| 17 | | - | SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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| 18 | | - | by adding Section 351.1016 to read as follows: |
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| 19 | | - | Sec. 351.1016. CERTAIN QUALIFIED PROJECTS IN BORDER |
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| 20 | | - | MUNICIPALITIES. (a) In this section: |
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| 21 | | - | (1) "Base year amount" means the amount of |
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| 22 | | - | hotel-associated revenue collected in a project financing zone |
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| 23 | | - | during the calendar year in which a municipality designates the |
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| 24 | | - | zone. |
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| 25 | | - | (2) "Hotel-associated revenue" means the sum of: |
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| 26 | | - | (A) state tax revenue collected in a project |
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| 27 | | - | financing zone from all hotels located in the zone that would be |
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| 28 | | - | available to the owners of qualified hotel projects under Section |
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| 29 | | - | 151.429(h) if the hotels were qualified hotel projects; and |
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| 30 | | - | (B) tax revenue collected from all permittees |
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| 31 | | - | under Chapter 183 at hotels located in the zone, excluding revenue |
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| 32 | | - | disbursed by the comptroller under Section 183.051(b). |
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| 33 | | - | (3) "Incremental hotel-associated revenue" means the |
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| 34 | | - | amount in any calendar year by which hotel-associated revenue, |
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| 35 | | - | including hotel-associated revenue from hotels built in the project |
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| 36 | | - | financing zone after the year in which a municipality designates |
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| 37 | | - | the zone, exceeds the base year amount. |
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| 38 | | - | (4) "Project financing zone" means an area within a |
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| 39 | | - | municipality: |
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| 40 | | - | (A) that the municipality by ordinance or by |
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| 41 | | - | agreement under Chapter 380, Local Government Code, designates as a |
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| 42 | | - | project financing zone; |
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| 43 | | - | (B) the boundaries of which are within a one-mile |
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| 44 | | - | radius of the center of a qualified project; |
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| 45 | | - | (C) the designation of which specifies the |
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| 46 | | - | longitude and latitude of the center of the qualified project; |
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| 47 | | - | (D) the designation of which expires not later |
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| 48 | | - | than the 15th anniversary of the date of designation; and |
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| 49 | | - | (E) all or part of which is located in an area |
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| 50 | | - | designated as a qualified opportunity zone under Section 1400Z-1, |
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| 51 | | - | Internal Revenue Code of 1986. |
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| 52 | | - | (5) "Qualified project" means: |
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| 53 | | - | (A) a venue that is: |
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| 54 | | - | (i) located on land owned by a |
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| 55 | | - | municipality, another governmental entity, or the owner of the |
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| 56 | | - | venue; |
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| 57 | | - | (ii) partially financed by private |
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| 58 | | - | contributions that equal not less than 40 percent of the project |
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| 59 | | - | costs; and |
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| 60 | | - | (iii) related to the promotion of tourism |
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| 61 | | - | and the convention and hotel industry; or |
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| 62 | | - | (B) towers and other facilities used by hotel |
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| 63 | | - | guests and tourists to observe spacecraft and spaceport activities |
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| 64 | | - | and learn about spacecraft and spaceport operations and launches. |
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| 65 | | - | (6) "Spacecraft" and "spaceport" have the meanings |
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| 66 | | - | assigned by Section 507.001, Local Government Code. |
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| 67 | | - | (7) "Venue" has the meaning assigned by Section |
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| 68 | | - | 334.001, Local Government Code. |
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| 69 | | - | (b) This section applies only to a qualified project located |
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| 70 | | - | in a municipality that is the county seat of a county bordering the |
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| 71 | | - | Gulf of Mexico and the United Mexican States. |
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| 72 | | - | (c) In addition to the uses provided by Section 351.101, |
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| 73 | | - | revenue from the municipal hotel occupancy tax may be used to fund a |
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| 74 | | - | qualified project. |
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| 75 | | - | (d) A municipality may pledge the revenue derived from the |
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| 76 | | - | tax imposed under this chapter from a hotel located in the project |
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| 77 | | - | financing zone for the payment of bonds or other obligations issued |
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| 78 | | - | or incurred to acquire, lease, construct, improve, enlarge, equip, |
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| 79 | | - | operate, maintain, and repair the qualified project or to acquire |
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| 80 | | - | real property on which the qualified project is located. |
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| 81 | | - | (e) A municipality may pledge for the payment of bonds or |
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| 82 | | - | other obligations described by Subsection (d) the local revenue |
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| 83 | | - | from eligible taxable proceeds as defined by Section 2303.5055(e), |
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| 84 | | - | Government Code, from hotels located in a project financing zone |
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| 85 | | - | that would be available to the owners of qualified hotel projects |
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| 86 | | - | under that section if the hotels were qualified hotel projects. |
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| 87 | | - | (f) A municipality shall notify the comptroller of the |
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| 88 | | - | municipality's designation of a project financing zone not later |
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| 89 | | - | than the 30th day after the date the municipality designates the |
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| 90 | | - | zone. Notwithstanding other law, the municipality is entitled to |
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| 91 | | - | receive the incremental hotel-associated revenue from the project |
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| 92 | | - | financing zone for the period beginning on the first day of the year |
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| 93 | | - | after the year in which the municipality designates the zone and |
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| 94 | | - | ending on the last day of the month during which the designation |
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| 95 | | - | expires. The municipality may pledge the revenue for the payment of |
