Texas 2023 - 88th Regular

Texas House Bill HB3727 Compare Versions

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1	1	H.B. No. 3727
2	2
3	3
4	4	AN ACT
5	5	relating to municipal and county hotel occupancy taxes.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Sections 351.001(2), (6), (8), and (10), Tax
8	8	Code, are amended to read as follows:
9	9	(2) "Convention center facilities" or "convention
10	10	center complex" means facilities that are primarily used to host
11	11	conventions and meetings. The term means civic centers, civic
12	12	center buildings, auditoriums, exhibition halls, and coliseums
13	13	that are owned by the municipality or other governmental entity or
14	14	that are managed in whole or part by the municipality. In a
15	15	municipality with a population of 1.5 million or more, "convention
16	16	center facilities" or "convention center complex" means civic
17	17	centers, civic center buildings, auditoriums, exhibition halls,
18	18	and coliseums that are owned by the municipality or other
19	19	governmental entity or that are managed in part by the
20	20	municipality, hotels owned by the municipality or a nonprofit
21	21	municipally sponsored local government corporation created under
22	22	Chapter 431, Transportation Code, within 1,000 feet of a convention
23	23	center owned by the municipality, or a historic hotel owned by the
24	24	municipality or a nonprofit municipally sponsored local government
25	25	corporation created under Chapter 431, Transportation Code, within
26	26	one mile of a convention center owned by the municipality. The term
27	27	includes parking areas or facilities that are for the parking or
28	28	storage of conveyances and that are located at or within 1,500 feet
29	29	of the [in the vicinity of other] convention center facilities. The
30	30	term also includes a hotel owned by or located on land that is owned
31	31	by an eligible central municipality or by a nonprofit corporation
32	32	acting on behalf of an eligible central municipality and that is
33	33	located within 1,000 feet of a convention center facility owned by
34	34	the municipality. The term also includes a hotel that is owned in
35	35	part by an eligible central municipality described by Subdivision
36	36	(7)(D) and that is located within 1,000 feet of a convention center
37	37	facility. For purposes of this subdivision, "meetings" means
38	38	gatherings [of people] that:
39	39	(A) are attended by:
40	40	(i) tourists; or
41	41	(ii) individuals who spend the night at a
42	42	hotel or attend a meeting at a hotel; and
43	43	(B) enhance and promote tourism and the
44	44	convention and hotel industry.
45	45	(6) "Tourist" means an individual who travels from the
46	46	individual's residence to a different municipality, county, state,
47	47	or country for business, pleasure, recreation, education, or
48	48	culture.
49	49	(8) "Visitor information center" or "tourism
50	50	information center" means a building or a portion of a building that
51	51	is primarily used to distribute or disseminate information to
52	52	tourists.
53	53	(10) "Multiuse facility" means a facility at which the
54	54	majority of events attract tourists who substantially increase
55	55	economic activity at hotels in the municipality in which the
56	56	facility is located. ["Revenue" includes any interest derived from
57	57	the revenue.]
58	58	SECTION 2. Section 351.009, Tax Code, is amended to read as
59	59	follows:
60	60	Sec. 351.009. ANNUAL REPORT TO COMPTROLLER. (a) Not
61	61	later than March 1 [February 20] of each year, a municipality that
62	62	imposes the tax authorized by this chapter shall report to the
63	63	comptroller:
64	64	(1) the rate of:
65	65	(A) the tax imposed by the municipality under
66	66	this chapter; and
67	67	(B) if applicable, the tax imposed by the
68	68	municipality under Subchapter H, Chapter 334, Local Government
69	69	Code;
70	70	(2) the amount of revenue collected during the
71	71	municipality's preceding fiscal year from:
72	72	(A) the tax imposed by the municipality under
73	73	this chapter; and
74	74	(B) if applicable, the tax imposed by the
75	75	municipality under Subchapter H, Chapter 334, Local Government
76	76	Code; [and]
77	77	(3) the amount and percentage of the revenue described
78	78	by Subdivision (2)(A) allocated by the municipality to each use
79	79	authorized by this chapter for which the municipality used the
80	80	revenue [described by Sections 351.101(a)(1), (2), (3), (4), (5),
81	81	and (9)] during the municipality's preceding fiscal year, stated
82	82	separately as an amount and percentage for each applicable use; and
83	83	(4) the total amount of any revenue described by
84	84	Subdivision (2)(A) collected in any preceding fiscal year of the
85	85	municipality that has not yet been spent by the municipality and the
86	86	amount of that unexpended revenue, if any, that remains in the
87	87	municipality's possession in the fiscal year in which the report is
88	88	due [of those subdivisions].
