| 1 | 1 | | H.B. No. 5012 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the authority of certain municipalities to use certain |
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| 6 | 6 | | tax revenue for hotel and convention center projects and other |
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| 7 | 7 | | qualified projects. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 351.1015(a)(2), Tax Code, is amended to |
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| 10 | 10 | | read as follows: |
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| 11 | 11 | | (2) "Hotel-associated revenue" means the sum of: |
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| 12 | 12 | | (A) state tax revenue collected in a project |
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| 13 | 13 | | financing zone from all hotels located in the zone that would be |
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| 14 | 14 | | available to the owners of qualified hotel projects under Section |
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| 15 | 15 | | 151.429(h) if the hotels were qualified hotel projects, excluding |
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| 16 | 16 | | the amount of that revenue received by a municipality: |
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| 17 | 17 | | (i) under Section 351.156 or 351.157 in |
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| 18 | 18 | | connection with a qualified hotel located in the zone that exists on |
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| 19 | 19 | | the date the municipality designates the zone, except as provided |
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| 20 | 20 | | by Paragraph (B); or |
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| 21 | 21 | | (ii) under Section 351.102(c) for a hotel |
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| 22 | 22 | | project described by Section 351.102(b) and located in the zone |
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| 23 | 23 | | that exists on the date the municipality designates the zone; and |
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| 24 | 24 | | (B) tax revenue collected from all permittees |
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| 25 | 25 | | under Chapter 183 at hotels located in the zone, excluding revenue |
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| 26 | 26 | | disbursed by the comptroller under Section 183.051(b). |
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| 27 | 27 | | SECTION 2. Section 351.1015, Tax Code, is amended by |
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| 28 | 28 | | amending Subsections (b) and (e) and adding Subsection (j) to read |
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| 29 | 29 | | as follows: |
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| 30 | 30 | | (b) This section applies only to a qualified project located |
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| 31 | 31 | | in: |
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| 32 | 32 | | (1) a municipality with a population of at least |
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| 33 | 33 | | 650,000 but less than 750,000 according to the most recent federal |
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| 34 | 34 | | decennial census; |
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| 35 | 35 | | (2) a municipality described by Section |
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| 36 | 36 | | 351.001(7)(B); or |
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| 37 | 37 | | (3) a municipality described by Section 351.152(61). |
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| 38 | 38 | | (e) A municipality may pledge for the payment of bonds or |
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| 39 | 39 | | other obligations described by Subsection (d) the local revenue |
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| 40 | 40 | | from eligible tax proceeds as defined by Section 2303.5055(e), |
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| 41 | 41 | | Government Code, from hotels located in a project financing zone |
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| 42 | 42 | | that would be available to the owners of qualified hotel projects |
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| 43 | 43 | | under that section if the hotels were qualified hotel projects, |
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| 44 | 44 | | excluding any amount received by the municipality: |
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| 45 | 45 | | (1) in connection with a qualified hotel, as defined |
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| 46 | 46 | | by Section 351.151, located in the zone that exists on the date the |
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| 47 | 47 | | municipality designates the zone; or |
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| 48 | 48 | | (2) for a hotel project described by Section |
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| 49 | 49 | | 351.102(b) and located in the zone that exists on the date the |
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| 50 | 50 | | municipality designates the zone. |
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| 51 | 51 | | (j) For a municipality described by Subsection (b)(2) or |
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| 52 | 52 | | (3), the term "qualified project" also means a venue described by |
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| 53 | 53 | | Section 334.001(4)(A), Local Government Code, and any related |
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| 54 | 54 | | infrastructure. |
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| 55 | 55 | | SECTION 3. Section 351.152, Tax Code, is amended to read as |
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| 56 | 56 | | follows: |
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| 57 | 57 | | Sec. 351.152. APPLICABILITY. This subchapter applies only |
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| 58 | 58 | | to: |
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| 59 | 59 | | (1) a municipality described by Section |
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| 60 | 60 | | 351.001(7)(B); |
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| 61 | 61 | | (2) a municipality described by Section |
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| 62 | 62 | | 351.001(7)(D); |
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| 63 | 63 | | (3) a municipality described by Section |
