }
t P. 0. Box 1695
i Denton, Texas 76202
e 12. This agreement shall be binding upon the successors and
assigns of the respective parties.
13. All the terms, conditions and stipulations cf this con- ,
tract are subject to all applicable federal laws, state laws, i
the Charter of the City of Denton, all ordinances passed pur-
suant thereto and all judicial determinations relative thereto.
{ ~ 1
EXECUTED on this the day of , 1986.
I fff
CITY OF DENTON, TEXAS
t
f
Z
BY: LAMMEMEJE~
ATTEST:
I Y OF DENTON,qTEXAS
i i
{
( PACE 4
:lki
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r
i
i APPROVED AS TO LEGAL FORCITY ATTORNEY
DEBRA ADAMI DRAYOVIT a
TEXAS
CITY OF DENTON+ 1
NORTH ?ERAS STATE FAIR
ASSOCIATION
! 1
BY
4
ATTEST:
y
{
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1
PAGE S
i
11, r
4 ,
f
:
APPROVED AS TO LEGAL FORM;
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY ,
CITY OF DENTON, TEXAS
• 1 , i
BY:
h '
a _
r NORTH TEXAS STATE FAIR
ASSOCIATION f
BY
j
ESIDENT
rs k .
ATTEST:
SECRETARY
1
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PAGE S I
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}
~f S_
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THE STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF DENTON
1
This agreement made and entered into this the 13th day of
March, 1984, by and between the City of Denton, Texas, a Municipal
Corporation, hereinafter called "City", and the Denton Cultural
Confederation, a non-profit corporation chartered under the Laws
of the State of Texas, hereinafter called "Confederation";
WITNESSETH:
WHEREAS, the City has recently passed an ordinance providing V
for the increase of the assessment and collection of a hotel/motel
occupancy tax in the City of Denton from four percent (4%) of the
consideration paid by the occupant of a room, space or facility in ,
i
any hotel/motel to six percent (6x); and
WHEREAS, Article 1269]-4.1 permits the use of a portion of the
i
six percent (6Z) occupancy tax for the encouragement, promotion,
improvement, and the application of the arts, and historical
preservation and restoration; and
i i
!1 WHEREAS, the Confederatior is well equipped to improve and
present the arts and to conduct and coordinate historical preser-
vation and restoration in the City of Denton; and
WHEREAS, it is to the mutual benefit of the City and Confede-
ration that the City provide funds from the additional two
! percentage points' increase in the hotel/motel occupancy tax to the
Confederation
for the above stated purposes and that the Confederation use such
funds for such purposes;
NOW, THEREFORE, in consideration of the premises and of the
mutual covenants herein contained, City and Confederation hereby
j agree as' follows:
1. Confederation shall employ its beat efforts for the
• a
t encouragement, promotion, improvement, and application of the arts
and historical preservation and restoration in the City of Denton
including the establishment and operation by Confederation of an
office for such purposes.
1.
r=
II. Confederation shall use a third (1/3) of the funds
` provided by the City for the restoration of historic facilities,
specifically "The Old City Warehouse and the Old City Steam Plant"
located at the intersection of Hickory and Hell. Upon the
completion of these renovation projects as reflected by the
acceptance of the facility for occupancy by the Confederation and
final payment to the contractor(s) involved in the renovation
projects, the City will retain one percentage point of the six
percent (6X) occupancy tax for purposes to be established by the
City Council. At that time the Confederation will receive two ,
percentage points of the hotel/motel occupancy tax less one
percent (1X) of gross receipts to be retained by the City for
administrative expenses, but the City shall not be liable to pay
~
any additional funds. If one percent (1X) does not adequately
reimburse the City for its expenses, then the City may deduct the
This paragraph, once it becomes
actual amount of such expenses.
effective, shall replace any other allocation of funds as listed
in the following paragraphs of this agreement.
III. Until the new two percent (2X) tax rate allocation listed
It becomes effective, the City shall pay to
in Paragraph
~ j
Confederation an amount equal to the three percent (3X) a
hotel/motel occupancy tax or fifty percent (50x) of the amount
actually collected by the City from the hotel/motel occupancy ts')c
in any fiscal year during the term of this agreement less one
but the City shall not
percent (1X) for administration expenses,
be liable to pay any additional funds. If the one percent (1X)
expenses, then the
does not adequately reimburse the City for its
City may deduct the actual amount of such expenses.
