Legislative Blog

J.B. Williams, J.D.

6 bills that modify the Tax Code

A Blog about 88th Legislature Laws

A Bit of Background

The following backgrounds help summarize the author's views on both the general topic: Texas and more specifically 88th Legislature Laws as it relates to that topic.

Brief Summary of Texas

Texas is truly a Republic. There are a multitude of items that to modify the state constitution must be modified. So there are times when Constitutional amendments are on the voting ballots. While I sometimes abhor the wording, the concept that all of those legally able to vote in Texas must vote on the change is a good one. And bills in Texas are generally short, making it easier for everyone to understand.

Summary of 88th Legislature Laws

The blogs here will discuss the laws passed by Congress and signed into law, as well as those, passed by Congress and approved by the voters to become law. There are a multitude of laws and each time I post blogs I will notate here the current effective date if it is different from prior blogs. I am currently posting bills that took effect immediately - those bills total 336. I am currently posting regarding larger bills, so each blog covers a single bill.

Blog Summary

HB 4494 - Modifies what is considered an eligible coastal municipality.

HB 4660 - Some municipalities may use the hotel occupancy tax revenue toward reducing light pollution and encouraging ecological tourism.

HB 4704 - Sets out the top limit for taxation but still requires voter approval to enact the tax.

SB 617 - Adds border patrol agents and families to the list of protected home addresses.

SB 627 - Permits some additional uses for hotel occupancy taxes for certain municipalities, but also ensure that there is a recapture of any lost state tax revenue.

SB 1122 - Excludes the cost of tests for determine workers' comp eligibility from determining the amount of the workers' comp benefit.

6 bills that modify the Tax Code

Published: 2024-07-16

HB 4494

Eligible coastal municipalities for purposes of the municipal hotel occupancy tax

This modifies definitions dealing with hotel occupancy tax section of the tax code. An eligible coastal municipality is a home-rule municipality that borders the Gulf of Mexico and has a population under 80,000, or a municipality that borders the Gulf of Mexico and has a population under 1,500.

HB 4660

Use of municipal hotel occupancy tax revenue

This applies to municipalities with a population of less than 3,000; that have the Blanco River flowing through them; and are located in a county that is adjacent to the county in which the State Capital is located (currently Travis) and has a population of at least 250,000.

The hotel occupancy tax may be used for dark skies construction and maintenance to reduce light pollution and sky glow. It may also be used for ecological tourism events, including areas of natural or ecological interest for the purpose of observing and learning about wildlife and the natural environment. This is true only if:

1. a majority of the event's participants are tourists; and
2. the event substantially increases economic activity at hotels within the vicinity of the municipality

A municipality that does so many not spend more than the amount they are receiving in income from the tax that is attributable to those activities. It may not exceed more than 35% of the total annual hotel occupancy tax revenue.

HB 4660

Taxing authority of Jackson County County-Wide Drainage District

Permits the possible collection of up to $.75 per $100 of assessed valuation to pay the principal and interest on bonds issued by the District and for operations of the District. An election must be held such that voters are able to vote in favor of or against such tax.

SB 617

Confidentiality of certain home address information in ad valorem tax appraisal records

This section applies to the following (those underlined are newly added):

