Bill Text: TX SB1472 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the collection of state, municipal, and county hotel occupancy taxes by a short-term rental marketplace.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-14 - Referred to Business & Commerce [SB1472 Detail]
Download: Texas-2019-SB1472-Introduced.html
86R10018 CJC-D | ||
By: Powell | S.B. No. 1472 |
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relating to the collection of state, municipal, and county hotel | ||
occupancy taxes by a short-term rental marketplace. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter B, Chapter 156, Tax Code, is amended | ||
by adding Section 156.054 to read as follows: | ||
Sec. 156.054. TAX COLLECTION BY SHORT-TERM RENTAL | ||
MARKETPLACE. (a) For purposes of this section: | ||
(1) "Booking charge" means the charge imposed on a | ||
person by a host for the purpose of renting a short-term rental in | ||
this state and includes any fees charged by the host, regardless of | ||
whether separately itemized. The booking charge is considered the | ||
price paid for a room or space in a hotel for purposes of the | ||
imposition of a hotel occupancy tax. | ||
(2) "Host" means a person who owns a short-term rental | ||
and offers the short-term rental for rent through a short-term | ||
rental marketplace or, if applicable, that person's authorized | ||
agent who offers the short-term rental for rent through a | ||
short-term rental marketplace. | ||
(3) "Short-term rental" has the meaning assigned by | ||
Section 156.001. | ||
(4) "Short-term rental marketplace" means a | ||
marketplace, Internet website, mobile application, or other | ||
platform: | ||
(A) through which a host offers a short-term | ||
rental for rent; and | ||
(B) that collects the booking charge for the | ||
rental of the short-term rental. | ||
(b) Notwithstanding Section 156.053 or any other law: | ||
(1) a short-term rental marketplace: | ||
(A) shall collect the appropriate amount of the | ||
tax imposed under this chapter on each booking charge with respect | ||
to a short-term rental located in this state; | ||
(B) shall report and remit all taxes collected by | ||
the short-term rental marketplace under Paragraph (A) in the manner | ||
required: | ||
(i) of a person owning, operating, | ||
managing, or controlling a hotel under this chapter; or | ||
(ii) if applicable, by an agreement under | ||
Subsection (c); and | ||
(C) is considered to be the person owning, | ||
operating, managing, or controlling the short-term rental for | ||
purposes of the collection and enforcement of the tax imposed under | ||
this chapter; and | ||
(2) the host may not collect and is not liable for a | ||
tax imposed by this chapter on a booking charge for a rental made | ||
through the short-term rental marketplace. | ||
(c) A short-term rental marketplace may enter into an | ||
agreement with a third-party vendor to remit to the comptroller the | ||
taxes imposed by this chapter that the short-term rental | ||
marketplace collects. During the period the agreement is in | ||
effect: | ||
(1) the short-term rental marketplace shall report and | ||
remit all taxes collected by the short-term rental marketplace | ||
under Subsection (b) to the third-party vendor on a schedule | ||
determined by the vendor; and | ||
(2) the vendor shall report and remit the taxes | ||
described by Subdivision (1) to the comptroller in the manner a | ||
person owning, operating, managing, or controlling a hotel is | ||
required to report and remit taxes under this chapter. | ||
(d) The comptroller may adopt rules to implement and | ||
administer this section. | ||
SECTION 2. Subchapter A, Chapter 351, Tax Code, is amended | ||
by adding Section 351.0043 to read as follows: | ||
Sec. 351.0043. TAX COLLECTION BY SHORT-TERM RENTAL | ||
MARKETPLACE. (a) For purposes of this section: | ||
(1) "Booking charge," "host," and "short-term rental | ||
marketplace" have the meanings assigned by Section 156.054. | ||
(2) "Short-term rental" has the meaning assigned by | ||
Section 156.001. | ||
(b) Notwithstanding Section 351.004 or any other law: | ||
(1) a short-term rental marketplace: | ||
(A) shall collect the appropriate amount of the | ||
tax imposed under this chapter by a municipality in which a | ||
short-term rental is located on each booking charge with respect to | ||
that short-term rental; | ||