89	89	(b) The municipality must make the report required by this
90	90	section by[:
91	91	[(1)] submitting the report to the comptroller on a
92	92	form prescribed by the comptroller[; or
93	93	[(2) providing the comptroller a direct link to, or a
94	94	clear statement describing the location of, the information
95	95	required to be reported that is posted on the Internet website of
96	96	the municipality].
97	97	(c) The [Subject to Subsection (b)(2), the] comptroller
98	98	shall prescribe the form a municipality must use for the report
99	99	required to be submitted under this section.
100	100	(d) A municipality that is required to make a report to the
101	101	comptroller under this section may use a portion of the revenue
102	102	described by Subsection (a)(2)(A) for the costs incurred by the
103	103	municipality in making and submitting the report. The amount of
104	104	revenue a municipality may use each year for the purpose authorized
105	105	by this subsection may not exceed:
106	106	(1) $1,000 if the municipality has a population of
107	107	less than 10,000; or
108	108	(2) $2,500 if the municipality has a population of
109	109	10,000 or more.
110	110	(e) The comptroller may adopt rules necessary to administer
111	111	this section.
112	112	SECTION 3. Section 351.101, Tax Code, is amended by adding
113	113	Subsection (f-1) to read as follows:
114	114	(f-1) A municipality may not use municipal hotel occupancy
115	115	tax revenue for a visitor information center under Subsection
116	116	(a)(1) to acquire a site for, construct, improve, enlarge, equip,
117	117	repair, staff, operate, or maintain any part of a building or
118	118	facility that is not primarily used to distribute or disseminate
119	119	tourism-related information to tourists.
120	120	SECTION 4. Section 351.1021(a)(3), Tax Code, is amended to
121	121	read as follows:
122	122	(3) "Multipurpose convention center facility project"
123	123	means a project that consists of a hotel owned by an eligible
124	124	municipality or another person and a multipurpose convention center
125	125	facility, the nearest exterior wall of which is located not more
126	126	than 2,500 feet from the nearest exterior wall of the hotel. A
127	127	multipurpose convention center facility project may include:
128	128	(A) each new or existing business located in the
129	129	municipality, regardless of who owns the business or the property
130	130	on which the business is located, the nearest exterior wall of which
131	131	is located not more than 2,500 feet from the nearest exterior wall
132	132	of the multipurpose convention center facility or the hotel that is
133	133	part of the project;
134	134	(B) a parking shuttle or transportation system
135	135	used primarily by tourists; and
136	136	(C) any parking area or structure located in the
137	137	municipality, regardless of who owns the area or structure or the
138	138	property on which the area or structure is located, the nearest
139	139	property line of which is located not more than two miles from the
140	140	nearest exterior wall of the multipurpose convention center
141	141	facility.
142	142	SECTION 5. Sections 351.103(a), (b), and (c), Tax Code, are
143	143	amended to read as follows:
144	144	(a) A municipality [At least 50 percent of the hotel
145	145	occupancy tax revenue collected by a municipality with a population
146	146	of 200,000 or greater must be allocated for the purposes provided by
147	147	Section 351.101(a)(3). For municipalities] with a population of
148	148	less than 200,000 shall allocate[, allocations] for the purposes
149	149	provided by Section 351.101(a)(3) an amount of hotel occupancy tax
150	150	revenue collected by the municipality that is [are as follows:
151	151	[(1) if the tax rate in a municipality is not more than
152	152	three percent of the cost paid for a room, not less than the amount
153	153	of revenue received by the municipality from the tax at a rate of
154	154	one-half of one percent of the cost of the room; or
155	155	[(2) if the tax in a municipality exceeds three
156	156	percent of the cost of a room,] not less than the amount of revenue
157	157	received by the municipality from the tax at a rate of one percent
158	158	of the cost of a room. [This subsection does not apply to a
159	159	municipality, regardless of population, that before October 1,
160	160	1989, adopted an ordinance providing for the allocation of an
161	161	amount in excess of 50 percent of the hotel occupancy tax revenue
162	162	collected by the municipality for one or more specific purposes
163	163	provided by Section 351.101(a)(1) until the ordinance is repealed
164	164	or expires or until the revenue is no longer used for those specific
165	165	purposes in an amount in excess of 50 percent of the tax revenue.]
