| 1 | 1 | | 89R9098 RDS-F |
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| 2 | 2 | | By: Paxton S.B. No. 1425 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the entitlement of certain municipalities to certain |
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| 10 | 10 | | tax revenue associated with hotel and convention center projects. |
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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 351.158, Tax Code, is amended to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | Sec. 351.158. PERIOD OF ENTITLEMENT. (a) Except as |
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| 15 | 15 | | provided by Subsection (b), a [A] municipality is entitled to |
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| 16 | 16 | | receive revenue as provided by Sections 351.156 and 351.157 until |
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| 17 | 17 | | the 10th anniversary of the date the qualified hotel to which the |
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| 18 | 18 | | entitlement relates is open for initial occupancy. |
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| 19 | 19 | | (b) A municipality described by Section 351.152(46) is |
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| 20 | 20 | | entitled to receive revenue as provided by Sections 351.156 and |
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| 21 | 21 | | 351.157 until the 20th anniversary of the date the qualified hotel |
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| 22 | 22 | | to which the entitlement relates is open for initial occupancy. |
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| 23 | 23 | | SECTION 2. Section 351.162, Tax Code, is amended by |
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| 24 | 24 | | amending Subsections (b) and (c) and adding Subsection (b-1) to |
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| 25 | 25 | | read as follows: |
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| 26 | 26 | | (b) Except as provided by Subsection (b-1), on [On] the 20th |
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| 27 | 27 | | anniversary of the date a hotel designated as a qualified hotel by a |
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| 28 | 28 | | municipality as part of a qualified project to which this section |
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| 29 | 29 | | applies is open for initial occupancy, the comptroller shall |
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| 30 | 30 | | determine: |
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| 31 | 31 | | (1) the total amount of state tax revenue received |
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| 32 | 32 | | under Section 351.156 and, if applicable, under Section 351.157 by |
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| 33 | 33 | | the municipality from the qualified project during the period for |
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| 34 | 34 | | which the municipality was entitled to receive that revenue; and |
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| 35 | 35 | | (2) the total amount of state tax revenue described by |
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| 36 | 36 | | Subdivision (1) received by the state during the period beginning |
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| 37 | 37 | | on the 10th anniversary of the date the qualified hotel opened for |
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| 38 | 38 | | initial occupancy and ending on the 20th anniversary of that date |
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| 39 | 39 | | from the same sources from which the municipality received the |
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| 40 | 40 | | revenue described by Subdivision (1). |
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| 41 | 41 | | (b-1) On the 40th anniversary of the date a hotel designated |
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| 42 | 42 | | as a qualified hotel by a municipality described by Section |
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| 43 | 43 | | 351.152(46) as part of a qualified project to which this section |
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| 44 | 44 | | applies is open for initial occupancy, the comptroller shall |
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| 45 | 45 | | determine: |
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| 46 | 46 | | (1) the total amount of state tax revenue received |
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| 47 | 47 | | under Section 351.156 and, if applicable, under Section 351.157 by |
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| 48 | 48 | | the municipality from the qualified project during the period for |
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| 49 | 49 | | which the municipality was entitled to receive that revenue; and |
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| 50 | 50 | | (2) the total amount of state tax revenue described by |
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| 51 | 51 | | Subdivision (1) received by the state during the period beginning |
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| 52 | 52 | | on the 20th anniversary of the date the qualified hotel opened for |
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| 53 | 53 | | initial occupancy and ending on the 40th anniversary of that date |
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| 54 | 54 | | from the same sources from which the municipality received the |
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| 55 | 55 | | revenue described by Subdivision (1). |
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| 56 | 56 | | (c) If the amount determined under Subsection (b)(1) or |
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| 57 | 57 | | (b-1)(1), as applicable, exceeds the amount determined under |
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| 58 | 58 | | Subsection (b)(2) or (b-1)(2), as applicable, the comptroller shall |
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| 59 | 59 | | promptly provide written notice to the municipality stating that |
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| 60 | 60 | | the municipality must remit to the comptroller the difference |
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| 61 | 61 | | between those two amounts in the manner provided by this |
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| 62 | 62 | | subsection. The municipality shall, using money lawfully available |
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| 63 | 63 | | to the municipality for the purpose, remit monthly payments to the |
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| 64 | 64 | | comptroller in an amount equal to the total amount of municipal |
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| 65 | 65 | | hotel occupancy tax revenue received by the municipality from the |
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| 66 | 66 | | qualified hotel in the preceding month until the amount remitted to |
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| 67 | 67 | | the comptroller equals the total amount due as stated in the notice. |
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| 68 | 68 | | The first payment required under this subsection must be made not |
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| 69 | 69 | | later than the 30th day after the date the municipality receives the |
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| 70 | 70 | | notice from the comptroller. Subsequent payments are due on the |
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| 71 | 71 | | 20th day of each month until the total amount stated in the notice |
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| 72 | 72 | | is paid. The comptroller shall prescribe the procedure a |
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| 73 | 73 | | municipality must use to remit a payment required by this |
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| 74 | 74 | | subsection to the comptroller. |
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| 75 | 75 | | SECTION 3. This Act takes effect immediately if it receives |
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| 76 | 76 | | a vote of two-thirds of all the members elected to each house, as |
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| 77 | 77 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 78 | 78 | | Act does not receive the vote necessary for immediate effect, this |
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| 79 | 79 | | Act takes effect September 1, 2025. |
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