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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain municipalities to use certain |
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tax revenue for hotel and convention center projects and other |
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qualified projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.1015(a)(2), Tax Code, is amended to |
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read as follows: |
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(2) "Hotel-associated revenue" means the sum of: |
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(A) state tax revenue collected in a project |
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financing zone from all hotels located in the zone that would be |
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available to the owners of qualified hotel projects under Section |
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151.429(h) if the hotels were qualified hotel projects, excluding |
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the amount of that revenue received by a municipality: |
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(i) under Section 351.156 or 351.157 in |
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connection with a qualified hotel located in the zone that exists on |
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the date the municipality designates the zone, except as provided |
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by Paragraph (B); or |
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(ii) under Section 351.102(c) for a hotel |
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project described by Section 351.102(b) and located in the zone |
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that exists on the date the municipality designates the zone; and |
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(B) tax revenue collected from all permittees |
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under Chapter 183 at hotels located in the zone, excluding revenue |
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disbursed by the comptroller under Section 183.051(b). |
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SECTION 2. Section 351.1015, Tax Code, is amended by |
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amending Subsections (b) and (e) and adding Subsections (j), (k), |
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and (l) to read as follows: |
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(b) This section applies only to a qualified project located |
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in: |
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(1) a municipality with a population of at least |
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650,000 but less than 750,000 according to the most recent federal |
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decennial census; |
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(2) a municipality described by Section |
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351.001(7)(B); |
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(3) a municipality described by Section 351.152(5); |
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(4) a municipality described by Section 351.152(61); |
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or |
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(5) a municipality with a population of at least two |
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million. |
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(e) A municipality may pledge for the payment of bonds or |
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other obligations described by Subsection (d) the local revenue |
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from eligible tax proceeds as defined by Section 2303.5055(e), |
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Government Code, from hotels located in a project financing zone |
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that would be available to the owners of qualified hotel projects |
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under that section if the hotels were qualified hotel projects, |
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excluding any amount received by the municipality: |
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(1) in connection with a qualified hotel, as defined |
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by Section 351.151, located in the zone that exists on the date the |
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municipality designates the zone; or |
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(2) for a hotel project described by Section |
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351.102(b) and located in the zone that exists on the date the |
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municipality designates the zone. |
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(j) A local government corporation that is authorized to |
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collect a municipal hotel occupancy tax may act as a municipality |
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under this section and is considered to be a municipality for |
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purposes of this section. |
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(k) For a municipality described by Subsection (b)(2), (3), |
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or (4), the term "qualified project" also means a venue described by |
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Section 334.001(4)(A), Local Government Code, and any related |
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infrastructure. |
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(l) Notwithstanding Subsection (a)(5), with respect to a |
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local government corporation to which this subsection applies, the |
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term "qualified project" means a venue and any related |
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infrastructure. This subsection applies only to a local government |
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corporation that: |
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(1) is authorized to collect a municipal hotel |
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occupancy tax; and |
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(2) is located in a county with a population of 3.3 |
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million or more. |
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SECTION 3. Section 351.152, Tax Code, is amended to read as |
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follows: |
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Sec. 351.152. APPLICABILITY. This subchapter applies only |
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to: |
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(1) a municipality described by Section |
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351.001(7)(B); |
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(2) a municipality described by Section |
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351.001(7)(D); |
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(3) a municipality described by Section |
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351.001(7)(E); |
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(4) a municipality described by Section |
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351.102(e)(3); |
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(5) a municipality that contains more than 70 [75] |
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percent of the population of a county with a population of 1.5 |
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million or more; |
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(6) a municipality with a population of 175,000 |
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[150,000] or more but less than 200,000 that is partially located in |
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at least one county with a population of 125,000 or more; |
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(7) a municipality with a population of 250,000 |
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[150,000] or more but less than one million that is located in one |
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county with a population of 2.5 [2.3] million or more; |
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(8) a municipality with a population of 180,000 or |
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more that: |
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(A) is located in two counties, each with a |
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population of 100,000 or more; and |
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(B) contains an American Quarter Horse Hall of |
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Fame and Museum; |
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(9) a municipality with a population of 96,000 or more |
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that is located in a county that borders Lake Palestine; |
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(10) a municipality with a population of 96,000 or |