166	166	(b) A [Subsection (a) does not apply to a municipality in a
167	167	fiscal year of the municipality if the total amount of hotel
168	168	occupancy tax collected by the municipality in the most recent
169	169	calendar year that ends at least 90 days before the date the fiscal
170	170	year begins exceeds $2 million. A municipality excepted from the
171	171	application of Subsection (a) by this subsection shall allocate
172	172	hotel occupancy tax revenue by ordinance, consistent with the other
173	173	limitations of this section. The portion of the tax revenue
174	174	allocated by a] municipality with a population of more than 1.6
175	175	million shall allocate at least 23 percent of the hotel occupancy
176	176	tax revenue collected by the municipality for the purposes provided
177	177	by Section 351.101(a)(3) [may not be less than 23 percent], except
178	178	that the allocation is subject to and may not impair the authority
179	179	of the municipality to:
180	180	(1) pledge all or any portion of that tax revenue to
181	181	the payment of bonds as provided by Section 351.102(a) or bonds
182	182	issued to refund bonds secured by that pledge; or
183	183	(2) spend all or any portion of that tax revenue for
184	184	the payment of operation and maintenance expenses of convention
185	185	center facilities.
186	186	(c) Not more than 15 percent of the hotel occupancy tax
187	187	revenue collected by a municipality, other than a municipality
188	188	having a population of more than 1.6 million, or the amount of tax
189	189	received by the municipality at the rate of one percent of the cost
190	190	of a room, whichever is greater, may be used for the purposes
191	191	provided by Section 351.101(a)(4). Not more than 19.30 percent of
192	192	the hotel occupancy tax revenue collected by a municipality having
193	193	a population of more than 1.6 million, or the amount of tax received
194	194	by the municipality at the rate of one percent of the cost of a room,
195	195	whichever is greater, may be used for the purposes provided by
196	196	Section 351.101(a)(4). Not more than 15 percent of the hotel
197	197	occupancy tax revenue collected by a municipality [having a
198	198	population of more than 125,000] may be used for the purposes
199	199	provided by Section 351.101(a)(5). A municipality that before
200	200	January 1, 2023, adopted in accordance with state law an ordinance
201	201	providing for the allocation of an amount in excess of 15 percent of
202	202	the hotel occupancy tax revenue collected by the municipality for
203	203	one or more of the specific purposes provided by Section
204	204	351.101(a)(5) may allocate tax revenue as provided by that
205	205	ordinance until the ordinance is repealed or expires or until the
206	206	revenue is no longer used for those specific purposes.
207	207	SECTION 6. Section 351.110(c), Tax Code, is amended to read
208	208	as follows:
209	209	(c) This section does not authorize the use of revenue
210	210	derived from the tax imposed under this chapter for a
211	211	transportation system that serves the general public other than for
212	212	a system [that transports tourists as] described by Subsection (a)
213	213	that is primarily used by tourists.
