(a) Not later than the last day of the month following a calendar quarter and subject to Subsection (d), the comptroller shall:
(1) compute the amount of revenue, excluding revenue described by Subsection (e), derived from the collection of taxes imposed under this chapter at a rate of two percent and received from hotels located in an eligible barrier island coastal municipality; and
(2) issue to the municipality a warrant drawn on the general revenue fund for that amount.
(b) An eligible barrier island coastal municipality may use money received under this section only:
(1) to clean and maintain public beaches in that municipality;
(2) for an erosion response project in that municipality; and
(3) to clean and maintain bay shores owned by that municipality or leased by that municipality from this state.

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Terms Used In Texas Tax Code 156.2512


(c) In this section:
(1) “Eligible barrier island coastal municipality” means a municipality:
(A) that borders on the Gulf of Mexico;
(B) that is located wholly or partly on a barrier island; and
(C) that:
(i) includes an institution of higher education that is part of the Texas Coastal Ocean Observation Network under § 33.065, Natural Resources Code;
(ii) includes a national estuarine research reserve;
(iii) is located within 30 miles of the United Mexican States; or
(iv) has a population of less than 10,000 and is located in a county with a population of at least 370,000 that is adjacent to a county with a population of at least 3,000,000.
(2) “Clean and maintain” has the meaning assigned by § 61.063, Natural Resources Code.
(3) “Erosion response project” has the meaning assigned by § 33.601, Natural Resources Code.
(d) The comptroller may not issue a warrant to any municipality under this section for an amount that exceeds the amount of revenue derived from the collection of taxes imposed under this chapter at a rate of two percent and received from hotels located within the municipality.
(e) This section does not apply to revenue derived from the collection of taxes paid by persons for the use or possession of or for the right to the use or possession of a room or space at a qualified hotel project, the owner of which is entitled to a rebate, refund, or payment of hotel occupancy tax revenue under:
(1) § 2303.5055, Government Code; or
(2) § 151.429(h).