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| 64 | 64 | | 351.001(7)(E); |
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| 65 | 65 | | (4) a municipality described by Section |
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| 66 | 66 | | 351.102(e)(3); |
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| 67 | 67 | | (5) a municipality that contains more than 70 [75] |
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| 68 | 68 | | percent of the population of a county with a population of 1.5 |
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| 69 | 69 | | million or more; |
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| 70 | 70 | | (6) a municipality with a population of 175,000 |
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| 71 | 71 | | [150,000] or more but less than 200,000 that is partially located in |
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| 72 | 72 | | at least one county with a population of 125,000 or more; |
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| 73 | 73 | | (7) a municipality with a population of 250,000 |
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| 74 | 74 | | [150,000] or more but less than one million that is located in one |
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| 75 | 75 | | county with a population of 2.5 [2.3] million or more; |
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| 76 | 76 | | (8) a municipality with a population of 180,000 or |
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| 77 | 77 | | more that: |
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| 78 | 78 | | (A) is located in two counties, each with a |
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| 79 | 79 | | population of 100,000 or more; and |
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| 80 | 80 | | (B) contains an American Quarter Horse Hall of |
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| 81 | 81 | | Fame and Museum; |
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| 82 | 82 | | (9) a municipality with a population of 96,000 or more |
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| 83 | 83 | | that is located in a county that borders Lake Palestine; |
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| 84 | 84 | | (10) a municipality with a population of 96,000 or |
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| 85 | 85 | | more that is located in a county that contains the headwaters of the |
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| 86 | 86 | | San Gabriel River; |
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| 87 | 87 | | (11) a municipality with a population of at least |
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| 88 | 88 | | 95,000 [99,900 or more but less than 111,000] that is located in a |
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| 89 | 89 | | county that is bisected by United States Highway 385 and has [with] |
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| 90 | 90 | | a population of not more than 170,000 [135,000 or more]; |
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| 91 | 91 | | (12) a municipality with a population of 110,000 or |
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| 92 | 92 | | more but less than 135,000 at least part of which is located in a |
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| 93 | 93 | | county with a population of less than 135,000; |
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| 94 | 94 | | (13) a municipality with a population of 28,000 |
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| 95 | 95 | | [9,000] or more but less than 31,000 [10,000] that is located in two |
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| 96 | 96 | | counties, each of which has a population of 900,000 [662,000] or |
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| 97 | 97 | | more and a southern border with a county with a population of 2.5 |
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| 98 | 98 | | [2.3] million or more; |
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| 99 | 99 | | (14) a municipality with a population of 200,000 or |
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| 100 | 100 | | more but less than 300,000 that contains a component institution of |
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| 101 | 101 | | the Texas Tech University System; |
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| 102 | 102 | | (15) a municipality with a population of 95,000 or |
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| 103 | 103 | | more that: |
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| 104 | 104 | | (A) is located in more than one county; and |
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| 105 | 105 | | (B) borders Lake Lewisville; |
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| 106 | 106 | | (16) a municipality with a population of 45,000 or |
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| 107 | 107 | | more that: |
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| 108 | 108 | | (A) contains a portion of Cedar Hill State Park; |
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| 109 | 109 | | (B) is located in two counties, one of which has a |
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| 110 | 110 | | population of 2.5 [two] million or more and one of which has a |
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| 111 | 111 | | population of 190,000 [149,000] or more; and |
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| 112 | 112 | | (C) has adopted a capital improvement plan for |
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| 113 | 113 | | the construction or expansion of a convention center facility; |
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| 114 | 114 | | (17) a municipality with a population of less than |
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| 115 | 115 | | 10,000 [6,000] that: |
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| 116 | 116 | | (A) is almost wholly located in a county with a |
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| 117 | 117 | | population of 900,000 [600,000] or more that is adjacent to a county |
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| 118 | 118 | | with a population of 2.5 [two] million or more; |
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| 119 | 119 | | (B) is partially located in a county with a |
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| 120 | 120 | | population of 2.1 [1.8] million or more that is adjacent to a county |