(B) shall report and remit all taxes collected by | ||
the short-term rental marketplace under Paragraph (A) in the manner | ||
required: | ||
(i) of a person owning, operating, | ||
managing, or controlling a hotel under this chapter and in | ||
accordance with the ordinance adopted by the municipality imposing | ||
the tax; or | ||
(ii) if applicable, by an agreement under | ||
this section; and | ||
(C) is considered to be the person owning, | ||
operating, managing, or controlling the short-term rental for | ||
purposes of the collection and enforcement of the tax imposed under | ||
this chapter; and | ||
(2) the host may not collect and is not liable for a | ||
tax imposed by this chapter on a booking charge for a rental made | ||
through the short-term rental marketplace. | ||
(c) A short-term rental marketplace may: | ||
(1) enter into an agreement with the comptroller to | ||
collect and remit to the comptroller the taxes imposed by a | ||
municipality under this chapter on each booking charge for a rental | ||
made through the short-term rental marketplace; or | ||
(2) enter into an agreement with a third-party vendor | ||
to remit to the municipality the taxes described by Subdivision (1) | ||
that the short-term rental marketplace collects. | ||
(d) To be effective, an agreement described by Subsection | ||
(c)(2) must be approved by the governing body of the municipality. | ||
During the period an agreement described by Subsection (c) is in | ||
effect, the short-term rental marketplace shall report and remit | ||
all taxes collected by the short-term rental marketplace under | ||
Subsection (b) to: | ||
(1) the comptroller on a schedule determined by the | ||
comptroller, if the agreement in effect is with the comptroller; or | ||
(2) the third-party vendor on a schedule determined by | ||
the vendor, if the agreement in effect is with a vendor. | ||
(e) The comptroller or third-party vendor, as applicable, | ||
shall promulgate a form a short-term rental marketplace must use to | ||
report the taxes collected by the short-term rental marketplace | ||
under this section if an agreement under Subsection (c) is in | ||
effect. The form must include the following information: | ||
(1) the total receipts from the rental during the | ||
reporting period of all short-term rentals located in any | ||
municipality that has approved an agreement under this section and | ||
offered for rent through the short-term rental marketplace, | ||
categorized by municipality in which those short-term rentals are | ||
located; | ||
(2) the total amount of booking charges from the | ||
rental during the reporting period of all short-term rentals | ||
located in any municipality that has approved an agreement under | ||
this section and offered for rent through the short-term rental | ||
marketplace, categorized by municipality in which those short-term | ||
rentals are located; | ||
(3) the rate of the tax imposed under this chapter in | ||
each municipality identified under Subdivision (2); and | ||
(4) the total receipts and the total amount of booking | ||
charges from the rental during the reporting period of all | ||
short-term rentals located in a project financing zone as defined | ||
by Section 351.1015 and offered for rent through the short-term | ||
rental marketplace, categorized by project financing zone. | ||
(f) The form described by Subsection (e) may not require the | ||
identification of a specific guest or the host of a short-term | ||
rental. | ||
(g) If the short-term rental marketplace collects and | ||
remits to the comptroller the taxes imposed by the municipality | ||
under this chapter in accordance with an agreement under Subsection | ||
(c)(1), the comptroller shall: | ||
(1) deposit the taxes remitted to the comptroller | ||
under this section in trust in the separate suspense account of the | ||
municipality in which short-term rentals with respect to which the | ||
taxes were collected are located; and | ||
(2) send to the municipal treasurer or to the person | ||
who performs the office of the municipal treasurer payable to the | ||
municipality the municipality's share of the taxes remitted to the | ||
comptroller under this chapter at least 12 times during each state | ||
fiscal year. | ||
(h) A suspense account described by Subsection (g)(1) is | ||
outside the treasury and the comptroller may make a payment from the | ||