1. current or former peace officer, and the spouse or surviving spouse;
2. the adult child of a current peace officer;
3. current or honorably retired county jailer;
4. employee of the Texas Department of Criminal Justice;
5. a commissioner security officer;
6. a individual that shows they, the individual child, or a person in their household is a victim of family violence by providing
   1. a copy of a protective order issued under the Family Code or a magistrate's order for emergency protection under the code of Criminal Procedure;
   2. other independent documentary evidence to show they are the victim of family violence;
7. an individual that shows they, their child, or a person in their household is a victim of sexual assault or abuse, stalking, or trafficking of persons by providing
   1. a protective order under the Code of Criminal Procedure;
   2. other independent documentary evidence necessary to show the above;
8. a participant in the address confidentiality program administered by the attorney general;
9. a federal judge, federal bankruptcy judge, a marshal of the US Marshals service, a state judge, or a family member of one of them;
10. a current or former district attorney, criminal district attorney, or county or municipal attorney whose jurisdiction includes criminal law or child protective services;
11. a current or former employee of a district attorney, criminal district attorney, or county or municipal attorney whose jurisdiction includes any criminal law or child protective services;
12. an officer or employee of a community supervision and corrections department;
13. a criminal investigator of the US;
14. a current or honorably retired police officer or inspector of the US Federal Protective Services;
15. a current or former US attorney, assistant US attorney, federal public defender and the spouse and child of the attorney or public defender;
16. a current or former employee of the office of the attorney general who is or was assigned to a division involved in law enforcement;
17. a medical examiner or person who performs forensic analysis or testing for Texas or one or more political subdivisions of Texas;
18. a current or former member of the US armed forces who has served in an area the US President has designated as engage in combat;
19. a current or former employee of the Texas Juvenile Justice Department or the predecessors in function;
20. a current or form juvenile probation or supervision officer certified by the Texas Juvenile Justice Department, or the predecessors in function;
21. a current or former employee of a juvenile justice program or facility;
22. a current or former employee of the Texas Civil Commitment Office or the predecessor in function;
23. a current or former employee of a federal judge or state judge;
24. a current or former child protective services caseworker, adult protective service caseworker, or investigator for the Department of Family and Protective Services, or a current or former employee of a department contractor performing child protective services caseworker, adult protective services caseworker, or investigator functions on the contractors behalf;
25. an elected public officer;
26. a firefighter or volunteer firefighter or emergency medical services personnel;
27. a customs and border protection or border patrol agent of the US Customs and Border Protection or the spouse, surviving spouse, or adult child of a customs and border protection office or border patrol agent

SB 627

Entitlement of certain municipalities to certain tax revenue

This section is limited to:

1. a municipality that contains more than 70% of the population of a county, when the county population is 1.5 million or more;
2. a municipality with a population of 175,000 or more but less than 200,000 and is partially located in at least one county with a population of 125,000 or more;
3. a municipality with a population of 10,000 more more that is wholly located in a county with a population of 4 million or more; and the municipality has it's city hall less than 3 miles from a space center operated by an agency of the federal government (hmmm, oddly specific)

A qualified establishment is modified to mean:

1. (this portion modified) located on land owned by the municipality or owned by a person meeting Section 351.152(3) or the federal government if meeting Section 351.152(6) or a nonprofit corporation if meeting Section 351.152(5)
2. the remaining portions are unchanged

The next section is limited by a multitude of definitions for municipalities with a municipality that contains more than 70% of the population of a county, when the county population is 1.5 million or more being added.

Municipalities covered are entitled to receive revenues now under restaurants, bars, spas, and retain establishments, swimming poops and swimming facilities owned or operated by a related qualified hotel.

Much like HB 3727, there is a recapture of lost state tax revenue section.

On the 20th anniversary of the date the qualified hotel opened, the comptroller shall determine the following:

1. total amount of state tax revenue received, and if additional entitlements; and
2. total amount of state tax revenue received by the state during the period beginning on the 10th anniversary the hotel opened and ending on the 20 anniversary.

If 1 above exceeds 2, then the comptroller shall promptly provide written notice stating that the municipality must remit the difference. The municipality shall remit monthly payments until the amount is paid in full. The first payment must not be made later than the 30th day after notice is received. Subsequent payments are due on the 20th day of each month.

SB 1122

Exclusion of certain medical services performed to determine workers' compensation benefits from sales and use taxes

Insurance service does not now include a medical service, examination, or test required or authorized under Workers' Compensation Benefits. This is for the purpose of determining the appropriate level of benefits.

 

J.B. Williams, J.D.

4,312 federal laws were passed from 1995 through December 2016.
Along with 88,819 federal rules and regulations.