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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. 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] |
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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); 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 |
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that is controlled by, a municipality, if the establishment is |
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located in a municipality described by Section 351.152(5); |
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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 3. Subchapter C, Chapter 351, Tax Code, is amended |
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by adding Section 351.161 to read as follows: |
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Sec. 351.161. RECAPTURE OF LOST STATE TAX REVENUE FROM |
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CERTAIN MUNICIPALITIES. (a) This section applies only to a |
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qualified project that is first commenced on or after January 1, |
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2027, and was authorized before January 1, 2023, by a municipality |
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with a population of 175,000 or more. |
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(b) On the 20th anniversary of the date a hotel designated |
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as a qualified hotel by a municipality to which this section applies |
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is open for initial occupancy, the comptroller shall determine: |
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(1) the total amount of state tax revenue received |
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under Section 351.156 and, if applicable, under Section 351.157 by |
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the municipality from the qualified project of which the qualified |
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hotel was a part during the period for which the municipality was |
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entitled to receive that revenue; and |
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(2) the total amount of state tax revenue described by |
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Subdivision (1) received by the state during the period beginning |
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on the 10th anniversary of the date the qualified hotel opened for |
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initial occupancy and ending on the 20th anniversary of that date |
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from the same sources from which the municipality received the |
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revenue described by Subdivision (1). |
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(c) If the amount determined under Subsection (b)(1) |
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exceeds the amount determined under Subsection (b)(2), the |
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comptroller shall promptly provide written notice to the |
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municipality stating that the municipality must remit to the |
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comptroller the difference between those two amounts in the manner |
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provided by this subsection. The municipality shall, using money |
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lawfully available to the municipality for the purpose, remit |
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monthly payments to the comptroller in an amount equal to the total |
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amount of municipal hotel occupancy tax revenue received by the |
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municipality from the qualified hotel in the preceding month until |
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the amount remitted to the comptroller equals the total amount due |
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as stated in the notice. The first payment required under this |
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subsection must be made not later than the 30th day after the date |
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the municipality receives the notice from the comptroller. |
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Subsequent payments are due on the 20th day of each month until the |
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total amount stated in the notice is paid. The comptroller shall |
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prescribe the procedure a municipality must use to remit a payment |
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required by this subsection to the comptroller. |
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(d) The comptroller shall deposit revenue received under |
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this section in the manner prescribed by Section 156.251. |
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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. |
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