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more that is located in a county that contains the headwaters of the |
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San Gabriel River; |
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(11) a municipality with a population of at least |
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95,000 [99,900 or more but less than 111,000] that is located in a |
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county that is bisected by United States Highway 385 and has [with] |
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a population of not more than 170,000 [135,000 or more]; |
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(12) a municipality with a population of 110,000 or |
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more but less than 135,000 at least part of which is located in a |
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county with a population of less than 135,000; |
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(13) a municipality with a population of 28,000 |
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[9,000] or more but less than 31,000 [10,000] that is located in two |
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counties, each of which has a population of 900,000 [662,000] or |
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more and a southern border with a county with a population of 2.5 |
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[2.3] million or more; |
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(14) a municipality with a population of 200,000 or |
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more but less than 300,000 that contains a component institution of |
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the Texas Tech University System; |
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(15) a municipality with a population of 95,000 or |
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more that: |
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(A) is located in more than one county; and |
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(B) borders Lake Lewisville; |
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(16) a municipality with a population of 45,000 or |
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more that: |
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(A) contains a portion of Cedar Hill State Park; |
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(B) is located in two counties, one of which has a |
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population of 2.5 [two] million or more and one of which has a |
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population of 190,000 [149,000] or more; and |
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(C) has adopted a capital improvement plan for |
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the construction or expansion of a convention center facility; |
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(17) a municipality with a population of less than |
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10,000 [6,000] that: |
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(A) is almost wholly located in a county with a |
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population of 900,000 [600,000] or more that is adjacent to a county |
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with a population of 2.5 [two] million or more; |
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(B) is partially located in a county with a |
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population of 2.1 [1.8] million or more that is adjacent to a county |
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with a population of 2.5 [two] million or more; |
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(C) has a visitor center and museum located in a |
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19th-century rock building in the municipality's downtown; and |
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(D) has a waterpark open to the public; |
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(18) a municipality with a population of 60,000 |
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[56,000] or more that: |
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(A) borders Lake Ray Hubbard; and |
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(B) is located in two counties, one of which has a |
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population of less than 110,000 [80,000]; |
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(19) a municipality with a population of 110,000 |
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[83,000] or more that: |
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(A) borders Clear Lake; and |
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(B) is primarily located in a county with a |
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population of less than 355,000 [300,000]; |
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(20) a municipality with a population of less than |
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2,000 that: |
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(A) is located adjacent to a bay connected to the |
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Gulf of Mexico; |
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(B) is located in a county with a population of |
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290,000 or more that is adjacent to a county with a population of |
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four million or more; and |
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(C) has a boardwalk on the bay; |
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(21) a municipality with a population of 75,000 or |
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more that: |
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(A) is located wholly in one county with a |
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population of 800,000 [575,000] or more that is adjacent to a county |
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with a population of four million or more; and |
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(B) has adopted a capital improvement plan for |
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the construction or expansion of a convention center facility; |
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(22) a municipality with a population of less than |
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70,000 [75,000] that is located in three counties, at least one of |
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which has a population of four million or more; |
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(23) an eligible coastal municipality with a |
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population of 2,900 [3,000] or more but less than 5,000; |
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(24) a municipality with a population of 90,000 or |
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more but less than 150,000 that: |
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(A) is located in three counties; and |
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(B) contains a branch campus of a component |
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institution of the University of Houston System; |
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(25) a municipality that is: |
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(A) primarily located in a county with a |
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population of four million or more; and |
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(B) connected by a bridge to a municipality |
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described by Subdivision (20); |
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(26) a municipality with a population of 25,000 |
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[20,000] or more but less than 30,000 [25,000] that: |
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(A) contains a portion of Mustang Bayou; and |
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(B) is wholly located in a county with a |
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population of less than 500,000; |
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(27) a municipality with a population of 70,000 or |
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more but less than 90,000 that is located in two counties, one of |
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which has a population of four million or more and the other of |
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which has a population of less than 50,000; |
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(28) a municipality with a population of 10,000 or |
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more that: |
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(A) is wholly located in a county with a |
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population of four million or more; and |
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(B) has a city hall located less than three miles |
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from a space center operated by an agency of the federal government; |
