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Texas House Bill HB2282

Texas 2023 - 88th Regular

Texas House Bill HB2282 Compare Versions

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11 88R4537 CJC-D
22 By: Gamez H.B. No. 2282
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the use of hotel occupancy tax revenue by certain
88 municipalities and counties and the authority of certain
99 municipalities to receive certain tax revenue derived from a hotel
1010 and convention center project and to pledge certain tax revenue for
1111 the payment of obligations related to the project.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. This Act may be cited as the Lucio-Kristofferson
1414 Act.
1515 SECTION 2. Section 351.1063, Tax Code, is amended by adding
1616 Subsection (c) to read as follows:
1717 (c) Notwithstanding Subsection (b), a municipality
1818 described by Section 351.152(46) that uses revenue derived from the
1919 tax imposed under this chapter or funds received under Section
2020 351.156 or 351.157 for a qualified project under Section 351.155
2121 may not reduce the percentage of revenue from the tax imposed under
2222 this chapter and allocated for a purpose described by Section
2323 351.101(a)(3) to a percentage that is less than the greater of:
2424 (1) the average percentage of that revenue allocated
2525 by the municipality for that purpose during the 36-month period
2626 preceding the date the municipality begins using the revenue or
2727 funds for the project; or
2828 (2) 10 percent.
2929 SECTION 3. Section 351.152, Tax Code, is amended to read as
3030 follows:
3131 Sec. 351.152. APPLICABILITY. This subchapter applies only
3232 to:
3333 (1) a municipality described by Section
3434 351.001(7)(B);
3535 (2) a municipality described by Section
3636 351.001(7)(D);
3737 (3) a municipality described by Section
3838 351.001(7)(E);
3939 (4) a municipality described by Section
4040 351.102(e)(3);
4141 (5) a municipality that contains more than 75 percent
4242 of the population of a county with a population of 1.5 million or
4343 more;
4444 (6) a municipality with a population of 150,000 or
4545 more but less than 200,000 that is partially located in at least one
4646 county with a population of 125,000 or more;
4747 (7) a municipality with a population of 150,000 or
4848 more but less than one million that is located in one county with a
4949 population of 2.3 million or more;
5050 (8) a municipality with a population of 180,000 or
5151 more that:
5252 (A) is located in two counties, each with a
5353 population of 100,000 or more; and
5454 (B) contains an American Quarter Horse Hall of
5555 Fame and Museum;
5656 (9) a municipality with a population of 96,000 or more
5757 that is located in a county that borders Lake Palestine;
5858 (10) a municipality with a population of 96,000 or
5959 more that is located in a county that contains the headwaters of the
6060 San Gabriel River;
6161 (11) a municipality with a population of 99,900 or
6262 more but less than 111,000 that is located in a county with a
6363 population of 135,000 or more;
6464 (12) a municipality with a population of 110,000 or
6565 more but less than 135,000 at least part of which is located in a
6666 county with a population of less than 135,000;
6767 (13) a municipality with a population of 9,000 or more
6868 but less than 10,000 that is located in two counties, each of which
6969 has a population of 662,000 or more and a southern border with a
7070 county with a population of 2.3 million or more;
7171 (14) a municipality with a population of 200,000 or
7272 more but less than 300,000 that contains a component institution of
7373 the Texas Tech University System;
7474 (15) a municipality with a population of 95,000 or
7575 more that:
7676 (A) is located in more than one county; and
7777 (B) borders Lake Lewisville;
7878 (16) a municipality with a population of 45,000 or
7979 more that:
8080 (A) contains a portion of Cedar Hill State Park;
8181 (B) is located in two counties, one of which has a
8282 population of two million or more and one of which has a population
8383 of 149,000 or more; and
8484 (C) has adopted a capital improvement plan for
8585 the construction or expansion of a convention center facility;
8686 (17) a municipality with a population of less than
8787 6,000 that:
8888 (A) is almost wholly located in a county with a
8989 population of 600,000 or more that is adjacent to a county with a
9090 population of two million or more;
9191 (B) is partially located in a county with a
9292 population of 1.8 million or more that is adjacent to a county with
9393 a population of two million or more;
9494 (C) has a visitor center and museum located in a
9595 19th-century rock building in the municipality's downtown; and
9696 (D) has a waterpark open to the public;
9797 (18) a municipality with a population of 56,000 or
9898 more that:
9999 (A) borders Lake Ray Hubbard; and
100100 (B) is located in two counties, one of which has a
101101 population of less than 80,000;
102102 (19) a municipality with a population of 83,000 or
103103 more that:
104104 (A) borders Clear Lake; and
105105 (B) is primarily located in a county with a
106106 population of less than 300,000;
107107 (20) a municipality with a population of less than
108108 2,000 that:
109109 (A) is located adjacent to a bay connected to the
110110 Gulf of Mexico;
111111 (B) is located in a county with a population of
112112 290,000 or more that is adjacent to a county with a population of
113113 four million or more; and
114114 (C) has a boardwalk on the bay;
115115 (21) a municipality with a population of 75,000 or
