By: Seliger S.B. No. 1393
A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal hotel occupancy tax revenue 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 351.10712 to read as follows:
Sec. 351.10712. ALLOCATION OF REVENUE FOR CONSTRUCTION AND
MAINTENANCE OF SPORTS FACILITIES BY CERTAIN MUNICIPALITIES.
(a) This section applies only to a municipality with a population
of at least 95,000, in which the main campus of a component
university of The University of Texas System is located, and that is
located in a county with a population of not more than 140,000.
(b) Notwithstanding any other provision of this chapter, a
municipality to which this section applies may use revenue derived
from the tax imposed under this chapter to construct and maintain a
sports facility on land owned by a state university if the
municipality leases the land on which the sports facility will be
located from the university for a term of at least 25 years.
(c) A municipality that uses revenue derived from the tax
imposed under this chapter for a purpose described by Subsection
(b):
(1) shall determine the amount of area hotel revenue
attributable to the sports events and tournaments held at the
sports facility for seven years after the date the municipality
first uses hotel occupancy tax revenue for the purpose described by
Subsection (b);
(2) shall at the end of the seven-year period
described by Subdivision (1) reimburse from the municipality's
general fund to the municipality's hotel occupancy tax revenue fund
any hotel occupancy tax revenue expended on the sports facility
during that period in excess of the amount determined under
Subdivision (1); and
(3) may not during the seven-year period described by
Subdivision (1) 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 that revenue allocated by the municipality for that
purpose during the 36-month period preceding the date the
municipality first uses hotel occupancy tax revenue for the purpose
described by Subsection (b).
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, 2019.