R-1441-7-96RESOLUTION NO. 1441-7-96 (R)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ESTABLISHING ADMINISTRATIVE AND BUDGET
PROCEDURES FOR USES OF REVENUES RESULTING FROM A HOTEL
OCCUPANCY TAX TO BE LEVIED WITHIN THE CITY OF ALLEN, TEXAS; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, under the provisions of V.T.C.A., Tax Code Chapter 351, municipalities are authorized to levy
and establish a hotel occupancy tax upon the cost of occupancy of any sleeping room furnished by any hotel
in the City, where the cost of occupancy is at the rate of two dollars ($2.00) or more per day; with the rate of
such tax not to exceed seven percent (7%) of the consideration paid by the occupant of the sleeping room to
the hotel; and
WHEREAS, the City Council is of the opinion that the general welfare and well-being of the City of Allen
and its citizens will be furthered by the levying and establishing of a hotel occupancy tax, with the funds
derived therefrom to be expended in accordance with provisions of Chapter 351, Texas Tax Code;
WHEREAS, it is the opinion of the City Council that administrative and budget procedures for uses of revenue
generated from a local hotel tax should be established and approved; and
WHEREAS, the City Council has established the Board of Directors of the Allen Economic Development
Corporation (AEDC) to promote and support business activity within the City; and
WHEREAS, hotel development and occupancy of sleeping rooms furnished by hotels in the City is affected
by, and relates to, business activity within the community.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
TEXAS:
SECTION 1: There is hereby established and adopted budget procedures for uses of revenue provided by
a local hotel tax as follows:
a. Revenue generated from a local hotel tax will be collected and accounted for in a separate City
fund.
b. The AEDC will propose a budget for use of the hotel tax revenue, in connection with and
subject to the annual City budget process.
C. The AEDC Board of Directors will make recommendations to the City Council as to the uses
of revenue provided from a local hotel tax.
SECTION 2: The following administrative procedures regarding uses of hotel tax revenue are hereby adopted
and established:
a. The AEDC Board of Directors will consider proposals by interested parties for uses of hotel
tax revenue during Regular or Special AEDC Board meetings as duly posted agenda items.
b. Interested parties including citizens, representatives of local businesses, members of the Allen
Chamber of Commerce and others may make proposals for uses of revenue generated from
a hotel tax for a recommendation of approval or denial by the AEDC Board of Directors.
C. Recommendations of the AEDC Board of Directors and/or interested parties proposing uses
of hotel tax revenue will be duly posted on Regular or Special City Council meeting agendas
for final consideration and approval of denial.
SECTION 3: This Resolution shall become effective on July 18, 1996.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 18TH DAY OF JULY , 1996.
APPROVED:
ATTEST:
dy Mor on, CMC, CITY SECRETARY
Resolution No. 1'441-7-96(R) Page 2