89R9098 RDS-F
By: Leach H.B. No. 3066
A BILL TO BE ENTITLED
AN ACT
relating to the entitlement of certain municipalities to certain
tax revenue associated with hotel and convention center projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.158, Tax Code, is amended to read as
follows:
Sec. 351.158. PERIOD OF ENTITLEMENT. (a) Except as
provided by Subsection (b), a [A] municipality is entitled to
receive revenue as provided by Sections 351.156 and 351.157 until
the 10th anniversary of the date the qualified hotel to which the
entitlement relates is open for initial occupancy.
(b) A municipality described by Section 351.152(46) is
entitled to receive revenue as provided by Sections 351.156 and
351.157 until the 20th anniversary of the date the qualified hotel
to which the entitlement relates is open for initial occupancy.
SECTION 2. Section 351.162, Tax Code, is amended by
amending Subsections (b) and (c) and adding Subsection (b-1) to
read as follows:
(b) Except as provided by Subsection (b-1), on [On] the 20th
anniversary of the date a hotel designated as a qualified hotel by a
municipality as part of a qualified project to which this section
applies is open for initial occupancy, the comptroller shall
determine:
(1) the total amount of state tax revenue received
under Section 351.156 and, if applicable, under Section 351.157 by
the municipality from the qualified project during the period for
which the municipality was entitled to receive that revenue; and
(2) the total amount of state tax revenue described by
Subdivision (1) received by the state during the period beginning
on the 10th anniversary of the date the qualified hotel opened for
initial occupancy and ending on the 20th anniversary of that date
from the same sources from which the municipality received the
revenue described by Subdivision (1).
(b-1) On the 40th anniversary of the date a hotel designated
as a qualified hotel by a municipality described by Section
351.152(46) as part of a qualified project to which this section
applies is open for initial occupancy, the comptroller shall
determine:
(1) the total amount of state tax revenue received
under Section 351.156 and, if applicable, under Section 351.157 by
the municipality from the qualified project during the period for
which the municipality was entitled to receive that revenue; and
(2) the total amount of state tax revenue described by
Subdivision (1) received by the state during the period beginning
on the 20th anniversary of the date the qualified hotel opened for
initial occupancy and ending on the 40th anniversary of that date
from the same sources from which the municipality received the
revenue described by Subdivision (1).
(c) If the amount determined under Subsection (b)(1) or
(b-1)(1), as applicable, exceeds the amount determined under
Subsection (b)(2) or (b-1)(2), as applicable, the comptroller shall
promptly provide written notice to the municipality stating that
the municipality must remit to the comptroller the difference
between those two amounts in the manner provided by this
subsection. The municipality shall, using money lawfully available
to the municipality for the purpose, remit monthly payments to the
comptroller in an amount equal to the total amount of municipal
hotel occupancy tax revenue received by the municipality from the
qualified hotel in the preceding month until the amount remitted to
the comptroller equals the total amount due as stated in the notice.
The first payment required under this subsection must be made not
later than the 30th day after the date the municipality receives the
notice from the comptroller. Subsequent payments are due on the
20th day of each month until the total amount stated in the notice
is paid. The comptroller shall prescribe the procedure a
municipality must use to remit a payment required by this
subsection to the comptroller.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.