Title
Approving an ordinance on second reading with the caption reading: An Ordinance of the City of Pflugerville, Texas, Amending Code of Ordinances Chapter 33: Finance and Taxation, Hotel Occupancy Tax, Section 33.27 regarding use of proceeds; providing a savings repealer, providing for severability, and providing an effective date.
Summary
This ordinance amendment has been provided for consideration to simplify the language in the ordinance regarding the use of hotel occupancy tax revenue (“HOT Tax”). This will provide greater flexibility in how the City uses HOT Tax to promote tourism and convention activity as provided by State Law, which requires that these funds must be used to 1) promote tourism and the convention and hotel industry, and 2) fall into one of nine statutory categories including, but not limited to, marketing that promotes tourism, historical preservation, promotion of the arts, and certain expenditures related to convention center facilities and visitors information centers.
Under the current ordinance, the City’s use of funds is restricted above and beyond State Law by prescribing minimum percentages of HOT Tax revenue for specific uses. By eliminating exact percentages through adoption of this amendment, the City can adapt and use the funds more effectively as our community continues to grow and evolve.
Prior City Council Action
The City Council approved Ordinance No. 1178-14-05-27 on May 27, 2014, providing for the collection of hotel occupancy taxes in the City of Pflugerville.
This ordinance was approved on first reading on October 8, 2019.
Deadline for City Council Action
Action is requested on second and final reading on October 22, 2019. There is no deadline for action.
Funding Expected: Revenue __ Expenditure __ N/A X
Budgeted Item: Yes __ No __ N/A X
Amount: ________
1295 Form Required? Yes __ No X
Legal Review Required: N/A __ Required X Date Completed: 9/17/19
Supporting documents attached:
Ordinance
Recommended Action
Approve the ordinance on second reading amending Code of Ordinances Chapter 33: Finance and Taxation, Hotel Occupancy Tax, Section 33.27 regarding use of proceeds.