214	214	SECTION 7. Section 351.152, Tax Code, is amended to read as
215	215	follows:
216	216	Sec. 351.152. APPLICABILITY. This subchapter applies only
217	217	to:
218	218	(1) a municipality described by Section
219	219	351.001(7)(B);
220	220	(2) a municipality described by Section
221	221	351.001(7)(D);
222	222	(3) a municipality described by Section
223	223	351.001(7)(E);
224	224	(4) a municipality described by Section
225	225	351.102(e)(3);
226	226	(5) a municipality that contains more than 75 percent
227	227	of the population of a county with a population of 1.5 million or
228	228	more;
229	229	(6) a municipality with a population of 150,000 or
230	230	more but less than 200,000 that is partially located in at least one
231	231	county with a population of 125,000 or more;
232	232	(7) a municipality with a population of 150,000 or
233	233	more but less than one million that is located in one county with a
234	234	population of 2.3 million or more;
235	235	(8) a municipality with a population of 180,000 or
236	236	more that:
237	237	(A) is located in two counties, each with a
238	238	population of 100,000 or more; and
239	239	(B) contains an American Quarter Horse Hall of
240	240	Fame and Museum;
241	241	(9) a municipality with a population of 96,000 or more
242	242	that is located in a county that borders Lake Palestine;
243	243	(10) a municipality with a population of 96,000 or
244	244	more that is located in a county that contains the headwaters of the
245	245	San Gabriel River;
246	246	(11) a municipality with a population of 99,900 or
247	247	more but less than 111,000 that is located in a county with a
248	248	population of 135,000 or more;
249	249	(12) a municipality with a population of 110,000 or
250	250	more but less than 135,000 at least part of which is located in a
251	251	county with a population of less than 135,000;
252	252	(13) a municipality with a population of 9,000 or more
253	253	but less than 10,000 that is located in two counties, each of which
254	254	has a population of 662,000 or more and a southern border with a
255	255	county with a population of 2.3 million or more;
256	256	(14) a municipality with a population of 200,000 or
257	257	more but less than 300,000 that contains a component institution of
258	258	the Texas Tech University System;
259	259	(15) a municipality with a population of 95,000 or
260	260	more that:
261	261	(A) is located in more than one county; and
262	262	(B) borders Lake Lewisville;
263	263	(16) a municipality with a population of 45,000 or
264	264	more that:
265	265	(A) contains a portion of Cedar Hill State Park;
266	266	(B) is located in two counties, one of which has a
267	267	population of two million or more and one of which has a population
268	268	of 149,000 or more; and
269	269	(C) has adopted a capital improvement plan for
270	270	the construction or expansion of a convention center facility;
271	271	(17) a municipality with a population of less than
272	272	6,000 that:
273	273	(A) is almost wholly located in a county with a
274	274	population of 600,000 or more that is adjacent to a county with a
275	275	population of two million or more;
276	276	(B) is partially located in a county with a
277	277	population of 1.8 million or more that is adjacent to a county with
278	278	a population of two million or more;
279	279	(C) has a visitor center and museum located in a
280	280	19th-century rock building in the municipality's downtown; and
281	281	(D) has a waterpark open to the public;
282	282	(18) a municipality with a population of 56,000 or
283	283	more that:
284	284	(A) borders Lake Ray Hubbard; and
285	285	(B) is located in two counties, one of which has a
286	286	population of less than 80,000;
287	287	(19) a municipality with a population of 83,000 or
288	288	more that:
289	289	(A) borders Clear Lake; and
290	290	(B) is primarily located in a county with a
291	291	population of less than 300,000;
292	292	(20) a municipality with a population of less than
293	293	2,000 that:
294	294	(A) is located adjacent to a bay connected to the
295	295	Gulf of Mexico;
296	296	(B) is located in a county with a population of
297	297	290,000 or more that is adjacent to a county with a population of
298	298	four million or more; and
299	299	(C) has a boardwalk on the bay;
300	300	(21) a municipality with a population of 75,000 or
301	301	more that:
302	302	(A) is located wholly in one county with a
303	303	population of 575,000 or more that is adjacent to a county with a
304	304	population of four million or more; and
305	305	(B) has adopted a capital improvement plan for
306	306	the construction or expansion of a convention center facility;
307	307	(22) a municipality with a population of less than
308	308	75,000 that is located in three counties, at least one of which has
309	309	a population of four million or more;
310	310	(23) an eligible coastal municipality with a
311	311	population of 3,000 or more but less than 5,000;
312	312	(24) a municipality with a population of 90,000 or
313	313	more but less than 150,000 that:
314	314	(A) is located in three counties; and
315	315	(B) contains a branch campus of a component
316	316	institution of the University of Houston System;
317	317	(25) a municipality that is:
318	318	(A) primarily located in a county with a
319	319	population of four million or more; and
320	320	(B) connected by a bridge to a municipality
321	321	described by Subdivision (20);
322	322	(26) a municipality with a population of 20,000 or
323	323	more but less than 25,000 that:
324	324	(A) contains a portion of Mustang Bayou; and
325	325	(B) is wholly located in a county with a
326	326	population of less than 500,000;
327	327	(27) a municipality with a population of 70,000 or
328	328	more but less than 90,000 that is located in two counties, one of
329	329	which has a population of four million or more and the other of
330	330	which has a population of less than 50,000;
331	331	(28) a municipality with a population of 10,000 or
332	332	more that:
333	333	(A) is wholly located in a county with a
334	334	population of four million or more; and
335	335	(B) has a city hall located less than three miles
336	336	from a space center operated by an agency of the federal government;
337	337	(29) a municipality that is the county seat of a
338	338	county:
339	339	(A) through which the Pedernales River flows; and
340	340	(B) in which the birthplace of a president of the
341	341	United States is located;
342	342	(30) a municipality that contains a portion of U.S.