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| 121 | 121 | | with a population of 2.5 [two] million or more; |
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| 122 | 122 | | (C) has a visitor center and museum located in a |
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| 123 | 123 | | 19th-century rock building in the municipality's downtown; and |
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| 124 | 124 | | (D) has a waterpark open to the public; |
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| 125 | 125 | | (18) a municipality with a population of 60,000 |
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| 126 | 126 | | [56,000] or more that: |
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| 127 | 127 | | (A) borders Lake Ray Hubbard; and |
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| 128 | 128 | | (B) is located in two counties, one of which has a |
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| 129 | 129 | | population of less than 110,000 [80,000]; |
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| 130 | 130 | | (19) a municipality with a population of 110,000 |
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| 131 | 131 | | [83,000] or more that: |
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| 132 | 132 | | (A) borders Clear Lake; and |
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| 133 | 133 | | (B) is primarily located in a county with a |
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| 134 | 134 | | population of less than 355,000 [300,000]; |
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| 135 | 135 | | (20) a municipality with a population of less than |
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| 136 | 136 | | 2,000 that: |
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| 137 | 137 | | (A) is located adjacent to a bay connected to the |
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| 138 | 138 | | Gulf of Mexico; |
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| 139 | 139 | | (B) is located in a county with a population of |
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| 140 | 140 | | 290,000 or more that is adjacent to a county with a population of |
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| 141 | 141 | | four million or more; and |
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| 142 | 142 | | (C) has a boardwalk on the bay; |
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| 143 | 143 | | (21) a municipality with a population of 75,000 or |
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| 144 | 144 | | more that: |
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| 145 | 145 | | (A) is located wholly in one county with a |
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| 146 | 146 | | population of 800,000 [575,000] or more that is adjacent to a county |
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| 147 | 147 | | with a population of four million or more; and |
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| 148 | 148 | | (B) has adopted a capital improvement plan for |
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| 149 | 149 | | the construction or expansion of a convention center facility; |
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| 150 | 150 | | (22) a municipality with a population of less than |
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| 151 | 151 | | 70,000 [75,000] that is located in three counties, at least one of |
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| 152 | 152 | | which has a population of four million or more; |
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| 153 | 153 | | (23) an eligible coastal municipality with a |
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| 154 | 154 | | population of 2,900 [3,000] or more but less than 5,000; |
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| 155 | 155 | | (24) a municipality with a population of 90,000 or |
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| 156 | 156 | | more but less than 150,000 that: |
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| 157 | 157 | | (A) is located in three counties; and |
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| 158 | 158 | | (B) contains a branch campus of a component |
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| 159 | 159 | | institution of the University of Houston System; |
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| 160 | 160 | | (25) a municipality that is: |
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| 161 | 161 | | (A) primarily located in a county with a |
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| 162 | 162 | | population of four million or more; and |
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| 163 | 163 | | (B) connected by a bridge to a municipality |
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| 164 | 164 | | described by Subdivision (20); |
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| 165 | 165 | | (26) a municipality with a population of 25,000 |
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| 166 | 166 | | [20,000] or more but less than 30,000 [25,000] that: |
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| 167 | 167 | | (A) contains a portion of Mustang Bayou; and |
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| 168 | 168 | | (B) is wholly located in a county with a |
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| 169 | 169 | | population of less than 500,000; |
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| 170 | 170 | | (27) a municipality with a population of 70,000 or |
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| 171 | 171 | | more but less than 90,000 that is located in two counties, one of |
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| 172 | 172 | | which has a population of four million or more and the other of |
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| 173 | 173 | | which has a population of less than 50,000; |
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| 174 | 174 | | (28) a municipality with a population of 10,000 or |
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| 175 | 175 | | more that: |
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| 176 | 176 | | (A) is wholly located in a county with a |
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| 177 | 177 | | population of four million or more; and |
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| 178 | 178 | | (B) has a city hall located less than three miles |
