| 1 | 1 | | 88R13377 CJD-F |
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| 2 | 2 | | By: Longoria H.B. No. 4563 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of certain municipalities to authorize |
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| 8 | 8 | | and finance certain venue projects and to use municipal hotel |
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| 9 | 9 | | occupancy tax revenue for certain of those projects; authorizing |
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| 10 | 10 | | the imposition of a tax. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 334.0082(a), Local Government Code, is |
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| 13 | 13 | | amended to read as follows: |
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| 14 | 14 | | (a) This section applies only to a municipality that: |
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| 15 | 15 | | (1) has a population of at least 176,000 that borders |
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| 16 | 16 | | the Rio Grande, and that approved a sports and community venue |
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| 17 | 17 | | project before January 1, 2009; [or] |
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| 18 | 18 | | (2) is located in a county adjacent to the |
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| 19 | 19 | | Texas-Mexico border if: |
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| 20 | 20 | | (A) the county has a population of at least |
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| 21 | 21 | | 500,000; |
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| 22 | 22 | | (B) the county does not have a city located |
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| 23 | 23 | | within it that has a population of at least 500,000; and |
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| 24 | 24 | | (C) the municipality is the largest municipality |
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| 25 | 25 | | in the county described by this subdivision; or |
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| 26 | 26 | | (3) has a population of not more than 25,000, that |
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| 27 | 27 | | contains a cultural heritage museum, and that is located in a county |
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| 28 | 28 | | that borders the United Mexican States and the Gulf of Mexico. |
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| 29 | 29 | | SECTION 2. Section 351.001(7), Tax Code, is amended to read |
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| 30 | 30 | | as follows: |
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| 31 | 31 | | (7) "Eligible central municipality" means: |
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| 32 | 32 | | (A) a municipality with a population of more than |
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| 33 | 33 | | 140,000 but less than 1.5 million that is located in a county with a |
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| 34 | 34 | | population of one million or more and that has adopted a capital |
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| 35 | 35 | | improvement plan for the construction or expansion of a convention |
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| 36 | 36 | | center facility; |
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| 37 | 37 | | (B) a municipality with a population of 250,000 |
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| 38 | 38 | | or more that: |
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| 39 | 39 | | (i) is located wholly or partly on a barrier |
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| 40 | 40 | | island that borders the Gulf of Mexico; |
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| 41 | 41 | | (ii) is located in a county with a |
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| 42 | 42 | | population of 300,000 or more; and |
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| 43 | 43 | | (iii) has adopted a capital improvement |
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| 44 | 44 | | plan to expand an existing convention center facility; |
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| 45 | 45 | | (C) a municipality with a population of 116,000 |
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| 46 | 46 | | or more that: |
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| 47 | 47 | | (i) is located in two counties both of which |
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| 48 | 48 | | have a population of 660,000 or more; and |
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| 49 | 49 | | (ii) has adopted a capital improvement plan |
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| 50 | 50 | | for the construction or expansion of a convention center facility; |
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| 51 | 51 | | (D) a municipality with a population of less than |
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| 52 | 52 | | 50,000 that contains a general academic teaching institution that |
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| 53 | 53 | | is not a component institution of a university system, as those |
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| 54 | 54 | | terms are defined by Section 61.003, Education Code; [or] |
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| 55 | 55 | | (E) a municipality with a population of 640,000 |
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| 56 | 56 | | or more that: |
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| 57 | 57 | | (i) is located on an international border; |
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| 58 | 58 | | and |
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| 59 | 59 | | (ii) has adopted a capital improvement plan |
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| 60 | 60 | | for the construction or expansion of a convention center facility; |
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| 61 | 61 | | or |
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| 62 | 62 | | (F) a municipality that has a population of not |
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| 63 | 63 | | more than 25,000, that contains a cultural heritage museum, and |
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| 64 | 64 | | that is located in a county that borders the United Mexican States |
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| 65 | 65 | | and the Gulf of Mexico. |
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| 66 | 66 | | SECTION 3. Section 351.003, Tax Code, is amended by adding |
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| 67 | 67 | | Subsection (g) to read as follows: |
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| 68 | 68 | | (g) The rate in a municipality described by Section |
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| 69 | 69 | | 351.001(7)(F) may not exceed nine percent of the price paid for a |
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| 70 | 70 | | room. The municipality shall allocate for the construction, |
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| 71 | 71 | | expansion, maintenance, financing, operation, or debt service of a |
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| 72 | 72 | | convention center or multiuse facility all revenue received by the |
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| 73 | 73 | | municipality that is derived from the application of the tax at a |
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| 74 | 74 | | rate of more than seven percent of the price paid for a room in a |
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| 75 | 75 | | hotel. |
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| 76 | 76 | | SECTION 4. Section 351.101, Tax Code, is amended by adding |
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| 77 | 77 | | Subsection (t) to read as follows: |
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| 78 | 78 | | (t) In addition to other authorized uses, a municipality |
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| 79 | 79 | | described by Section 351.001(7)(F) may use revenue from the |
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| 80 | 80 | | municipal hotel occupancy tax to pay costs associated with the |
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| 81 | 81 | | construction, expansion, maintenance, financing, operation, or |
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| 82 | 82 | | debt service of a convention center or multiuse facility. |
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| 83 | 83 | | SECTION 5. This Act takes effect immediately if it receives |
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| 84 | 84 | | a vote of two-thirds of all the members elected to each house, as |
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| 85 | 85 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 86 | 86 | | Act does not receive the vote necessary for immediate effect, this |
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| 87 | 87 | | Act takes effect September 1, 2023. |
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