116116 more that:
117117 (A) is located wholly in one county with a
118118 population of 575,000 or more that is adjacent to a county with a
119119 population of four million or more; and
120120 (B) has adopted a capital improvement plan for
121121 the construction or expansion of a convention center facility;
122122 (22) a municipality with a population of less than
123123 75,000 that is located in three counties, at least one of which has
124124 a population of four million or more;
125125 (23) an eligible coastal municipality with a
126126 population of 3,000 or more but less than 5,000;
127127 (24) a municipality with a population of 90,000 or
128128 more but less than 150,000 that:
129129 (A) is located in three counties; and
130130 (B) contains a branch campus of a component
131131 institution of the University of Houston System;
132132 (25) a municipality that is:
133133 (A) primarily located in a county with a
134134 population of four million or more; and
135135 (B) connected by a bridge to a municipality
136136 described by Subdivision (20);
137137 (26) a municipality with a population of 20,000 or
138138 more but less than 25,000 that:
139139 (A) contains a portion of Mustang Bayou; and
140140 (B) is wholly located in a county with a
141141 population of less than 500,000;
142142 (27) a municipality with a population of 70,000 or
143143 more but less than 90,000 that is located in two counties, one of
144144 which has a population of four million or more and the other of
145145 which has a population of less than 50,000;
146146 (28) a municipality with a population of 10,000 or
147147 more that:
148148 (A) is wholly located in a county with a
149149 population of four million or more; and
150150 (B) has a city hall located less than three miles
151151 from a space center operated by an agency of the federal government;
152152 (29) a municipality that is the county seat of a
153153 county:
154154 (A) through which the Pedernales River flows; and
155155 (B) in which the birthplace of a president of the
156156 United States is located;
157157 (30) a municipality that contains a portion of U.S.
158158 Highway 79 and State Highway 130;
159159 (31) a municipality with a population of 48,000 or
160160 more but less than 95,000 that is located in two counties, one of
161161 which has a population of 900,000 or more but less than 1.7 million;
162162 (32) a municipality with a population of less than
163163 25,000 that contains a museum of Western American art;
164164 (33) a municipality with a population of 50,000 or
165165 more that is the county seat of a county that contains a portion of
166166 the Sam Houston National Forest;
167167 (34) a municipality with a population of less than
168168 25,000 that:
169169 (A) contains a cultural heritage museum; and
170170 (B) is located in a county that borders the
171171 United Mexican States and the Gulf of Mexico;
172172 (35) a municipality that is the county seat of a county
173173 that:
174174 (A) has a population of 115,000 or more;
175175 (B) is adjacent to a county with a population of
176176 1.8 million or more; and
177177 (C) hosts an annual peach festival;
178178 (36) a municipality that is the county seat of a county
179179 that:
180180 (A) has a population of 585,000 or more; and
181181 (B) is adjacent to a county with a population of
182182 four million or more;
183183 (37) a municipality with a population of less than
184184 10,000 that:
185185 (A) contains a component university of The Texas
186186 A&M University System; and
187187 (B) is located in a county adjacent to a county
188188 that borders Oklahoma;
189189 (38) a municipality with a population of less than
190190 6,100 that:
191191 (A) is located in two counties, each of which has
192192 a population of 600,000 or more but less than two million; and
193193 (B) hosts an annual Cajun Festival;
194194 (39) a municipality with a population of 13,000 or
195195 more that:
196196 (A) is located on an international border; and
197197 (B) is located in a county:
198198 (i) with a population of less than 400,000;
199199 and
200200 (ii) in which at least one World Birding
201201 Center site is located;
202202 (40) a municipality with a population of 4,000 or more
203203 that:
204204 (A) is located on an international border; and
205205 (B) is located not more than five miles from a
206206 state historic site that serves as a visitor center for a state park
207207 that contains 300,000 or more acres of land;
208208 (41) a municipality with a population of 36,000 or
209209 more that is adjacent to at least two municipalities described by
210210 Subdivision (15);
211211 (42) a municipality with a population of 28,000 or
212212 more in which is located a historic railroad depot and heritage
213213 center;
214214 (43) a municipality located in a county that has a
215215 population of not more than 300,000 and in which a component
216216 university of the University of Houston System is located;
217217 (44) a municipality with a population of less than
218218 500,000 that is:
219219 (A) located in two counties; and
220220 (B) adjacent to a municipality described by
221221 Subdivision (31); [and]
222222 (45) a municipality that:
223223 (A) has a population of more than 67,000; and
224224 (B) is located in two counties with 90 percent of
225225 the municipality's territory located in a county with a population
226226 of at least 580,000, and the remaining territory located in a county
227227 with a population of at least four million; and
228228 (46) a municipality that is the county seat of a county
229229 bordering the Gulf of Mexico and the United Mexican States.