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| 179 | 179 | | from a space center operated by an agency of the federal government; |
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| 180 | 180 | | (29) a municipality that is the county seat of a |
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| 181 | 181 | | county: |
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| 182 | 182 | | (A) through which the Pedernales River flows; and |
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| 183 | 183 | | (B) in which the birthplace of a president of the |
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| 184 | 184 | | United States is located; |
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| 185 | 185 | | (30) a municipality that contains a portion of U.S. |
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| 186 | 186 | | Highway 79 and State Highway 130; |
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| 187 | 187 | | (31) a municipality with a population of 70,000 |
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| 188 | 188 | | [48,000] or more but less than 115,000 [95,000] that is located in |
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| 189 | 189 | | two counties, one of which has a population of 1.1 million [900,000] |
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| 190 | 190 | | or more but less than 1.9 [1.7] million; |
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| 191 | 191 | | (32) a municipality with a population of less than |
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| 192 | 192 | | 25,000 that contains a museum of Western American art; |
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| 193 | 193 | | (33) a municipality with a population of 50,000 or |
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| 194 | 194 | | more that is the county seat of a county that contains a portion of |
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| 195 | 195 | | the Sam Houston National Forest; |
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| 196 | 196 | | (34) a municipality with a population of less than |
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| 197 | 197 | | 25,000 that: |
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| 198 | 198 | | (A) contains a cultural heritage museum; and |
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| 199 | 199 | | (B) is located in a county that borders the |
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| 200 | 200 | | United Mexican States and the Gulf of Mexico; |
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| 201 | 201 | | (35) a municipality that is the county seat of a county |
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| 202 | 202 | | that: |
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| 203 | 203 | | (A) has a population of 115,000 or more; |
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| 204 | 204 | | (B) is adjacent to a county with a population of |
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| 205 | 205 | | 2.1 [1.8] million or more; and |
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| 206 | 206 | | (C) hosts an annual peach festival; |
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| 207 | 207 | | (36) a municipality that is the county seat of a county |
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| 208 | 208 | | that: |
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| 209 | 209 | | (A) has a population of 800,000 [585,000] or |
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| 210 | 210 | | more; and |
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| 211 | 211 | | (B) is adjacent to a county with a population of |
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| 212 | 212 | | four million or more; |
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| 213 | 213 | | (37) a municipality with a population of less than |
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| 214 | 214 | | 10,000 that: |
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| 215 | 215 | | (A) contains a component university of The Texas |
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| 216 | 216 | | A&M University System; and |
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| 217 | 217 | | (B) is located in a county adjacent to a county |
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| 218 | 218 | | that borders Oklahoma; |
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| 219 | 219 | | (38) a municipality with a population of less than |
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| 220 | 220 | | 17,000 [6,100] that: |
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| 221 | 221 | | (A) is located in two counties, each of which has |
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| 222 | 222 | | a population of 900,000 [600,000] or more but less than two million; |
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| 223 | 223 | | and |
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| 224 | 224 | | (B) hosts an annual Cajun Festival; |
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| 225 | 225 | | (39) a municipality with a population of 13,000 or |
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| 226 | 226 | | more that: |
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| 227 | 227 | | (A) is located on an international border; and |
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| 228 | 228 | | (B) is located in a county: |
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| 229 | 229 | | (i) with a population of less than 400,000; |
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| 230 | 230 | | and |
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| 231 | 231 | | (ii) in which at least one World Birding |
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| 232 | 232 | | Center site is located; |
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| 233 | 233 | | (40) a municipality with a population of 3,200 [4,000] |
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| 234 | 234 | | or more that: |
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| 235 | 235 | | (A) is located on an international border; and |
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| 236 | 236 | | (B) is located not more than five miles from a |
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| 237 | 237 | | state historic site that serves as a visitor center for a state park |
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| 238 | 238 | | that contains 300,000 or more acres of land; |
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| 239 | 239 | | (41) a municipality with a population of 36,000 or |