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(29) a municipality that is the county seat of a |
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county: |
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(A) through which the Pedernales River flows; and |
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(B) in which the birthplace of a president of the |
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United States is located; |
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(30) a municipality that contains a portion of U.S. |
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Highway 79 and State Highway 130; |
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(31) a municipality with a population of 70,000 |
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[48,000] or more but less than 115,000 [95,000] that is located in |
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two counties, one of which has a population of 1.1 million [900,000] |
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or more but less than 1.9 [1.7] million; |
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(32) a municipality with a population of less than |
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25,000 that contains a museum of Western American art; |
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(33) a municipality with a population of 50,000 or |
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more that is the county seat of a county that contains a portion of |
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the Sam Houston National Forest; |
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(34) a municipality with a population of less than |
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25,000 that: |
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(A) contains a cultural heritage museum; and |
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(B) is located in a county that borders the |
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United Mexican States and the Gulf of Mexico; |
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(35) a municipality that is the county seat of a county |
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that: |
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(A) has a population of 115,000 or more; |
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(B) is adjacent to a county with a population of |
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2.1 [1.8] million or more; and |
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(C) hosts an annual peach festival; |
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(36) a municipality that is the county seat of a county |
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that: |
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(A) has a population of 800,000 [585,000] or |
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more; and |
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(B) is adjacent to a county with a population of |
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four million or more; |
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(37) a municipality with a population of less than |
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10,000 that: |
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(A) contains a component university of The Texas |
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A&M University System; and |
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(B) is located in a county adjacent to a county |
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that borders Oklahoma; |
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(38) a municipality with a population of less than |
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17,000 [6,100] that: |
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(A) is located in two counties, each of which has |
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a population of 900,000 [600,000] or more but less than two million; |
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and |
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(B) hosts an annual Cajun Festival; |
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(39) a municipality with a population of 13,000 or |
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more that: |
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(A) is located on an international border; and |
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(B) is located in a county: |
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(i) with a population of less than 400,000; |
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and |
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(ii) in which at least one World Birding |
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Center site is located; |
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(40) a municipality with a population of 3,200 [4,000] |
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or more that: |
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(A) is located on an international border; and |
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(B) is located not more than five miles from a |
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state historic site that serves as a visitor center for a state park |
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that contains 300,000 or more acres of land; |
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(41) a municipality with a population of 36,000 or |
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more that is adjacent to at least two municipalities described by |
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Subdivision (15); |
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(42) a municipality with a population of 28,000 or |
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more that is located in a county with a population of 240,000 or |
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more that contains a portion of the Blanco River and in which is |
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located a historic railroad depot and heritage center; |
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(43) a municipality located in a county that has a |
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population of not more than 300,000 and in which a component |
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university of the University of Houston System is located; |
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(44) a municipality with a population of less than |
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500,000 that is: |
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(A) located in two counties; and |
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(B) adjacent to a municipality described by |
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Subdivision (31); [and] |
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(45) a municipality that: |
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(A) has a population of more than 67,000; and |
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(B) is located in two counties with 90 percent of |
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the municipality's territory located in a county with a population |
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of at least 800,000 [580,000], and the remaining territory located |
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in a county with a population of at least four million; |
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(46) a municipality that: |
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(A) has a population of 100,000 or more; and |
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(B) is wholly located in, but is not the county |
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seat of, a county with a population of one million or more: |
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(i) in which all or part of a municipality |
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with a population of one million or more is located; and |
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(ii) that is adjacent to a county with a |
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population of 2.5 million or more; |
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(47) a municipality that is the county seat of a county |
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bordering the Gulf of Mexico and the United Mexican States; |
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(48) a municipality that is bisected by the Guadalupe |
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River and is the county seat of a county with a population of |
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170,000 or more; |
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(49) a municipality with a population of 70,000 or |
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more but less than 150,000 that borders Joe Pool Lake; |
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(50) a municipality with a population of 115,000 or |
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more that borders the Neches River; |
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(51) a municipality described by Section 351.101(k); |
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(52) a municipality that is the county seat of a |