IV. The City shall, on or before the 45th day following the
end of each quarter pay an amount equal to fifty percent (50X) of ;
the monies collected for the quarter, less one percent (1%), to
the Confederation. The quarters will end on the 31st day of
March, the 30th day of June, the 30th day of September and the
PAGE 2
1
• a
31st day of December of each year. The first payment under this
contract will be due forty-five (45) days after the quarter ending
December 31, 1983.
V. The Confederation agrees that it will record expenditures
involved in this program on a monthly basis In separate accounts.
The books of account will be maintained in a form approved by the
Director of Finance of the City of Denton and will be available
for inspection and copying by the Director, his duly authorized
agents and representatives.
VI. Thit ty days .after the and of every quarter the Confedera-
tion will furnish to City a performance report of its work under
this contract in a form determined by the City Manager and which
r shall reflect overall activity, and a description of same in the `
i last quarter, and the expenditures during the quarter of the funds
received pursuant to this contract.
t
VII. It is understood and agreed that Confederation shall not
1
J
! in any sense be considered a partner or joint venturer with City,
i
nor shall Confederation be considered nor in any manner hold
itself out as an agent or official representative of City.
j Confederation shall be considered an independent contractor for ,
the purposes of this agreement and shall in no manner incur any
expenses or liability on behalf of City. i
VIII. Confederation does further agree to hold City harmless
from any and all claims by third parties for any injuries, damage
or liability occasioned by Confederation in connection with this
agreement.
IX. It is understood and agreed that this contract shall be
terminated upon occurence of any of thb following events:
! (a) The giving of written notice by either party to
the other party at least ninety (90) days prior to
the date of termination;
(b) The termination of the corporate existence of
Confederation; j
(c) The insolvency of Confederation, the filing of a
petition in bankruptcy, either by or against
PAGE3
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i
Confederation, or an assignment by Confederation
for the benefit of creditors;
Confederation of any of the terms
(d) aThis nd breech by
and conditions of this agreement and 'ha
continuation period by City t
(10) day s after written notice is given to '
Confederation of such breach.
X. In the event of the termination of this agreement as pro-
vided in Paragraph IX hereof, Confederation shall submit to City a
statement showing any expenses incurred by it for the present
quarter in which said termination takes place and City agrees to
reimburse Confederation, during that quarter, an amount equal to
the lesser of the expenses incurred by the Confederation during
I
~ that quarter or the amount they would normally be eligible to
receive under the terms of this agreement for that quarter. City ,
also realizes that Confederation may have committed themselves to
pay expenses for the promotion and encouragement of the costs that
~ will occur after the termination of this agreement, aadtoCity
the
agrees to reimburse the Confederation for such expenses
cumulative sum of $250.00 from the hotel/motel occupancy tax.
i XI. Confederation shall not assign this contract without the
r
written consent of City first obtained in writing.
XII. Any notice required to be given under the terms and
j provisions of this agreement shall be ef.ctive if and when given
in writing and deposited in the United States Hail, certified or
registered mail, return receipt requested, on the date so
deposited and addressed to the respective parties as follows:
City Manager
City of Denton
215 East McKinney
Denton, Texas 76201
President
Denton Cultural Confederation
Denton, Texas 76201
E
' XIII. This agreement shall be binding upon the auccnssors and
f
assigns of the respective parties.
XIV. All the terms, conditions and stipulations of this con-
tract are subject to all applicable federal laws, state laws, the
PAGE 4
1
Charter of the City of Denton, all ordinances passed pursuant
thereto and all judicial determinations relative thereto.
EXECUTED on this the 13th day of March, 1984.
{ CITY OF DENTON, TEXAS
E ~ is
1
BY:
t ~
ATTEST:
CITY OF DENTON,~TEXAS t'
APPROVED AS TO LEGAL FORM:
C. J. TAYLOR, JR.,
CITY OF DENTON, TEXAS k -
BY: .
