[Federal Register Volume 61, Number 211 (Wednesday, October 30, 1996)]
[Notices]
[Page 55988]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27397]


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GENERAL SERVICES ADMINISTRATION

[GSA Bulletin FTR 22]


Federal Travel Regulation; Texas State Court Decision Overturning 
Texas House Bill 2129 That Imposed a Hotel Occupancy Tax on the Federal 
Government and Federal Employees For Official Travel Performed in the 
State of Texas

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Notice of bulletin.

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SUMMARY: The attached bulletin informs agencies of the recent Texas 
State court decision which overturned a recently enacted Texas State 
hotel occupancy tax. The Texas State legislature enacted Texas House 
Bill 2129, effective September 1, 1995, which imposed a 6 percent hotel 
occupancy tax on the use or possession of a hotel room in the State of 
Texas on the Federal Government and on Federal employees lodging in the 
state while performing official government travel. On April 30, 1996, a 
Texas State court ruled that Texas House Bill 2129 was unconstitutional 
on the basis that the provisions taxing the Federal Government and 
Federal employees performing official travel violated Article VI, 
clause 2, of the U.S. Constitution (the Supremacy Clause), as well as 
Article VIII, section 1 and Article I, section 3 of the Texas State 
Constitution (the Equal Protection Clause). Agencies and their 
employees must no longer be assessed this tax while lodging in Texas on 
official government business.

SUPPLEMENTARY INFORMATION: Agencies may wish to issue internal guidance 
informing their employees who perform official travel in the State of 
Texas that the 6 percent Texas State hotel occupancy tax must not be 
paid. The General Services Administration is attempting to coordinate a 
refund of improperly collected taxes and will issue further guidance on 
this subject.

FOR FURTHER INFORMATION CONTACT:
Calvin L. Pittman, General Services Administration, Travel and 
Transportation Management Policy Division (MTT), Washington, DC 20405, 
telephone 202-501-1538.

    Dated: October 17, 1996.
Becky Rhodes,
Deputy Associate Administrator, Office of Transportation and Personal 
Property.
    Attachment

Attachment

October 17, 1996.
TO: Heads of Federal agencies.
SUBJECT: Texas State court decision overturning Texas House Bill 
2129 that imposed a hotel occupancy tax on the Federal Government 
and Federal employees for official travel performed in the State of 
Texas.

    1. Purpose. This bulletin informs agencies of a recent Texas State 
court decision which overturned the Texas State hotel occupancy tax 
imposed on September 1, 1995.
    2. Background. The Texas State legislature enacted House bill 2129 
which imposed a 6 percent hotel occupancy tax on the use or possession 
of a hotel room in the State of Texas on the Federal Government and on 
Federal employees lodging in the state while performing official 
government travel. Texas House Bill 2129 became effective on September 
1, 1995. However, on April 30, 1996, a Texas State court ruled that 
Texas House Bill 2129 was unconstitutional on the basis that the 
provisions taxing the Federal Government and Federal employees 
performing official travel violated Article VI, clause 2, of the U.S. 
Constitution (the Supremacy Clause), as well as Article VIII, section 1 
and Article I, section 3 of the Texas State Constitution (the Equal 
Protection Clause). See La Quinta Inns, Inc. v. John Sharp, No. 95-
15739 (Dist. Ct. Tex., Apr. 30, 1996). Agencies may wish to issue 
internal guidance to inform their employees performing official travel 
in the State of Texas that the 6 percent Texas State hotel occupancy 
tax must not be paid.
    3. Expiration date. This bulletin expires for administrative 
tracking purposes on April 30, 1997.
    4. For further information contact. Calvin L. Pittman, General 
Services Administration, Travel and Transportation Management Policy 
Division (MTT), Washington, DC 20405, telephone 202-501-1538.

[FR Doc. 96-27397 Filed 10-29-96; 8:45 am]
BILLING CODE 6820-34-M