230230 SECTION 4. Section 351.153(a), Tax Code, is amended to read
231231 as follows:
232232 (a) This section applies only to a municipality described by
233233 Section 351.152(6), [or] (29), or (46).
234234 SECTION 5. Section 351.156, Tax Code, is amended to read as
235235 follows:
236236 Sec. 351.156. ENTITLEMENT TO CERTAIN TAX REVENUE. (a)
237237 Subject to Sections 351.155(e) and 351.158 and Subsection (b) of
238238 this section, a municipality is entitled to receive the revenue
239239 derived from the following taxes generated, paid, and collected by
240240 a qualified hotel, and each restaurant, bar, and retail
241241 establishment located in or connected to the hotel or the related
242242 qualified convention center facility, that is located in the
243243 municipality:
244244 (1) the sales and use tax imposed under Chapter 151;
245245 (2) the hotel occupancy tax imposed under Chapter 156;
246246 and
247247 (3) if a political subdivision that is entitled to
248248 receive the revenue from the tax agrees in writing to the
249249 municipality receiving that revenue:
250250 (A) the sales and use tax imposed by the
251251 political subdivision under Chapter 322 or 323;
252252 (B) the hotel occupancy tax imposed by the
253253 political subdivision under Chapter 352; and
254254 (C) the mixed beverage tax issued under Section
255255 183.051.
256256 (b) A municipality described by Section 351.152(46) is
257257 entitled to receive 75 percent of the revenue described by
258258 Subsection (a).
259259 SECTION 6. Section 351.157, Tax Code, is amended by
260260 amending Subsections (a), (b), (c), and (d) and adding Subsection
261261 (d-1) to read as follows:
262262 (a) In this section, "qualified establishment" means an
263263 establishment:
264264 (1) that is located on land:
265265 (A) owned by a municipality; [or]
266266 (B) owned by any person if the establishment is
267267 located in a municipality described by Section 351.152(3);
268268 (C) [or] owned by the federal government if the
269269 establishment is located in a municipality described by Section
270270 351.152(6); or
271271 (D) owned by a county or by the federal
272272 government if the establishment is located in a municipality
273273 described by Section 351.152(46);
274274 (2) the nearest exterior wall of which is located not
275275 more than 1,000 feet from the nearest exterior wall of a qualified
276276 hotel or qualified convention center facility;
277277 (3) that is constructed:
278278 (A) on or after the date the municipality
279279 commences a qualified project under this subchapter; or
280280 (B) at any time if the establishment is located
281281 in a municipality described by Section 351.152(3);
282282 (4) that is not a sports stadium; and
283283 (5) that is the type of establishment described by
284284 Subsection (c) from which the municipality is entitled to receive
285285 revenue under Subsection (d).
286286 (b) This section applies only to:
287287 (1) a municipality described by Section 351.152(3);
288288 (2) a municipality described by Section 351.152(6);
289289 (3) a municipality described by Section 351.152(7);
290290 (4) a municipality described by Section 351.152(10);
291291 (4-a) a municipality described by Section
292292 351.152(14);
293293 (5) a municipality described by Section 351.152(16);
294294 (6) a municipality described by Section 351.152(22);
295295 (7) a municipality described by Section 351.152(25);
296296 (8) a municipality described by Section 351.152(34);
297297 (9) a municipality described by Section 351.152(35);
298298 (10) a municipality described by Section 351.152(36);
299299 (11) a municipality described by Section 351.152(38);
300300 [and]
301301 (12) a municipality described by Section 351.152(43);
302302 and
303303 (13) a municipality described by Section 351.152(46).