account without the necessity of an appropriation. | ||
(i) Before sending any money to a municipality under | ||
Subsection (g) and subject to the limitation provided by this | ||
subsection, the comptroller shall deduct and deposit to the credit | ||
of the general revenue fund an amount equal to one percent of the | ||
amount of the taxes collected from rentals of short-term rentals | ||
located in the municipality under this section during the period | ||
for which a distribution is made as the state's charge for services | ||
provided by the state under this section. The comptroller may not | ||
deduct from the distributions to a municipality more than $50,000 | ||
in each state fiscal year under this subsection. | ||
(j) If the short-term rental marketplace enters into an | ||
agreement with a third-party vendor under Subsection (c)(2), the | ||
vendor shall report and remit to a municipality that approved the | ||
agreement all taxes imposed by the municipality under this chapter | ||
and collected by the short-term rental marketplace on rentals of | ||
short-term rentals located in that municipality at the times and in | ||
the manner provided by the agreement. | ||
(k) Notwithstanding any other law, this section applies to | ||
the collection, remittance, and distribution of taxes imposed by a | ||
political subdivision that is authorized to impose a hotel | ||
occupancy tax under a provision of the Special District Local Laws | ||
Code or civil statutes in the same manner the section applies to a | ||
municipality authorized to impose a hotel occupancy tax under this | ||
chapter. | ||
(l) The comptroller may adopt rules to implement and | ||
administer this section. | ||
SECTION 3. Subchapter A, Chapter 352, Tax Code, is amended | ||
by adding Section 352.0042 to read as follows: | ||
Sec. 352.0042. TAX COLLECTION BY SHORT-TERM RENTAL | ||
MARKETPLACE. (a) For purposes of this section: | ||
(1) "Booking charge," "host," and "short-term rental | ||
marketplace" have the meanings assigned by Section 156.054. | ||
(2) "Short-term rental" has the meaning assigned by | ||
Section 156.001. | ||
(b) Notwithstanding Section 352.004 or any other law: | ||
(1) a short-term rental marketplace: | ||
(A) shall collect the appropriate amount of the | ||
tax imposed under this chapter by a county in which a short-term | ||
rental is located on each booking charge with respect to that | ||
short-term rental; | ||
(B) shall report and remit all taxes collected by | ||
the short-term rental marketplace under Paragraph (A) in the manner | ||
required: | ||
(i) of a person owning, operating, | ||
managing, or controlling a hotel under this chapter and in | ||
accordance with the order adopted by the county imposing the tax; or | ||
(ii) if applicable, by an agreement under | ||
this section; and | ||
(C) is considered to be the person owning, | ||
operating, managing, or controlling the short-term rental for | ||
purposes of the collection and enforcement of the tax imposed under | ||
this chapter; and | ||
(2) the host may not collect and is not liable for a | ||
tax imposed by this chapter on a booking charge for a rental made | ||
through the short-term rental marketplace. | ||
(c) A short-term rental marketplace may: | ||
(1) enter into an agreement with the comptroller to | ||
collect and remit to the comptroller the taxes imposed by a county | ||
under this chapter on each booking charge for a rental made through | ||
the short-term rental marketplace; or | ||
(2) enter into an agreement with a third-party vendor | ||
to remit to the county the taxes described by Subdivision (1) that | ||
the short-term rental marketplace collects. | ||
(d) To be effective, an agreement described by Subsection | ||
(c)(2) must be approved by the commissioners court of the county. | ||
During the period an agreement described by Subsection (c) is in | ||
effect, the short-term rental marketplace shall report and remit | ||
all taxes collected by the short-term rental marketplace under | ||
Subsection (b) to: | ||
(1) the comptroller on a schedule determined by the | ||
comptroller, if the agreement in effect is with the comptroller; or | ||
(2) the third-party vendor on a schedule determined by | ||
the vendor, if the agreement in effect is with a vendor. | ||
(e) The comptroller or third-party vendor, as applicable, | ||