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| 240 | 240 | | more that is adjacent to at least two municipalities described by |
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| 241 | 241 | | Subdivision (15); |
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| 242 | 242 | | (42) a municipality with a population of 28,000 or |
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| 243 | 243 | | more that is located in a county with a population of 240,000 or |
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| 244 | 244 | | more that contains a portion of the Blanco River and in which is |
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| 245 | 245 | | located a historic railroad depot and heritage center; |
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| 246 | 246 | | (43) a municipality located in a county that has a |
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| 247 | 247 | | population of not more than 300,000 and in which a component |
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| 248 | 248 | | university of the University of Houston System is located; |
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| 249 | 249 | | (44) a municipality with a population of less than |
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| 250 | 250 | | 500,000 that is: |
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| 251 | 251 | | (A) located in two counties; and |
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| 252 | 252 | | (B) adjacent to a municipality described by |
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| 253 | 253 | | Subdivision (31); [and] |
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| 254 | 254 | | (45) a municipality that: |
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| 255 | 255 | | (A) has a population of more than 67,000; and |
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| 256 | 256 | | (B) is located in two counties with 90 percent of |
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| 257 | 257 | | the municipality's territory located in a county with a population |
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| 258 | 258 | | of at least 800,000 [580,000], and the remaining territory located |
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| 259 | 259 | | in a county with a population of at least four million; |
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| 260 | 260 | | (46) a municipality that: |
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| 261 | 261 | | (A) has a population of 100,000 or more; and |
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| 262 | 262 | | (B) is wholly located in, but is not the county |
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| 263 | 263 | | seat of, a county with a population of one million or more: |
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| 264 | 264 | | (i) in which all or part of a municipality |
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| 265 | 265 | | with a population of one million or more is located; and |
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| 266 | 266 | | (ii) that is adjacent to a county with a |
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| 267 | 267 | | population of 2.5 million or more; |
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| 268 | 268 | | (47) a municipality that is the county seat of a county |
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| 269 | 269 | | bordering the Gulf of Mexico and the United Mexican States; |
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| 270 | 270 | | (48) a municipality that is bisected by the Guadalupe |
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| 271 | 271 | | River and is the county seat of a county with a population of |
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| 272 | 272 | | 170,000 or more; |
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| 273 | 273 | | (49) a municipality with a population of 70,000 or |
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| 274 | 274 | | more but less than 150,000 that borders Joe Pool Lake; |
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| 275 | 275 | | (50) a municipality with a population of 115,000 or |
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| 276 | 276 | | more that borders the Neches River; |
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| 277 | 277 | | (51) a municipality described by Section 351.101(k); |
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| 278 | 278 | | (52) a municipality that is the county seat of a |
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| 279 | 279 | | county: |
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| 280 | 280 | | (A) through which the Brazos River flows; and |
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| 281 | 281 | | (B) in which a national monument is located; |
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| 282 | 282 | | (53) a municipality with a population of 45,000 or |
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| 283 | 283 | | more that: |
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| 284 | 284 | | (A) is not the county seat of a county; |
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| 285 | 285 | | (B) is located in a single county; and |
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| 286 | 286 | | (C) contains a portion of Lake Lewisville; |
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| 287 | 287 | | (54) a municipality that is the county seat of a county |
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| 288 | 288 | | with a population of more than 900,000 that is adjacent to two |
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| 289 | 289 | | counties, each of which has a population of more than 1.8 million; |
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| 290 | 290 | | (55) a municipality that hosts an annual wine festival |
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| 291 | 291 | | and is located in three counties, each of which has a population of |
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| 292 | 292 | | more than 900,000; |
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| 293 | 293 | | (56) a municipality that has a population of at least |
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| 294 | 294 | | 150,000 but less than 1,300,000 and is partially located in a county |
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| 295 | 295 | | that contains a portion of Cedar Creek Reservoir; |