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| 96 | | - | bonds or other obligations described by Subsection (d). |
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| 97 | | - | (g) The comptroller shall deposit incremental |
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| 98 | | - | hotel-associated revenue collected by or forwarded to the |
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| 99 | | - | comptroller in a separate suspense account to be held in trust for |
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| 100 | | - | the municipality that is entitled to receive the revenue. The |
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| 101 | | - | suspense account is outside the state treasury, and the comptroller |
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| 102 | | - | may make a payment authorized by this section from the account |
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| 103 | | - | without the necessity of an appropriation. The comptroller shall |
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| 104 | | - | begin making payments from the suspense account to the municipality |
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| 105 | | - | for which the money is held on the date the qualified project in the |
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| 106 | | - | project financing zone is commenced. If the qualified project is |
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| 107 | | - | not commenced by the fifth anniversary of the first deposit to the |
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| 108 | | - | account, the comptroller shall transfer the money in the account to |
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| 109 | | - | the general revenue fund and cease making deposits to the account. |
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| 110 | | - | (h) The comptroller may estimate the amount of incremental |
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| 111 | | - | hotel-associated revenue that will be deposited to a suspense |
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| 112 | | - | account under Subsection (g) during each calendar year. The |
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| 113 | | - | comptroller may make deposits to the account and the municipality |
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| 114 | | - | may request disbursements from the account on a monthly basis based |
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| 115 | | - | on the estimate. At the end of each calendar year, the comptroller |
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| 116 | | - | shall adjust the deposits and disbursements to reflect the amount |
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| 117 | | - | of revenue actually deposited to the account during the calendar |
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| 118 | | - | year. |
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| 119 | | - | (i) A municipality shall notify the comptroller if the |
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| 120 | | - | qualified project in the project financing zone is abandoned. If |
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| 121 | | - | the qualified project is abandoned, the comptroller shall transfer |
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| 122 | | - | to the general revenue fund the amount of money in the suspense |
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| 123 | | - | account that exceeds the amount required for the payment of bonds or |
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| 124 | | - | other obligations described by Subsection (d). |
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| 125 | | - | SECTION 2. Section 351.10692(a), Tax Code, is amended to |
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| 126 | | - | read as follows: |
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| 11 | + | SECTION 1. Section 351.10692, Tax Code, is amended by |
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| 12 | + | amending Subsections (a) and (c) and adding Subsection (e) to read |
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| 13 | + | as follows: |
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| 141 | | - | miles that is not the county seat. |
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| 142 | | - | SECTION 3. This Act takes effect immediately if it receives |
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| 27 | + | miles. |
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| 28 | + | (c) A municipality that uses revenue from the municipal |
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| 29 | + | hotel occupancy tax for a purpose described by Subsection (b): |
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| 30 | + | (1) shall make a good-faith estimate based on |
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| 31 | + | reasonable documentation of [determine] the annual amount of area |
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| 32 | + | hotel revenue attributable to dark skies related events and |
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| 33 | + | activities [for five years after the date the municipality first |
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| 34 | + | uses hotel occupancy tax revenue for a purpose described by |
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| 35 | + | Subsection (b)]; and |
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| 36 | + | (2) may not spend municipal hotel occupancy tax |
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| 37 | + | revenue for the purposes described by Subsection (b) in an annual [a |
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| 38 | + | total] amount that exceeds the amount determined under Subdivision |
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| 39 | + | (1). |
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| 40 | + | (e) A municipality that uses municipal hotel occupancy tax |
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| 41 | + | revenue under this section may not reduce the percentage of revenue |
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| 42 | + | from that tax allocated for a purpose described by Section |
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| 43 | + | 351.101(a)(3) to a percentage that is less than the average |
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| 44 | + | percentage of the revenue from that tax allocated by the |
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| 45 | + | municipality for the purpose described by Section 351.101(a)(3) |
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| 46 | + | during the 36-month period preceding the date the municipality |
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| 47 | + | begins using revenue for a purpose described by this section. |
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| 48 | + | SECTION 2. Section 352.102, Tax Code, is amended by |
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| 49 | + | amending Subsection (c) and adding Subsection (d) to read as |
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| 50 | + | follows: |
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| 51 | + | (c) A county that borders the Republic of Mexico and that is |
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| 52 | + | further described by Section 352.002(a)(14): |
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| 53 | + | (1) shall use at least one-third of the revenue |
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| 54 | + | collected each fiscal year from the tax imposed under this chapter |
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| 55 | + | for the purposes authorized by this chapter in unincorporated areas |
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| 56 | + | of the county; and |
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| 57 | + | (2) may use revenue from the tax imposed under this |
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| 58 | + | chapter in the same manner that a municipality to which Section |
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| 59 | + | 351.10692 applies may use revenue from the municipal hotel |
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| 60 | + | occupancy tax under that section. |
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| 61 | + | (d) A county that borders the United Mexican States and that |
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| 62 | + | is further described by Section 352.002(a)(7) may use revenue from |
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| 63 | + | the tax imposed under this chapter in the same manner that a |
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| 64 | + | municipality to which Section 351.10692 applies may use revenue |
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| 65 | + | from the municipal hotel occupancy tax under that section. |
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| 66 | + | SECTION 3. Section 351.1035, Tax Code, is repealed. |
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| 67 | + | SECTION 4. This Act takes effect immediately if it receives |
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