Texas 2023 - 88th Regular

Texas Senate Bill SB627 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 627
2	2
3	3
4	4	AN ACT
5	5	relating to the entitlement of certain municipalities to certain
6	6	tax revenue related to a hotel and convention center project.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 351.153(a), Tax Code, is amended to read
9	9	as follows:
10	10	(a) This section applies only to a municipality described by
11	11	Section 351.152(5), (6), [351.152(6)] or (29).
12	12	SECTION 2. Sections 351.157(a), (b), and (c), Tax Code, are
13	13	amended to read as follows:
14	14	(a) In this section, "qualified establishment" means an
15	15	establishment:
16	16	(1) that is located on land:
17	17	(A) owned by a municipality; or
18	18	(B) owned by:
19	19	(i) any person if the establishment is
20	20	located in a municipality described by Section 351.152(3); [or]
21	21	(ii) [owned by] the federal government if the
22	22	establishment is located in a municipality described by Section
23	23	351.152(6); or
24	24	(iii) a nonprofit corporation, including a
25	25	public facility corporation, that is acting as or on behalf of, or
26	26	that is controlled by, a municipality, if the establishment is
27	27	located in a municipality described by Section 351.152(5);
28	28	(2) the nearest exterior wall of which is located not
29	29	more than 1,000 feet from the nearest exterior wall of a qualified
30	30	hotel or qualified convention center facility;
31	31	(3) that is constructed:
32	32	(A) on or after the date the municipality
33	33	commences a qualified project under this subchapter; or
34	34	(B) at any time if the establishment is located
35	35	in a municipality described by Section 351.152(3);
36	36	(4) that is not a sports stadium; and
37	37	(5) that is the type of establishment described by
38	38	Subsection (c) from which the municipality is entitled to receive
39	39	revenue under Subsection (d).
40	40	(b) This section applies only to:
41	41	(1) a municipality described by Section 351.152(3);
42	42	(1-a) a municipality described by Section 351.152(5);
43	43	(2) a municipality described by Section 351.152(6);
44	44	(3) a municipality described by Section 351.152(7);
45	45	(4) a municipality described by Section 351.152(10);
46	46	(4-a) a municipality described by Section
47	47	351.152(14);
48	48	(5) a municipality described by Section 351.152(16);
49	49	(6) a municipality described by Section 351.152(22);
50	50	(7) a municipality described by Section 351.152(25);
51	51	(8) a municipality described by Section 351.152(34);
52	52	(9) a municipality described by Section 351.152(35);
53	53	(10) a municipality described by Section 351.152(36);
54	54	(11) a municipality described by Section 351.152(38);
55	55	and
56	56	(12) a municipality described by Section 351.152(43).
57	57	(c) A municipality is entitled to receive revenue under
58	58	Subsection (d) derived from the following types of establishments
59	59	that meet the requirements of Subsections (a)(1), (2), (3), and
60	60	(4):
61	61	(1) for a municipality described by Subsection (b)(1):
62	62	(A) restaurants, bars, and retail
63	63	establishments; and
64	64	(B) swimming pools and swimming facilities owned
65	65	or operated by the related qualified hotel;
66	66	(1-a) for a municipality described by Subsection
67	67	(b)(1-a):
68	68	(A) restaurants, bars, spas, and retail
69	69	establishments; and
70	70	(B) swimming pools and swimming facilities owned
71	71	or operated by the related qualified hotel;
72	72	(2) for a municipality described by Subsection (b)(2),
73	73	swimming pools and swimming facilities, restaurants, bars, and
74	74	retail establishments;
75	75	(3) for a municipality described by Subsection (b)(3),
76	76	restaurants, bars, and retail establishments;
77	77	(4) for a municipality described by Subsection (b)(4):
78	78	(A) restaurants, bars, and retail
79	79	establishments; and
80	80	(B) swimming pools and swimming facilities owned
81	81	or operated by the related qualified hotel;
82	82	(4-a) for a municipality described by Subsection
83	83	(b)(4-a):
84	84	(A) restaurants, bars, and retail
85	85	establishments; and
86	86	(B) swimming pools and swimming facilities owned
87	87	or operated by the related qualified hotel;
88	88	(5) for a municipality described by Subsection (b)(5),
89	89	restaurants, bars, and retail establishments;
90	90	(6) for a municipality described by Subsection (b)(6),
91	91	restaurants, bars, and retail establishments;
92	92	(7) for a municipality described by Subsection (b)(7),
93	93	restaurants, bars, and retail establishments;
94	94	(8) for a municipality described by Subsection (b)(8),
95	95	restaurants, bars, and retail establishments;
96	96	(9) for a municipality described by Subsection (b)(9),
97	97	restaurants, bars, and retail establishments;
98	98	(10) for a municipality described by Subsection
99	99	(b)(10):
100	100	(A) restaurants, bars, and retail
101	101	establishments; and
102	102	(B) swimming pools and swimming facilities owned
103	103	or operated by the related qualified hotel;
104	104	(11) for a municipality described by Subsection
105	105	(b)(11):
106	106	(A) restaurants, bars, and retail
107	107	establishments; and
108	108	(B) swimming pools and swimming facilities owned
109	109	or operated by the related qualified hotel; and
110	110	(12) for a municipality described by Subsection
111	111	(b)(12):
112	112	(A) restaurants, bars, and retail
113	113	establishments; and
114	114	(B) swimming pools and swimming facilities owned
115	115	or operated by the related qualified hotel.