343	343	Highway 79 and State Highway 130;
344	344	(31) a municipality with a population of 48,000 or
345	345	more but less than 95,000 that is located in two counties, one of
346	346	which has a population of 900,000 or more but less than 1.7 million;
347	347	(32) a municipality with a population of less than
348	348	25,000 that contains a museum of Western American art;
349	349	(33) a municipality with a population of 50,000 or
350	350	more that is the county seat of a county that contains a portion of
351	351	the Sam Houston National Forest;
352	352	(34) a municipality with a population of less than
353	353	25,000 that:
354	354	(A) contains a cultural heritage museum; and
355	355	(B) is located in a county that borders the
356	356	United Mexican States and the Gulf of Mexico;
357	357	(35) a municipality that is the county seat of a county
358	358	that:
359	359	(A) has a population of 115,000 or more;
360	360	(B) is adjacent to a county with a population of
361	361	1.8 million or more; and
362	362	(C) hosts an annual peach festival;
363	363	(36) a municipality that is the county seat of a county
364	364	that:
365	365	(A) has a population of 585,000 or more; and
366	366	(B) is adjacent to a county with a population of
367	367	four million or more;
368	368	(37) a municipality with a population of less than
369	369	10,000 that:
370	370	(A) contains a component university of The Texas
371	371	A&M University System; and
372	372	(B) is located in a county adjacent to a county
373	373	that borders Oklahoma;
374	374	(38) a municipality with a population of less than
375	375	6,100 that:
376	376	(A) is located in two counties, each of which has
377	377	a population of 600,000 or more but less than two million; and
378	378	(B) hosts an annual Cajun Festival;
379	379	(39) a municipality with a population of 13,000 or
380	380	more that:
381	381	(A) is located on an international border; and
382	382	(B) is located in a county:
383	383	(i) with a population of less than 400,000;
384	384	and
385	385	(ii) in which at least one World Birding
386	386	Center site is located;
387	387	(40) a municipality with a population of 4,000 or more
388	388	that:
389	389	(A) is located on an international border; and
390	390	(B) is located not more than five miles from a
391	391	state historic site that serves as a visitor center for a state park
392	392	that contains 300,000 or more acres of land;
393	393	(41) a municipality with a population of 36,000 or
394	394	more that is adjacent to at least two municipalities described by
395	395	Subdivision (15);
396	396	(42) a municipality with a population of 28,000 or
397	397	more in which is located a historic railroad depot and heritage
398	398	center;
399	399	(43) a municipality located in a county that has a
400	400	population of not more than 300,000 and in which a component
401	401	university of the University of Houston System is located;
402	402	(44) a municipality with a population of less than
403	403	500,000 that is:
404	404	(A) located in two counties; and
405	405	(B) adjacent to a municipality described by
406	406	Subdivision (31); [and]
407	407	(45) a municipality that:
408	408	(A) has a population of more than 67,000; and
409	409	(B) is located in two counties with 90 percent of
410	410	the municipality's territory located in a county with a population
411	411	of at least 580,000, and the remaining territory located in a county
412	412	with a population of at least four million; and
413	413	(46) a municipality that is the county seat of a
414	414	county:
415	415	(A) through which the Brazos River flows; and
416	416	(B) in which a national monument is located.
