2017S0285-1 02/21/17
By: Canales H.B. No. 2526
A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal hotel occupancy tax revenue for
sporting-related facilities in certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1068 to read as follows:
Sec. 351.1068. ALLOCATION OF REVENUE FOR CERTAIN
MUNICIPALITIES. (a) This section applies only to a municipality
that is the county seat of a county that:
(1) is adjacent to the Texas-Mexico border;
(2) has a population of 500,000 or more; and
(3) is adjacent to two or more counties each of which
has a population of 50,000 or more.
(b) A municipality to which this section applies may use
local hotel occupancy tax revenue for constructing, maintaining, or
expanding a sporting-related facility or sporting-related field on
property owned by the municipality if the municipality's sports
facilities and fields have been used, in the preceding calendar
year, a combined total of more than 10 times for district, state,
regional, or national sports tournaments.
(c) If a municipality to which this section applies uses
revenue derived from the tax imposed under this chapter for the
construction or expansion of a sporting-related facility or
sporting-related field described by Subsection (b), the
municipality shall reimburse the municipality's hotel occupancy
tax revenue fund from the municipality's general fund for any
expenditure greater than the amount of hotel revenue within the
municipality that is attributable to sporting or other events held
at the facility or field during the 10 years beginning on the date
the construction or expansion is completed.
(d) On the second, fourth, sixth, and eighth anniversaries
of the date the construction or expansion of a sporting-related
facility or sporting-related field described by Subsection (b) is
completed, the municipality shall determine and produce a report
indicating whether hotel revenue within the municipality
attributable to sporting or other events held at the facility or
field to date is less than the amount of hotel occupancy tax revenue
expended on the facility or field. If hotel revenue within the
municipality attributable to sporting events held at the facility
or field to date is less than the amount of hotel occupancy tax
revenue expended on the facility or field for the preceding
two-year period, the municipality shall reimburse the
municipality's hotel occupancy tax revenue fund from the
municipality's general fund for any expenditure greater than the
amount of hotel revenue in the municipality attributable to
sporting or other events held at the facility or field.
(e) If a municipality to which this section applies uses
revenue derived from the tax imposed under this chapter for a
purpose described by Subsection (b), the municipality may not
reduce the percentage of revenue from the tax imposed under this
chapter and allocated for a purpose described by Section
351.101(a)(3) to a percentage that is less than the average
percentage of revenue allocated by the municipality for that
purpose during the 36-month period preceding the date the
municipality begins using the revenue for the applicable purpose
described by Subsection (b).
SECTION 2. This Act takes effect September 1, 2017.