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| 296 | 296 | | (57) a municipality that is located in a county that |
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| 297 | 297 | | contains a portion of Cedar Creek Reservoir and in which a private |
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| 298 | 298 | | college is located; |
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| 299 | 299 | | (58) a municipality that is the county seat of a |
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| 300 | 300 | | county: |
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| 301 | 301 | | (A) with a population of one million or more; |
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| 302 | 302 | | (B) in which all or part of a municipality with a |
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| 303 | 303 | | population of one million or more is located; and |
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| 304 | 304 | | (C) that is located adjacent to a county with a |
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| 305 | 305 | | population of 2.5 million or more; |
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| 306 | 306 | | (59) a municipality that is the county seat of a county |
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| 307 | 307 | | that contains a portion of Cedar Creek Reservoir and borders a |
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| 308 | 308 | | county with a population of more than 240,000; |
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| 309 | 309 | | (60) a municipality with a population of more than |
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| 310 | 310 | | 80,000 but less than 150,000 that is located in a county with a |
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| 311 | 311 | | population of more than 369,000 but less than 864,000 that contains |
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| 312 | 312 | | part of an active duty United States Army installation; |
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| 313 | 313 | | (61) a municipality with a population of 750,000 or |
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| 314 | 314 | | more that is located in a county with a population of 1.5 million or |
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| 315 | 315 | | less; |
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| 316 | 316 | | (62) a municipality with a population of less than |
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| 317 | 317 | | 7,000 that contains a country music hall of fame; |
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| 318 | 318 | | (63) a municipality with a population of 35,000 or |
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| 319 | 319 | | more that contains a railroad museum and is located in a county |
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| 320 | 320 | | that: |
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| 321 | 321 | | (A) has a population of 800,000 or more; and |
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| 322 | 322 | | (B) is adjacent to a county with a population of |
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| 323 | 323 | | four million or more; and |
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| 324 | 324 | | (64) a municipality: |
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| 325 | 325 | | (A) that is the county seat of a county: |
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| 326 | 326 | | (i) with a population of 60,000 or less; and |
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| 327 | 327 | | (ii) that borders the Rio Grande; and |
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| 328 | 328 | | (B) in which is located a United States military |
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| 329 | 329 | | fort listed in the National Register of Historic Places. |
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| 330 | 330 | | SECTION 4. Section 351.153(a), Tax Code, is amended to read |
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| 331 | 331 | | as follows: |
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| 332 | 332 | | (a) This section applies only to a municipality described by |
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| 333 | 333 | | Section 351.152(5), (6), [351.152(6) or] (29), or (58). |
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| 334 | 334 | | SECTION 5. Section 351.157, Tax Code, is amended by |
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| 335 | 335 | | amending Subsections (a) and (b) and adding Subsection (c-1) to |
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| 336 | 336 | | read as follows: |
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| 337 | 337 | | (a) In this section, "qualified establishment" means an |
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| 338 | 338 | | establishment: |
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| 339 | 339 | | (1) that is located on land: |
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| 340 | 340 | | (A) owned by a municipality; or |
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| 341 | 341 | | (B) owned by: |
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| 342 | 342 | | (i) any person if the establishment is |
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| 343 | 343 | | located in a municipality described by Section 351.152(3); |
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| 344 | 344 | | (ii) [or owned by] the federal government |
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| 345 | 345 | | if the establishment is located in a municipality described by |
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| 346 | 346 | | Section 351.152(6); or |
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| 347 | 347 | | (iii) a nonprofit corporation, including a |
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| 348 | 348 | | public facility corporation, that is acting as or on behalf of, or |
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| 349 | 349 | | that is controlled by, a municipality, if the establishment is |
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| 350 | 350 | | located in a municipality described by Section 351.152(5); |
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| 351 | 351 | | (2) the nearest exterior wall of which is located not |
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| 352 | 352 | | more than 1,000 feet from the nearest exterior wall of a qualified |
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| 353 | 353 | | hotel or qualified convention center facility; |