116	116	SECTION 3. Subchapter C, Chapter 351, Tax Code, is amended
117	117	by adding Section 351.161 to read as follows:
118	118	Sec. 351.161. RECAPTURE OF LOST STATE TAX REVENUE FROM
119	119	CERTAIN MUNICIPALITIES. (a) This section applies only to a
120	120	municipality described by Section 351.152(5).
121	121	(b) On the 20th anniversary of the date a hotel designated
122	122	as a qualified hotel by a municipality to which this section applies
123	123	is open for initial occupancy, the comptroller shall determine:
124	124	(1) the total amount of state tax revenue received
125	125	under Sections 351.156 and 351.157 by the municipality from the
126	126	qualified project of which the qualified hotel was a part during the
127	127	period for which the municipality was entitled to receive that
128	128	revenue; and
129	129	(2) the total amount of state tax revenue described by
130	130	Sections 351.156 and 351.157 received by the state during the
131	131	period beginning on the 10th anniversary of the date the qualified
132	132	hotel opened for initial occupancy and ending on the 20th
133	133	anniversary of that date from the same sources from which the
134	134	municipality received revenue under Section 351.156 or 351.157.
135	135	(c) If the amount determined under Subsection (b)(1)
136	136	exceeds the amount determined under Subsection (b)(2), the
137	137	comptroller shall promptly provide written notice to the
138	138	municipality stating that the municipality must remit to the
139	139	comptroller the difference between those two amounts in the manner
140	140	provided by this subsection. The municipality shall, using money
141	141	lawfully available to the municipality for the purpose, remit
142	142	monthly payments to the comptroller in an amount equal to the total
143	143	amount of municipal hotel occupancy tax revenue received by the
144	144	municipality from the qualified hotel in the preceding month until
145	145	the amount remitted to the comptroller equals the total amount due
146	146	as stated in the notice. The first payment required under this
147	147	subsection must be made not later than the 30th day after the date
148	148	the municipality receives the notice from the comptroller.
149	149	Subsequent payments are due on the 20th day of each month until the
150	150	total amount stated in the notice is paid. The comptroller shall
151	151	prescribe the procedure a municipality must use to remit a payment
152	152	required by this subsection to the comptroller.
153	153	(d) The comptroller shall deposit revenue received under
154	154	this section in the manner prescribed by Section 156.251.
155	155	SECTION 4. This Act takes effect immediately if it receives
156	156	a vote of two-thirds of all the members elected to each house, as
157	157	provided by Section 39, Article III, Texas Constitution. If this
158	158	Act does not receive the vote necessary for immediate effect, this
159	159	Act takes effect September 1, 2023.
160	160	______________________________ ______________________________
161	161	President of the Senate Speaker of the House
162	162	I hereby certify that S.B. No. 627 passed the Senate on
163	163	April 20, 2023, by the following vote: Yeas 22, Nays 7; and that
164	164	the Senate concurred in House amendment on May 25, 2023, by the
165	165	following vote: Yeas 24, Nays 7.
166	166	______________________________
167	167	Secretary of the Senate
168	168	I hereby certify that S.B. No. 627 passed the House, with
169	169	amendment, on May 23, 2023, by the following vote: Yeas 108,
170	170	Nays 34, two present not voting.
171	171	______________________________
172	172	Chief Clerk of the House
173	173	Approved:
174	174	______________________________
175	175	Date
176	176	______________________________
177	177	Governor