304304 (c) A municipality is entitled to receive revenue under
305305 Subsection (d) derived from the following types of establishments
306306 that meet the requirements of Subsections (a)(1), (2), (3), and
307307 (4):
308308 (1) for a municipality described by Subsection (b)(1):
309309 (A) restaurants, bars, and retail
310310 establishments; and
311311 (B) swimming pools and swimming facilities owned
312312 or operated by the related qualified hotel;
313313 (2) for a municipality described by Subsection (b)(2),
314314 swimming pools and swimming facilities, restaurants, bars, and
315315 retail establishments;
316316 (3) for a municipality described by Subsection (b)(3),
317317 restaurants, bars, and retail establishments;
318318 (4) for a municipality described by Subsection (b)(4):
319319 (A) restaurants, bars, and retail
320320 establishments; and
321321 (B) swimming pools and swimming facilities owned
322322 or operated by the related qualified hotel;
323323 (4-a) for a municipality described by Subsection
324324 (b)(4-a):
325325 (A) restaurants, bars, and retail
326326 establishments; and
327327 (B) swimming pools and swimming facilities owned
328328 or operated by the related qualified hotel;
329329 (5) for a municipality described by Subsection (b)(5),
330330 restaurants, bars, and retail establishments;
331331 (6) for a municipality described by Subsection (b)(6),
332332 restaurants, bars, and retail establishments;
333333 (7) for a municipality described by Subsection (b)(7),
334334 restaurants, bars, and retail establishments;
335335 (8) for a municipality described by Subsection (b)(8),
336336 restaurants, bars, and retail establishments;
337337 (9) for a municipality described by Subsection (b)(9),
338338 restaurants, bars, and retail establishments;
339339 (10) for a municipality described by Subsection
340340 (b)(10):
341341 (A) restaurants, bars, and retail
342342 establishments; and
343343 (B) swimming pools and swimming facilities owned
344344 or operated by the related qualified hotel;
345345 (11) for a municipality described by Subsection
346346 (b)(11):
347347 (A) restaurants, bars, and retail
348348 establishments; and
349349 (B) swimming pools and swimming facilities owned
350350 or operated by the related qualified hotel; [and]
351351 (12) for a municipality described by Subsection
352352 (b)(12):
353353 (A) restaurants, bars, and retail
354354 establishments; and
355355 (B) swimming pools and swimming facilities owned
356356 or operated by the related qualified hotel; and
357357 (13) for a municipality described by Subsection
358358 (b)(13):
359359 (A) restaurants, bars, music venues, museums,
360360 and retail establishments; and
361361 (B) swimming pools and swimming facilities owned
362362 or operated by the related qualified hotel.
363363 (d) Subject to Subsections (d-1) and [Subsection] (e), in
364364 addition to the revenue to which the municipality is entitled under
365365 Section 351.156, a municipality to which this section applies is
366366 entitled to receive the revenue derived from the following taxes
367367 generated, paid, and collected from a qualified establishment
368368 located in the municipality:
369369 (1) the sales and use tax imposed under Chapter 151;
370370 and
371371 (2) the mixed beverage tax issued under Section
372372 183.051, if the political subdivision that is entitled to receive
373373 the revenue from the tax agrees in writing to the municipality
374374 receiving that revenue.
375375 (d-1) A municipality described by Subsection (b)(13) is
376376 entitled to receive 75 percent of the additional revenue described
377377 by Subsection (d).
378378 SECTION 7. Section 351.158, Tax Code, is amended to read as
379379 follows:
380380 Sec. 351.158. PERIOD OF ENTITLEMENT. (a) A municipality is
381381 entitled to receive revenue as provided by Sections 351.156 and
382382 351.157 until the 10th anniversary of the date the qualified hotel
383383 to which the entitlement relates is open for initial occupancy.
384384 (b) Notwithstanding Subsection (a), a municipality
385385 described by Section 351.152(46) is entitled to receive revenue as
386386 provided by Sections 351.156 and 351.157 until the 20th anniversary
387387 of the date the qualified hotel to which the entitlement relates is
388388 open for initial occupancy.
389389 SECTION 8. Subchapter B, Chapter 352, Tax Code, is amended
390390 by adding Section 352.1065 to read as follows:
391391 Sec. 352.1065. USE OF REVENUE: CERTAIN COUNTIES BORDERING
392392 MEXICO AND GULF OF MEXICO. (a) This section applies only to a
393393 county that:
394394 (1) is authorized by Section 352.002(a)(11) to impose
395395 a tax under this chapter; and
396396 (2) borders the Gulf of Mexico and the United Mexican
397397 States.
398398 (b) In addition to the purposes authorized by this chapter
399399 and for the public purpose of encouraging the economic development
400400 of this state, a county to which this section applies may enter into
401401 an agreement with a municipality that is the county seat of the
402402 county to pledge not more than 75 percent of the revenue derived
403403 from the tax imposed by the county under this chapter and collected
404404 by hotels located in the municipality for the payment of bonds or
405405 other obligations, including contractual obligations, for which
406406 the municipality has pledged or committed revenue under Section
407407 351.155.
408408 (c) A county that uses revenue in the manner described by
409409 Subsection (b) must use at least 10 percent of the revenue derived
410410 from the tax authorized under this chapter for the purposes stated
411411 in Section 351.101(a)(3).
412412 SECTION 9. This Act takes effect immediately if it receives
413413 a vote of two-thirds of all the members elected to each house, as
414414 provided by Section 39, Article III, Texas Constitution. If this
415415 Act does not receive the vote necessary for immediate effect, this
416416 Act takes effect September 1, 2023.