By: West S.B. No. 345
(Davis of Dallas)
A BILL TO BE ENTITLED
AN ACT
relating to the use of tax revenue by certain municipalities for the
payment of certain hotel-related bonds or other obligations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.102(b), Tax Code, is amended to read
as follows:
(b) An eligible central municipality, a municipality with a
population of 173,000 or more that is located within two or more
counties, a municipality with a population of 96,000 or more that is
located in a county that borders Lake Palestine or contains the
headwaters of the San Gabriel River, or a municipality with a
population of at least 99,900 but not more than 111,000 that is
located in a county with a population of at least 135,000 may pledge
the revenue derived from the tax imposed under this chapter from a
hotel project that is owned by or located on land owned by the
municipality or, in an eligible central municipality, by a
nonprofit corporation acting on behalf of an eligible central
municipality, and that is located within 1,000 feet of a convention
center facility owned by the municipality for the payment of bonds
or other obligations issued or incurred to acquire, lease,
construct, and equip the hotel and any facilities ancillary to the
hotel, including convention center entertainment-related
facilities, meeting spaces, restaurants, shops, street and water
and sewer infrastructure necessary for the operation of the hotel
or ancillary facilities, and parking facilities within 1,000 feet
of the hotel or convention center facility. A municipality with a
population of 173,000 or more that is located within two or more
counties may pledge for the payment of bonds or other obligations
described by this subsection the revenue derived from the tax
imposed under this chapter from a hotel project not owned by or
located on land owned by the municipality if the project is located
on land that is owned by the federal government and the project is
located within 1,000 feet of a convention center facility owned by
the municipality. For bonds or other obligations issued under this
subsection, an eligible central municipality or a municipality
described by this subsection may only pledge revenue or other
assets of the hotel project benefiting from those bonds or other
obligations.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.