DENTON CULTURAL CONFEDERATION j
f s
BY: 3 r s`
P
1
f:
k
A4ER ST: t
T ~r S
y
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I IS`
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PAGE 5
i
THE STATE OF TEXAS
COUNTY OF DENTON
This agreement made and entered into this 13th day of March,
1984, by and between the City of Denton, Texas, a Municipal
e
Corporation, hereinafter called "City", and the Denton Chamber
of Commerce, a non-profit corporation chartered under the Laws
of the State of Texas, hereinafter called "Chamber";
WITNESSETH:
WHEREAS, City has recently passed an ordinance providing for
the assessment and collection of a hotel-motel occupancy tax in
the City of Denton of six percent (6Z) of the consideration paid
by the occupant of a room, space or facility in any hotel-motel;
and 1
WHEREAS, the Chamber is well equipped to advertise and
conduct solicitation programs to acquaint potential users with
I public meeting and convention facilities and to promote tourism
[ and advertise the City of Denton; and
WHEREAS, it is to the mutual benefit of the City and Chamber
j
that the City provide funds to the Chamber for the above stated
purposes and that the Chamber use such funds for such purposes;
i NOW, THEREFORE, in consideration of the premises and of the
mutual covenants herein contained, City and Chamber hereby agree
l ,
J as follows:
1. Chamber shall employ its best efforts for general
promotional and tourist advertising of the City of Denton and
conducting solicitation and operating programs to contract
conventions and visitors, including the establishment and
r operation by Chamber of a convention and visitors bureau.
2. As a consideration for the services set forth in
f Paragraph l hereof, City agrees to pay to Chamber an amount
equal to three percent of the consideration paid by the occupant
of a room, space, or facility in any hotel with the City
PACE 1
c i
' f'~f?tl? tt< <i s i S~f s
41 4~
' retaining one percent of the total #rose receipts eligible to be
paid to the Chamber for administrative expenses, but the City 1
shall not be liable to pay any additional funds. If the one
percent (1%) does not adequately reimburse the City for its
expenses, then City may deduct the actual amount of such
expenses. The eligible amount shall be paid quarterly from the
{ hotel-motel taxes received in any fiscal year during the term of i
I{I this agreement. I
i
3. The City shall, on or before the 45th day following the
end of each quarter pay the sum of funds the Chamber is due
{ which•were collected according to Paragraph 2, for that quarter
less one percent (lx) to the Chamber. 'rhe quarters will end on
the 31st day of March, the 34th day of June, the 30th day of
September and the 31st day of December of each year.
4. The Chamber agrees that it will record expenditures
involved in this program on a monthly basis in separate
accounts. The books of account will be maintained in a form
approved by the Director of Finance of the City of Denton and
j will be available for inspection and copying by the Director,
k his duly authorized agents and representatives, during regular
business hours of the Chamber.
5. Thirty days after the end of every quarter the Chamber
.
will furnish to City a performance report of its work under this
contract in a form determined by the City Manager and which
shall reflect overall activity, meetings, conventions and
conferences conducted, identity and amounts of advertising
conducted, copies of literature produced' as well as a
description of direct mailings in the last quarter, and the
expenditures during the quarter of the funds received pursuant
to this contract. {
6. It is understood and agreed that Chamber shall not in any
sense be considered a partner or joint venturer with City, nor
i PAGE 2
1
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,t Flit? t r ~t~ 1 t 'i} • i ~Ft
. y
shall Cbaaber be coasideed nor in any sinner hold itself out as
an seat or official representative of City. Chamber shall be r
i
considered an independent contractor for the purposes of this
agreement and shall in no manner incur any expenses or liability
on behalf of City.
7. Chamber does further agree to hold City harmless from any
and all claims by third parties for any injuries, damage or
liability occasioned by Chamber in connection with this
1 agreement.