417	417	SECTION 8. Subchapter C, Chapter 351, Tax Code, is amended
418	418	by adding Sections 351.161, 351.162, and 351.163 to read as
419	419	follows:
420	420	Sec. 351.161. APPLICATION OF OTHER LAW. This subchapter
421	421	may not be construed as authorizing the taking of private property
422	422	for economic development purposes in a manner inconsistent with the
423	423	requirements of Section 17, Article I, Texas Constitution, or
424	424	Section 2206.001, Government Code.
425	425	Sec. 351.162. RECAPTURE OF LOST STATE TAX REVENUE FROM
426	426	CERTAIN MUNICIPALITIES. (a) This section:
427	427	(1) applies only to a qualified project that is first
428	428	commenced on or after:
429	429	(A) January 1, 2024, unless Paragraph (B) applies
430	430	to the qualified project; or
431	431	(B) January 1, 2027, if the qualified project was
432	432	authorized before January 1, 2023, by a municipality with a
433	433	population of 175,000 or more; and
434	434	(2) notwithstanding Subdivision (1), does not apply to
435	435	a qualified project that is the subject of an economic development
436	436	agreement authorized by Chapter 380, Local Government Code, entered
437	437	into on or before January 1, 2022.
438	438	(b) On the 20th anniversary of the date a hotel designated
439	439	as a qualified hotel by a municipality as part of a qualified
440	440	project to which this section applies is open for initial
441	441	occupancy, the comptroller shall determine:
442	442	(1) the total amount of state tax revenue received
443	443	under Section 351.156 and, if applicable, under Section 351.157 by
444	444	the municipality from the qualified project during the period for
445	445	which the municipality was entitled to receive that revenue; and
446	446	(2) the total amount of state tax revenue described by
447	447	Subdivision (1) received by the state during the period beginning
448	448	on the 10th anniversary of the date the qualified hotel opened for
449	449	initial occupancy and ending on the 20th anniversary of that date
450	450	from the same sources from which the municipality received the
451	451	revenue described by Subdivision (1).
452	452	(c) If the amount determined under Subsection (b)(1)
453	453	exceeds the amount determined under Subsection (b)(2), the
454	454	comptroller shall promptly provide written notice to the
455	455	municipality stating that the municipality must remit to the
456	456	comptroller the difference between those two amounts in the manner
457	457	provided by this subsection. The municipality shall, using money
458	458	lawfully available to the municipality for the purpose, remit
459	459	monthly payments to the comptroller in an amount equal to the total
460	460	amount of municipal hotel occupancy tax revenue received by the
461	461	municipality from the qualified hotel in the preceding month until
462	462	the amount remitted to the comptroller equals the total amount due
463	463	as stated in the notice. The first payment required under this
464	464	subsection must be made not later than the 30th day after the date
465	465	the municipality receives the notice from the comptroller.
466	466	Subsequent payments are due on the 20th day of each month until the
467	467	total amount stated in the notice is paid. The comptroller shall
468	468	prescribe the procedure a municipality must use to remit a payment
469	469	required by this subsection to the comptroller.
470	470	(d) The comptroller shall deposit revenue received under
471	471	this section in the manner prescribed by Section 156.251.
472	472	Sec. 351.163. REPORT ON QUALIFIED PROJECTS. (a) Not later
473	473	than December 1 of each even-numbered year, the comptroller shall
474	474	prepare a report on the status of each qualified project.
475	475	(b) The report must include, for each qualified project:
476	476	(1) the location and a description of the project,
477	477	including the current status of the project;
478	478	(2) the number of qualified hotels and qualified
479	479	convention center facilities associated with the project;
480	480	(3) the total amount of tax revenue received by a
481	481	municipality under Section 351.156 and, if applicable, Section
482	482	351.157 as a result of the project;
483	483	(4) the amount of state tax revenue generated by the
484	484	project that has been received by the state after the period of
485	485	entitlement for the project as prescribed by Section 351.158 has
486	486	ended; and
487	487	(5) whether the municipality is required to remit
488	488	payments to the comptroller under Section 351.162 as a result of the
489	489	project.
490	490	(c) The comptroller may include in the report any additional
491	491	information the comptroller determines is necessary to evaluate the
492	492	effect of each qualified project on the economy of this state.
493	493	(d) The comptroller shall:
494	494	(1) post a copy of the report on the comptroller's
495	495	Internet website; and
496	496	(2) provide a copy of the report to the lieutenant
497	497	governor, the speaker of the house of representatives, and each
498	498	other member of the legislature.
