Texas 2015 - 84th Regular

Texas House Bill HB2228 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R1372 BEF-D
2	2	By: Darby H.B. No. 2228
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a refund of certain sales taxes collected by certain
8	8	hotels and restaurants that complete renovation projects;
9	9	authorizing a fee.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended
12	12	by adding Section 151.433 to read as follows:
13	13	Sec. 151.433. REFUND PROGRAM FOR HOTEL AND RESTAURANT
14	14	RENOVATION. (a) In this section:
15	15	(1) "Participant" means a person whose application to
16	16	participate in the program has been approved by the comptroller.
17	17	(2) "Program" means the sales tax refund program under
18	18	this section.
19	19	(b) A person who owns and operates a hotel in this state is
20	20	eligible to participate in the program if the person:
21	21	(1) completes a project to repair, renovate, improve,
22	22	or upgrade guest rooms, suites, or common areas of the hotel, for
23	23	which the person spends at least:
24	24	(A) $10,000 per guest room or suite; and
25	25	(B) $2 million total for the project, including
26	26	costs described by Paragraph (A); and
27	27	(2) before beginning the project described by
28	28	Subdivision (1), submits a complete application to the comptroller
29	29	under Subsection (d) for the project that is approved by the
30	30	comptroller under Subsection (e).
31	31	(c) A person who owns and operates a restaurant in this
32	32	state is eligible to participate in the program if the person:
33	33	(1) completes a project to repair, renovate, improve,
34	34	or upgrade dining areas, restrooms, kitchens, common areas,
35	35	exterior signs, building facade, or landscaping of the restaurant,
36	36	for which the person spends at least:
37	37	(A) $10,000 for the kitchen and other areas used
38	38	primarily for food preparation; and
39	39	(B) $100,000 total for the project, including
40	40	costs described by Paragraph (A); and
41	41	(2) before beginning the project described by
42	42	Subdivision (1), submits a complete application to the comptroller
43	43	under Subsection (d) for the project that is approved by the
44	44	comptroller under Subsection (e).
45	45	(d) An applicant to participate in the program must submit
46	46	to the comptroller for each project:
47	47	(1) a $1,000 application fee;
48	48	(2) plans for the proposed project for the hotel or
49	49	restaurant, including an estimated completion date;
50	50	(3) the estimated cost of the project, verified by a
51	51	certified public accountant;
52	52	(4) a record of the annual sales tax collected by the
53	53	hotel or restaurant for the three calendar years preceding the year
54	54	in which the application is submitted, verified by a certified
55	55	public accountant; and
56	56	(5) an estimate of the sales tax that will be collected
57	57	by the hotel or restaurant in the calendar year following the year
58	58	in which the project is completed, verified by a certified public
59	59	accountant.
60	60	(e) The comptroller shall approve an application by an
61	61	applicant if the comptroller finds that the applicant is eligible
62	62	to participate in the program under Subsection (b) or (c).
63	63	(f) A participant is entitled to a refund of sales taxes
64	64	collected by the participant as provided by this section.
65	65	(g) The total amount of refunds to which a participant is
66	66	entitled is equal to 20 percent of the lesser of:
67	67	(1) the estimated cost of the project under Subsection
68	68	(d)(3); or
69	69	(2) the amount actually spent by the participant on
70	70	the project described by Subsection (b)(1) or (c)(1).
71	71	(h) The amount of the refund to which a participant is
72	72	entitled for a previous calendar year is equal to the lesser of:
73	73	(1) 25 percent of an amount determined by:
74	74	(A) determining the amount of sales tax collected
75	75	by the participant's hotel or restaurant in that calendar year; and
76	76	(B) subtracting the average annual amount of
77	77	sales tax collected by that hotel or restaurant as reported in the
78	78	participant's application under Subsection (d)(4); and
79	79	(2) the total amount of refunds to which the
80	80	participant is entitled under Subsection (g) minus the amount of
81	81	refunds issued to the participant in previous years.
82	82	(i) Not later than April 15 of each year, the comptroller
83	83	shall issue to a participant any refund for which the participant is
84	84	entitled for the previous calendar year.
85	85	(j) Projects at different locations of the same hotel or
86	86	restaurant are separate projects for purposes of this section.
87	87	(k) An application fee under Subsection (d) may be used only
88	88	by the comptroller to pay the cost of administering the program.
89	89	(l) The comptroller may adopt any rules or forms necessary
90	90	to implement this section.
91	91	SECTION 2. The change in law made by this Act does not
92	92	affect taxes imposed before the effective date of this Act, and the
93	93	law in effect before the effective date of this Act is continued in
94	94	effect for purposes of the liability for and collection of those
95	95	taxes.
96	96	SECTION 3. This Act takes effect September 1, 2015.