shall promulgate a form a short-term rental marketplace must use to | ||
report the taxes collected by the short-term rental marketplace | ||
under this section if an agreement under Subsection (c) is in | ||
effect. The form must include the following information: | ||
(1) the total receipts from the rental during the | ||
reporting period of all short-term rentals located in any county | ||
that has approved an agreement under this section and offered for | ||
rent through the short-term rental marketplace, categorized by | ||
county in which those short-term rentals are located; | ||
(2) the total amount of booking charges from the | ||
rental during the reporting period of all short-term rentals | ||
located in any county that has approved an agreement under this | ||
section and offered for rent through the short-term rental | ||
marketplace, categorized by county in which those short-term | ||
rentals are located; and | ||
(3) the rate of the tax imposed under this chapter in | ||
each county identified under Subdivision (2). | ||
(f) The form described by Subsection (e) may not require the | ||
identification of a specific guest or the host of a short-term | ||
rental. | ||
(g) If the short-term rental marketplace collects and | ||
remits to the comptroller the taxes imposed by the county under this | ||
chapter in accordance with an agreement under Subsection (c)(1), | ||
the comptroller shall: | ||
(1) deposit the taxes remitted to the comptroller | ||
under this section in trust in the separate suspense account of the | ||
county in which short-term rentals with respect to which the taxes | ||
were collected are located; and | ||
(2) send to the county treasurer payable to the county | ||
the county's share of the taxes remitted to the comptroller under | ||
this chapter at least 12 times during each state fiscal year. | ||
(h) A suspense account described by Subsection (g)(1) is | ||
outside the treasury and the comptroller may make a payment from the | ||
account without the necessity of an appropriation. | ||
(i) Before sending any money to a county under Subsection | ||
(g) and subject to the limitation provided by this subsection, the | ||
comptroller shall deduct and deposit to the credit of the general | ||
revenue fund an amount equal to one percent of the amount of the | ||
taxes collected from rentals of short-term rentals located in the | ||
county under this section during the period for which a | ||
distribution is made as the state's charge for services provided by | ||
the state under this section. The comptroller may not deduct from | ||
the distributions to a county more than $50,000 in each state fiscal | ||
year under this subsection. | ||
(j) If the short-term rental marketplace enters into an | ||
agreement with a third-party vendor under Subsection (c)(2), the | ||
vendor shall report and remit to a county that approved the | ||
agreement all taxes imposed by the county under this chapter and | ||
collected by the short-term rental marketplace on rentals of | ||
short-term rentals located in that county at the times and in the | ||
manner provided by the agreement. | ||
(k) Notwithstanding any other law, this section applies to | ||
the collection, remittance, and distribution of taxes imposed by a | ||
political subdivision that is authorized to impose a hotel | ||
occupancy tax under a provision of the Special District Local Laws | ||
Code or civil statutes in the same manner the section applies to a | ||
county authorized to impose a hotel occupancy tax under this | ||
chapter. | ||
(l) The comptroller may adopt rules to implement and | ||
administer this section. | ||
SECTION 4. Sections 334.253(a) and (b), Local Government | ||
Code, are amended to read as follows: | ||
(a) Sections 351.002(c), 351.004, 351.0041, 351.0043, | ||
351.005, and 351.006, Tax Code, govern the imposition, computation, | ||
administration, collection, and remittance of a municipal tax | ||
authorized under this subchapter except as inconsistent with this | ||
subchapter. | ||
(b) Sections 352.002(c), 352.004, 352.0041, 352.0042, | ||
352.005, and 352.007, Tax Code, govern the imposition, computation, | ||
administration, collection, and remittance of a county tax | ||
authorized under this subchapter except as inconsistent with this | ||
subchapter. | ||
SECTION 5. This Act takes effect September 1, 2019. |