499	499	SECTION 9. Section 352.009, Tax Code, is amended to read as
500	500	follows:
501	501	Sec. 352.009. ANNUAL REPORT TO COMPTROLLER. (a) Not
502	502	later than March 1 [February 20] of each year, a county that imposes
503	503	the tax authorized by this chapter shall report to the comptroller:
504	504	(1) the rate of:
505	505	(A) the tax imposed by the county under this
506	506	chapter; and
507	507	(B) if applicable, the tax imposed by the county
508	508	under Subchapter H, Chapter 334, Local Government Code; [and]
509	509	(2) the amount of revenue collected during the
510	510	county's preceding fiscal year from:
511	511	(A) the tax imposed by the county under this
512	512	chapter; and
513	513	(B) if applicable, the tax imposed by the county
514	514	under Subchapter H, Chapter 334, Local Government Code;
515	515	(3) the amount and percentage of the revenue described
516	516	by Subdivision (2)(A) allocated by the county to each use
517	517	authorized by this chapter for which the county used the revenue
518	518	during the county's preceding fiscal year, stated separately as an
519	519	amount and percentage for each applicable use; and
520	520	(4) the total amount of any revenue described by
521	521	Subdivision (2)(A) collected in any preceding fiscal year of the
522	522	county that has not yet been spent by the county and the amount of
523	523	that unexpended revenue, if any, that remains in the county's
524	524	possession in the fiscal year in which the report is due.
525	525	(b) The county must make the report required by this section
526	526	by[:
527	527	[(1)] submitting the report to the comptroller on a
528	528	form prescribed by the comptroller[; or
529	529	[(2) providing the comptroller a direct link to, or a
530	530	clear statement describing the location of, the information
531	531	required to be reported that is posted on the Internet website of
532	532	the county].
533	533	(c) The [Subject to Subsection (b)(2), the] comptroller
534	534	shall prescribe the form a county must use for the report required
535	535	to be submitted under this section.
536	536	(d) A county that is required to make a report to the
537	537	comptroller under this section may use a portion of the revenue
538	538	described by Subsection (a)(2)(A) for the costs incurred by the
539	539	county in making and submitting the report. The amount of revenue a
540	540	county may use each year for the purpose authorized by this
541	541	subsection may not exceed:
542	542	(1) $1,000 if the county has a population of less than
543	543	10,000; or
544	544	(2) $2,500 if the county has a population of 10,000 or
545	545	more.
546	546	(e) The comptroller may adopt rules necessary to administer
547	547	this section.
548	548	SECTION 10. The following provisions of the Tax Code are
549	549	repealed:
550	550	(1) Sections 351.103(d) and (e); and
551	551	(2) Section 351.110(b).
552	552	SECTION 11. The comptroller of public accounts shall
553	553	prescribe the form of the report required under Sections 351.009
554	554	and 352.009, Tax Code, as amended by this Act, not later than
555	555	January 1, 2024. A municipality or county required to make a report
556	556	under those sections must submit the 2024 report using the form
557	557	prescribed by the comptroller under this section.
558	558	SECTION 12. This Act takes effect immediately if it
559	559	receives a vote of two-thirds of all the members elected to each
560	560	house, as provided by Section 39, Article III, Texas Constitution.
561	561	If this Act does not receive the vote necessary for immediate
562	562	effect, this Act takes effect September 1, 2023.
563	563	______________________________ ______________________________
564	564	President of the Senate Speaker of the House
565	565	I certify that H.B. No. 3727 was passed by the House on May 6,
566	566	2023, by the following vote: Yeas 112, Nays 22, 2 present, not
567	567	voting; and that the House concurred in Senate amendments to H.B.
568	568	No. 3727 on May 25, 2023, by the following vote: Yeas 116, Nays 18,
569	569	2 present, not voting.
570	570	______________________________
571	571	Chief Clerk of the House
572	572	I certify that H.B. No. 3727 was passed by the Senate, with
573	573	amendments, on May 23, 2023, by the following vote: Yeas 26, Nays
574	574	5.
575	575	______________________________
576	576	Secretary of the Senate
577	577	APPROVED: __________________
578	578	Date
579	579	__________________
580	580	Governor