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| 354 | 354 | | (3) that is constructed: |
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| 355 | 355 | | (A) on or after the date the municipality |
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| 356 | 356 | | commences a qualified project under this subchapter; or |
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| 357 | 357 | | (B) at any time if the establishment is located |
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| 358 | 358 | | in a municipality described by Section 351.152(3); |
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| 359 | 359 | | (4) that is not a sports stadium; and |
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| 360 | 360 | | (5) that is the type of establishment described by |
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| 361 | 361 | | Subsection (c-1) [(c)] from which the municipality is entitled to |
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| 362 | 362 | | receive revenue under Subsection (d). |
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| 363 | 363 | | (b) This section applies only to: |
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| 364 | 364 | | (1) a municipality described by Section 351.152(3); |
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| 365 | 365 | | (1-a) a municipality described by Section 351.152(5); |
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| 366 | 366 | | (2) a municipality described by Section 351.152(6); |
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| 367 | 367 | | (3) a municipality described by Section 351.152(7); |
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| 368 | 368 | | (4) a municipality described by Section 351.152(10); |
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| 369 | 369 | | (4-a) a municipality described by Section |
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| 370 | 370 | | 351.152(14); |
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| 371 | 371 | | (5) a municipality described by Section 351.152(16); |
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| 372 | 372 | | (6) a municipality described by Section 351.152(22); |
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| 373 | 373 | | (7) a municipality described by Section 351.152(25); |
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| 374 | 374 | | (8) a municipality described by Section 351.152(34); |
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| 375 | 375 | | (9) a municipality described by Section 351.152(35); |
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| 376 | 376 | | (10) a municipality described by Section 351.152(36); |
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| 377 | 377 | | (11) a municipality described by Section 351.152(38); |
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| 378 | 378 | | [and] |
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| 379 | 379 | | (11-a) a municipality described by Section |
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| 380 | 380 | | 351.152(41); |
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| 381 | 381 | | (12) a municipality described by Section 351.152(43); |
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| 382 | 382 | | (13) a municipality described by Section 351.152(46); |
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| 383 | 383 | | (14) a municipality described by Section 351.152(47); |
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| 384 | 384 | | (15) a municipality described by Section 351.152(49); |
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| 385 | 385 | | (16) a municipality described by Section 351.152(53); |
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| 386 | 386 | | (17) a municipality described by Section 351.152(54); |
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| 387 | 387 | | (18) a municipality described by Section 351.152(56); |
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| 388 | 388 | | and |
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| 389 | 389 | | (19) a municipality described by Section 351.152(58). |
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| 390 | 390 | | (c-1) A municipality to which this section applies is |
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| 391 | 391 | | entitled to receive revenue under Subsection (d) derived from the |
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| 392 | 392 | | following types of establishments that meet the requirements of |
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| 393 | 393 | | Subsections (a)(1), (2), (3), and (4): |
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| 394 | 394 | | (1) restaurants; |
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| 395 | 395 | | (2) bars; |
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| 396 | 396 | | (3) retail establishments; and |
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| 397 | 397 | | (4) swimming pools and swimming facilities owned or |
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| 398 | 398 | | operated by the related qualified hotel. |
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| 399 | 399 | | SECTION 6. Subchapter C, Chapter 351, Tax Code, is amended |
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| 400 | 400 | | by adding Section 351.161 to read as follows: |
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| 401 | 401 | | Sec. 351.161. RECAPTURE OF LOST STATE TAX REVENUE FROM |
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| 402 | 402 | | CERTAIN MUNICIPALITIES. (a) This section: |
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| 403 | 403 | | (1) applies only to a qualified project that is first |
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| 404 | 404 | | commenced on or after: |
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| 405 | 405 | | (A) January 1, 2024, unless Paragraph (B) applies |
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| 406 | 406 | | to the qualified project; or |
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| 407 | 407 | | (B) January 1, 2027, if the qualified project was |
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| 408 | 408 | | authorized before January 1, 2023, by a municipality with a |
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| 409 | 409 | | population of 175,000 or more; and |
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| 410 | 410 | | (2) notwithstanding Subdivision (1), does not apply to |
