[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