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county: |
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(A) through which the Brazos River flows; and |
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(B) in which a national monument is located; |
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(53) a municipality with a population of 45,000 or |
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more that: |
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(A) is not the county seat of a county; |
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(B) is located in a single county; and |
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(C) contains a portion of Lake Lewisville; |
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(54) a municipality that is the county seat of a county |
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with a population of more than 900,000 that is adjacent to two |
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counties, each of which has a population of more than 1.8 million; |
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(55) a municipality that hosts an annual wine festival |
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and is located in three counties, each of which has a population of |
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more than 900,000; |
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(56) a municipality that has a population of at least |
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150,000 but less than 1,300,000 and is partially located in a county |
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that contains a portion of Cedar Creek Reservoir; |
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(57) a municipality that is located in a county that |
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contains a portion of Cedar Creek Reservoir and in which a private |
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college is located; |
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(58) a municipality that is the county seat of a |
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county: |
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(A) with a population of one million or more; |
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(B) in which all or part of a municipality with a |
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population of one million or more is located; and |
|
(C) that is located adjacent to a county with a |
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population of 2.5 million or more; |
|
(59) a municipality that is the county seat of a county |
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that contains a portion of Cedar Creek Reservoir and borders a |
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county with a population of more than 240,000; |
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(60) a municipality with a population of more than |
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80,000 but less than 150,000 that is located in a county with a |
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population of more than 369,000 but less than 864,000 that contains |
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part of an active duty United States Army installation; |
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(61) a municipality with a population of 750,000 or |
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more that is located in a county with a population of 1.5 million or |
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less; |
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(62) a municipality with a population of less than |
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7,000 that contains a country music hall of fame; |
|
(63) a municipality with a population of 35,000 or |
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more that contains a railroad museum and is located in a county |
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that: |
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(A) has a population of 800,000 or more; and |
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(B) is adjacent to a county with a population of |
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four million or more; and |
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(64) a municipality: |
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(A) that is the county seat of a county: |
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(i) with a population of 60,000 or less; and |
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(ii) that borders the Rio Grande; and |
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(B) in which is located a United States military |
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fort listed in the National Register of Historic Places. |
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SECTION 4. Section 351.153(a), Tax Code, is amended to read |
|
as follows: |
|
(a) This section applies only to a municipality described by |
|
Section 351.152(5), (6), [351.152(6) or] (29), or (58). |
|
SECTION 5. Section 351.157, Tax Code, is amended by |
|
amending Subsections (a) and (b) and adding Subsection (c-1) to |
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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); |
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(ii) [or owned by] the federal government |
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if the establishment is located in a municipality described by |
|
Section 351.152(6); or |
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(iii) a nonprofit corporation, including a |
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public facility corporation, that is acting as or on behalf of, or |
|
that is controlled by, a municipality, if the establishment is |
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located in a municipality described by Section 351.152(5); |
|
(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; |
|
(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 |
|
(B) at any time if the establishment is located |
|
in a municipality described by Section 351.152(3); |
|
(4) that is not a sports stadium; and |
|
(5) that is the type of establishment described by |
|
Subsection (c-1) [(c)] from which the municipality is entitled to |
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receive revenue under Subsection (d). |
|
(b) This section applies only to: |
|
(1) a municipality described by Section 351.152(3); |
|
(1-a) a municipality described by Section 351.152(5); |
|
(2) a municipality described by Section 351.152(6); |
|
(3) a municipality described by Section 351.152(7); |
|
(4) a municipality described by Section 351.152(10); |
|
(4-a) a municipality described by Section |
|
351.152(14); |
|
(5) a municipality described by Section 351.152(16); |
|
(6) a municipality described by Section 351.152(22); |
|
(7) a municipality described by Section 351.152(25); |
|
(8) a municipality described by Section 351.152(34); |
|
(9) a municipality described by Section 351.152(35); |
|
(10) a municipality described by Section 351.152(36); |
|
(11) a municipality described by Section 351.152(38); |
|
[and] |
|
(11-a) a municipality described by Section |
|
351.152(41); |
|
(12) a municipality described by Section 351.152(43); |
|
(13) a municipality described by Section 351.152(46); |
|
(14) a municipality described by Section 351.152(47); |
|
(15) a municipality described by Section 351.152(49); |
|
(16) a municipality described by Section 351.152(53); |
|
(17) a municipality described by Section 351.152(54); |
|
(18) a municipality described by Section 351.152(56); |
|
and |
|
(19) a municipality described by Section 351.152(58). |
|
(c-1) A municipality to which this section applies is |
|
entitled to receive revenue under Subsection (d) derived from the |
|
following types of establishments that meet the requirements of |
|
Subsections (a)(1), (2), (3), and (4): |
|
(1) restaurants; |
|
(2) bars; |
|
(3) retail establishments; and |
|
(4) swimming pools and swimming facilities owned or |
|
operated by the related qualified hotel. |
|
SECTION 6. Subchapter C, Chapter 351, Tax Code, is amended |
|
by adding Section 351.161 to read as follows: |
|
Sec. 351.161. RECAPTURE OF LOST STATE TAX REVENUE FROM |
|
CERTAIN MUNICIPALITIES. (a) This section: |
|
(1) applies only to a qualified project that is first |
|
commenced on or after: |
|
(A) January 1, 2024, unless Paragraph (B) applies |
|
to the qualified project; or |
|
(B) January 1, 2027, if the qualified project was |
|
authorized before January 1, 2023, by a municipality with a |
|
population of 175,000 or more; and |
|
(2) notwithstanding Subdivision (1), does not apply to |
|
a qualified project that is the subject of an economic development |
|
agreement authorized by Chapter 380, Local Government Code, entered |
|
into on or before January 1, 2022. |
|
(b) 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). |
|
(c) If the amount determined under Subsection (b)(1) |
|
exceeds the amount determined under Subsection (b)(2), 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. |
|
(d) The comptroller shall deposit revenue received under |
|
this section in the manner prescribed by Section 156.251. |
|
SECTION 7. Section 351.157(c), Tax Code, is repealed. |
|
SECTION 8. This Act takes effect September 1, 2023. |
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* * * * * |