8. It is understood and agreed that this contract shall be
terminated upon occurence of any of the following events:
(a) The giving of written notice by either party to
the other party at least ninety (90) days prior
i to the date of termination;
(b) The termination of the corporate existence of
Chamber;
(c) The insolvency of Chamber, the filing of a
petition in bankruptcy, either by or against
Chamber, or an assignment by Chamber for the
benefit of creditors;
(d) The breach by Chamber of any of the terms and
conditions of this agreement and the continuation
of such breach for a period of ten (10) days
after written notice is given by City to Chamber
of such breach,
9. In the event of the termination of this agreement as ~
provided in Paragraph 8 hereof, Chamber shall submit to C
~ ity a
statement showing any expenses incurred by it for the present
quarter in which said termination takes place and City agrees to
I
reimburse Chamber, to the extent that said monies are collected
from the hotel occupancy tax during that quarter, an amount
equal to the lesser of the expenses incurred by the Chamber
during that quarter or the amount of the Chamber is eligible to
receive for that quarter. City also realizes that Chamber may
have committed themselves to pay expenses for conventions that
will occurr after the termination of this agreement, and City
agrees to reimburse the Chamber for such expenses up to the
cumulative sum of $1,000.00.
1~ Wo3~0;mr,
J + 1•.V
10. Chamber shall got assila this contract without the written `
consent of City first obtained in writing.
It. Any notice required to be given under the terms and
provisions of this agreement shall be effective if and when
given in writing and deposited in the United States Mail,
j
certified or registered mail, return receipt requested, on the
{ date so deposited and addressed to the respective parties as
follows:
City Manager
City of Denton
215 East McKinney
} Denton, Texas 76201
s,
Executive Vice-President
is Denton Chamber of Commerce
414 West Parkway
' Denton, Texas 76201
s
is
12. This agreement shall be binding upon the successors and
assigns of the respective parties.
j 13. All the terms, conditions and stipulations of this con-
tract are subject to all applicable federal laws, state laws,
I the Charter of the City of Denton, all ordinances passed pur-
suant thereto and all judicial determinations relative thereto.
EXECUTED on this the 13th day of March, 1984.
CITY OF DENTON, TEXAS
ATTEST:
DENTON CHAMBER OF COtDIERCE
CITY OF DENTON, TEXAS BY: _ ' , • 1 •'ri '
APPROVED AS TO LEGAL FORM:
C. J. TAYLOR, JR., CITY ATTORNEY
CITY OF DENTON, TEXAS ATTEST:.
BY: /
i
i
City tables decision
,
on motel tax hByJONWEIST opposed to taxing the traveling
public for that "
The Denton City Council voted Platt also questioned whether it
Tuesday' might to table until the wes legal for the city to use 1
first meeting itt September an percent of the revenue in ft
ordinance ~ that would have tin, mwuw. City Attorney C.J. Tsyla
creased the local hotel-motel oc• said that the provWon regarding
cuparncY ttit from its prese+ local historic preserv Uun made It legal sl
^ level of 1 percent to 6 screen Arts council President C1ovi~
Local botei and notch tors Morrison said the tax would
oppose the pcvyosa1. create cultural events that mould
law the ` attract people to Denton, increas-
.A-- A state t season ss a ingmotel btasitess i
n w to a an a I "Nobody comes to a city to star;
to tr* current Ina motel," be ]d, "ubey come tt. i
state hot"otel tax. Currently, visit the city and for the things that i .
the Denton Conventt-ARntau aets goon "
.~Y the , AAA Platt Bald that. of 1W cities In I
etc t and t Texas with an octvpancy lax,; only,
r
t 49 used the revenue for arts f
fEbem 1•
then to CouncKlman harkCbe+a sub 19 tax eti y passed,- gealed tabling the motion until thei
the addittanal revenue would d~aayy city_co W determine what other
's *Md citiet- tamparable stie did
f I.&
wareaouse a the tune:: ' A
daq of Be 7i "1 'need owe in!ormatlot," ba
boater, is 11' said r ; ,
plans 00,066 the structures CfiimbCt of COmtnerce Preai&e f
into Ytsual AM pl, otmipg 'arts Bill Brady relnainad neutral ad the
rr0uld be'eirrtarke¢, or
1
for tesipratl&a - ltd cat any, hat
the lu would end orllt3a (Or( ,tlat doe~'t+
txxnpiet OR it t tl~ bf t1~q n,I
Couhcllatp Aaas$Wtlp
pohntep.Lout'tl~t.t~ th~d
cornsidered tpe Issue earligs, VIM u
" it unatdmaitst~i endorsed.a tesoht
, SCm Plat; ttsat►aget o~,the den-' , t~s~s~,pg ~ r• jd ante'-
on Ramada Inn, :poke , assail ~a•~t! 8 ,
-A to the tax, He rata it wasn't wouldo't `serve any "It" e
!r to tax the traveling public for because It hasn't into effect.
