(A) The revenue derived from the hotel occupancy tax imposed and levied by this chapter may be used only to promote tourism and the convention and hotel industry, according to the following limitations:
(1) Advertising and conducting solicitations and promotional programs to attract tourists to the municipality or its vicinity.
(2) Historical preservation and restoration projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists to visit preserved historic sites or museums.
(B) Revenue derived from the hotel occupancy tax shall be expended only in a manner that directly enhances and promotes tourism and hotel industry as delineated in this chapter. Such revenues shall not be used for the general revenue purposes or general governmental operations of the city.
(C) The provisions of Texas Tax Code § 351.101 shall govern the use of tax revenues for promotion of tourism as applicable in this section.
(D) The city may by contract delegate to a person, including another governmental entity or a private organization, the management or supervision of programs and activities funded with revenue from the tax authorized by this chapter.
(1) The city in writing shall approve in advance the annual budget of the person to which it delegates those functions and shall require the person to make quarterly reports listing the expenditures made by the person with revenue from the tax authorized by this chapter.
(2) A person with whom the city contracts under this chapter to conduct an activity authorized by this section shall maintain complete and accurate financial records of each expenditure of hotel occupancy tax revenue made by the person and, on request of the governing body of the municipality or other person, shall make the records available for inspection and review.
(3) Hotel occupancy tax revenue spent for a purpose authorized by this section may be spent for day-to-day operations, supplies, salaries, office rental, travel expenses, and other administrative costs only if those administrative costs are incurred directly in the promotion and servicing expenditures authorized under division (A)(1) of this section.
(4) Hotel occupancy tax revenue may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of tourism and hotel industry or the performance of the person's job in an efficient and professional manner.
(Ord. 977, passed 4-15-08)
Statutory reference:
Authority to impose hotel/motel tax, see Tex. Tax Code Ch. 351