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| 411 | 411 | | a qualified project that is the subject of an economic development |
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| 412 | 412 | | agreement authorized by Chapter 380, Local Government Code, entered |
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| 413 | 413 | | into on or before January 1, 2022. |
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| 414 | 414 | | (b) On the 20th anniversary of the date a hotel designated |
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| 415 | 415 | | as a qualified hotel by a municipality as part of a qualified |
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| 416 | 416 | | project to which this section applies is open for initial |
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| 417 | 417 | | occupancy, the comptroller shall determine: |
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| 418 | 418 | | (1) the total amount of state tax revenue received |
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| 419 | 419 | | under Section 351.156 and, if applicable, under Section 351.157 by |
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| 420 | 420 | | the municipality from the qualified project during the period for |
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| 421 | 421 | | which the municipality was entitled to receive that revenue; and |
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| 422 | 422 | | (2) the total amount of state tax revenue described by |
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| 423 | 423 | | Subdivision (1) received by the state during the period beginning |
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| 424 | 424 | | on the 10th anniversary of the date the qualified hotel opened for |
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| 425 | 425 | | initial occupancy and ending on the 20th anniversary of that date |
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| 426 | 426 | | from the same sources from which the municipality received the |
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| 427 | 427 | | revenue described by Subdivision (1). |
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| 428 | 428 | | (c) If the amount determined under Subsection (b)(1) |
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| 429 | 429 | | exceeds the amount determined under Subsection (b)(2), the |
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| 430 | 430 | | comptroller shall promptly provide written notice to the |
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| 431 | 431 | | municipality stating that the municipality must remit to the |
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| 432 | 432 | | comptroller the difference between those two amounts in the manner |
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| 433 | 433 | | provided by this subsection. The municipality shall, using money |
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| 434 | 434 | | lawfully available to the municipality for the purpose, remit |
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| 435 | 435 | | monthly payments to the comptroller in an amount equal to the total |
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| 436 | 436 | | amount of municipal hotel occupancy tax revenue received by the |
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| 437 | 437 | | municipality from the qualified hotel in the preceding month until |
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| 438 | 438 | | the amount remitted to the comptroller equals the total amount due |
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| 439 | 439 | | as stated in the notice. The first payment required under this |
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| 440 | 440 | | subsection must be made not later than the 30th day after the date |
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| 441 | 441 | | the municipality receives the notice from the comptroller. |
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| 442 | 442 | | Subsequent payments are due on the 20th day of each month until the |
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| 443 | 443 | | total amount stated in the notice is paid. The comptroller shall |
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| 444 | 444 | | prescribe the procedure a municipality must use to remit a payment |
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| 445 | 445 | | required by this subsection to the comptroller. |
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| 446 | 446 | | (d) The comptroller shall deposit revenue received under |
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| 447 | 447 | | this section in the manner prescribed by Section 156.251. |
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| 448 | 448 | | SECTION 7. Section 351.157(c), Tax Code, is repealed. |
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| 449 | 449 | | SECTION 8. This Act takes effect September 1, 2023. |
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| 450 | 450 | | ______________________________ ______________________________ |
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| 451 | 451 | | President of the Senate Speaker of the House |
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| 452 | 452 | | I certify that H.B. No. 5012 was passed by the House on May 9, |
|---|
| 453 | 453 | | 2023, by the following vote: Yeas 117, Nays 20, 4 present, not |
|---|
| 454 | 454 | | voting; and that the House concurred in Senate amendments to H.B. |
|---|
| 455 | 455 | | No. 5012 on May 26, 2023, by the following vote: Yeas 119, Nays 21, |
|---|
| 456 | 456 | | 1 present, not voting. |
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| 457 | 457 | | ______________________________ |
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| 458 | 458 | | Chief Clerk of the House |
|---|
| 459 | 459 | | I certify that H.B. No. 5012 was passed by the Senate, with |
|---|
| 460 | 460 | | amendments, on May 24, 2023, by the following vote: Yeas 22, Nays |
|---|
| 461 | 461 | | 8. |
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| 462 | 462 | | ______________________________ |
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| 463 | 463 | | Secretary of the Senate |
|---|
| 464 | 464 | | APPROVED: __________________ |
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| 465 | 465 | | Date |
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| 466 | 466 | | __________________ |
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| 467 | 467 | | Governor |
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