rposes not related to the convet• Yet and'
t and cantors buriau He added 1
t Increasing the tax would tk, we've atudted !4
'ease room rates; tutting Den- enot*O be Bald. ' -
,hotels and mohels at a eompeti (mew's motion, to table was
re disadvantage with those In seconded by Councilman .Jiih
Ipllas. • . . , Barton. It passed 4.2, with Steph era
,We am tot opposed to the arts and Mayor Richard Stewart vollap
in Denton," he said, "we are against it.
-3
1
e
i
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a ` until will `cricder 2 percent motel taxrirea~
i a f i t~d1d (a►atd t
J~~ reco3~upes~datlont~4be„ °d ~~InrlalQeaW) inf
r $JONWEI>;T , 4t ad~tiaaltsx.Ramada'Ina mPaai~' ;
1?tiri appeared befote coemFll Ittlg 110 Zo" Coam►Lssipe 1; that
3t.kVr~ t i is`~ reise, saying the traveling 'A'petilfoa for uarest'rlcfld'a'fldaring t, "So e, vt ia}~ o t o .
IPA
_ percent tacfease Ia the " P~ «est the tac r + ion t~k,aft9ee of hers
Imr abd III—
I ~6e °dCSt tax will be- c8p thatthin , e of
areo re
10 -staff afn•Siysis sa
'All *e pel i a+ t to p~
the
i1ie ~t tied pppprroo ' ter and
9 tfon to tbe, lion , ef;6orbbt Aid ei►arac t
3 r11se43!l 1 F id `Au$ !'11Th' ue
tfitle F a J% I I' iik
~f' ~ h}'! } - l ~
y y,,
k 9. r
Uhl ~ld+a1ta
1 ? y, i; 3di
PO& I
bled y
to,
f i The tdotel fow*,J ) r y~ •~lt~ ~ ~t
t that a fit,
t* 1 j b
F « '
W~ keept
°ie i ni 3d«e i propity " retlrtt. • "t ~'nra{ ~1I3~.
~W ra a 5o cent (tltn e~aidea4Ta1 t } ptf _
I 1 - ~nitatiOFl tees and teea'fOF'pt~imal Eeg~ W ~i`u~a+re~Y i' y lYR1 '
.~~,i trtba.~ , Vii,`, Y~J!iu~.I"^" i~W6 tahtilt7 ~a IIO[IY~
0.6 aher heu*V ¢nacere city re- ma in argil ss !s this, tht're Jis h ag&de. t e, F:, .
t
for wnh* &k" sad use for prow'ttiifnteaance N ; fro
' I tT-• t p ~ egy~
` tree residen~l t~
would arsine the " COJ&il'to two. m is to , ~ sew
:
Oad sad a d tandtill ILd `is Local` o~paSitFoh'' it fat approval, 4A
And the society
"~y `r lx9 f
. 7 Oneoa Y~ wM•~ M+~' tO t~ y.Y Jy `S''
perceoL, ,a r, ll ,~of A a exlsb ~gith` u[.z +
ll ptppS
•ArtsOoµneRPraident,~ Fgsler Road 7h6; ed, seW -for
said the i40661 e+relo -Wt
trcitn a Oanl is oo' X35 acre! .rig qn d 'at to rroU t al t
+ ,
onveet •.ih! titt diiest; *lU ph O* ht sad ,w andes[ ' I •
warehouse ma a pert mu* t+ic"{{(~ b&Meu*tu valsite oF(Ca i
rg~ 4
,,,~g 'wtftiont a staff
i by the, council
f Ap~io~at moles eratom` the ~
` I
' T 7-••5--~
Munn
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TEXAS
ell, X e,
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