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A BILL TO BE ENTITLED
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AN ACT
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relating to the entitlement of certain municipalities to certain |
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tax revenue related to a hotel and convention center project. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.153(a), Tax Code, is amended to read |
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as follows: |
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(a) This section applies only to a municipality described by |
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Section 351.152(5), (6), [351.152(6)] or (29). |
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SECTION 2. Section 351.156, Tax Code, is amended to read as |
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follows: |
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Sec. 351.156. ENTITLEMENT TO CERTAIN TAX REVENUE. (a) For |
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purposes of this section, a restaurant, bar, or retail |
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establishment is connected to a qualified hotel or a related |
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qualified convention center facility if the restaurant, bar, or |
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retail establishment: |
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(1) shares an adjoining wall or roofline with the |
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qualified hotel or the related qualified convention center |
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facility; |
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(2) is joined with the qualified hotel or the related |
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qualified convention center facility by an intervening structure |
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with walls or a ceiling that allows for passage between buildings; |
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or |
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(3) is located on a plot of land that: |
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(A) shares a property boundary line with the plot |
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of land on which the qualified hotel or the related qualified |
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convention center facility is located; and |
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(B) is developed as part of a qualified project |
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of which the qualified hotel and the related qualified convention |
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center facility are a part. |
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(b) Subject to Sections 351.155(e) and 351.158, a |
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municipality is entitled to receive the revenue derived from the |
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following taxes generated, paid, and collected by a qualified |
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hotel, and each restaurant, bar, and retail establishment located |
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in or connected to the hotel or the related qualified convention |
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center facility, that is located in the municipality: |
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(1) the sales and use tax imposed under Chapter 151; |
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(2) the hotel occupancy tax imposed under Chapter 156; |
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and |
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(3) if a political subdivision that is entitled to |
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receive the revenue from the tax agrees in writing to the |
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municipality receiving that revenue: |
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(A) the sales and use tax imposed by the |
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political subdivision under Chapter 322 or 323; |
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(B) the hotel occupancy tax imposed by the |
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political subdivision under Chapter 352; and |
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(C) the mixed beverage tax issued under Section |
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183.051. |
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SECTION 3. Sections 351.157(a), (b), and (c), Tax Code, are |
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amended to read as follows: |
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(a) In this section, "qualified establishment" means an |
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establishment: |
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(1) that is located on land: |
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(A) owned by a municipality; or |
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(B) owned by: |
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(i) any person if the establishment is |
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located in a municipality described by Section 351.152(3) or (5); |
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or |
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(ii) [owned by] the federal government if the |
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establishment is located in a municipality described by Section |
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351.152(6); |
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(2) the nearest exterior wall of which is located not |
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more than 1,000 feet from the nearest exterior wall of a qualified |
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hotel or qualified convention center facility; |
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(3) that is constructed: |
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(A) on or after the date the municipality |
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commences a qualified project under this subchapter; or |
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(B) at any time if the establishment is located |
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in a municipality described by Section 351.152(3); |
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(4) that is not a sports stadium; and |
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(5) that is the type of establishment described by |
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Subsection (c) from which the municipality is entitled to receive |
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revenue under Subsection (d). |
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(b) This section applies only to: |
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(1) a municipality described by Section 351.152(3); |
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(1-a) a municipality described by Section 351.152(5); |
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(2) a municipality described by Section 351.152(6); |
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(3) a municipality described by Section 351.152(7); |
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(4) a municipality described by Section 351.152(10); |
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(4-a) a municipality described by Section |
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351.152(14); |
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(5) a municipality described by Section 351.152(16); |
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(6) a municipality described by Section 351.152(22); |
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(7) a municipality described by Section 351.152(25); |
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(8) a municipality described by Section 351.152(34); |
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(9) a municipality described by Section 351.152(35); |
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(10) a municipality described by Section 351.152(36); |
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(11) a municipality described by Section 351.152(38); |
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and |
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(12) a municipality described by Section 351.152(43). |
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(c) A municipality is entitled to receive revenue under |
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Subsection (d) derived from the following types of establishments |
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that meet the requirements of Subsections (a)(1), (2), (3), and |
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(4): |
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(1) for a municipality described by Subsection (b)(1): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; |
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(1-a) for a municipality described by Subsection |
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(b)(1-a): |
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(A) restaurants, bars, spas, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; |
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(2) for a municipality described by Subsection (b)(2), |
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swimming pools and swimming facilities, restaurants, bars, and |
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retail establishments; |
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(3) for a municipality described by Subsection (b)(3), |
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restaurants, bars, and retail establishments; |
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(4) for a municipality described by Subsection (b)(4): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; |
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(4-a) for a municipality described by Subsection |
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(b)(4-a): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; |
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(5) for a municipality described by Subsection (b)(5), |
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restaurants, bars, and retail establishments; |
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(6) for a municipality described by Subsection (b)(6), |
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restaurants, bars, and retail establishments; |
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(7) for a municipality described by Subsection (b)(7), |
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restaurants, bars, and retail establishments; |
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(8) for a municipality described by Subsection (b)(8), |
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restaurants, bars, and retail establishments; |
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(9) for a municipality described by Subsection (b)(9), |
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restaurants, bars, and retail establishments; |
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(10) for a municipality described by Subsection |
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(b)(10): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; |
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(11) for a municipality described by Subsection |
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(b)(11): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; and |
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(12) for a municipality described by Subsection |
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(b)(12): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |