1-1 AN ACT
1-2 relating to the financing of sports and community venues and
1-3 related infrastructure; authorizing the imposition of certain local
1-4 taxes and the issuance of local bonds; providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle C, Title 10, Local Government Code, is
1-7 amended by adding Chapters 334 and 335 to read as follows:
1-8 CHAPTER 334. SPORTS AND COMMUNITY VENUES
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 334.001. DEFINITIONS. In this chapter:
1-11 (1) "Approved venue project" means a sports and
1-12 community venue project that has been approved under this chapter
1-13 by the voters of a municipality or county.
1-14 (2) "Governing body" means the governing body of a
1-15 municipality or the commissioners court of a county.
1-16 (3) "Related infrastructure" includes any store,
1-17 restaurant, on-site hotel, concession, automobile parking facility,
1-18 area transportation facility, road, street, water or sewer
1-19 facility, park, or other on-site or off-site improvement that
1-20 relates to and enhances the use, value, or appeal of a venue,
1-21 including areas adjacent to the venue, and any other expenditure
1-22 reasonably necessary to construct, improve, renovate, or expand a
1-23 venue, including an expenditure for environmental remediation.
1-24 (4) "Venue" means:
2-1 (A) an arena, coliseum, stadium, or other type
2-2 of area or facility:
2-3 (i) that is used or is planned for use for
2-4 one or more professional or amateur sports events, community
2-5 events, or other sports events, including rodeos, livestock shows,
2-6 agricultural expositions, promotional events, and other civic or
2-7 charitable events; and
2-8 (ii) for which a fee for admission to the
2-9 events is charged or is planned to be charged;
2-10 (B) a convention center facility or related
2-11 improvement such as a convention center, civic center, civic center
2-12 building, civic center hotel, auditorium, theater, opera house,
2-13 music hall, exhibition hall, rehearsal hall, park, zoological park,
2-14 museum, aquarium, or plaza located in the vicinity of a convention
2-15 center or facility owned by a municipality or a county;
2-16 (C) a tourist development area along an inland
2-17 waterway; and
2-18 (D) any other economic development project
2-19 authorized by other law.
2-20 (5) "Sports and community venue project" or "venue
2-21 project" means a venue and related infrastructure that is planned,
2-22 acquired, established, developed, constructed, or renovated under
2-23 this chapter.
2-24 Sec. 334.002. APPLICATION TO CERTAIN MUNICIPALITIES AND
2-25 COUNTIES. This chapter applies to a municipality with a population
2-26 of more than 1.2 million and to a county with a population of more
2-27 than 2.2 million only if the municipality and county create a
3-1 sports and community venue district under Chapter 335 and only to
3-2 the extent the use of this chapter by the district is necessary or
3-3 convenient for the creation or operation of the district to the
3-4 fullest extent authorized by Chapter 335.
3-5 Sec. 334.003. APPLICATION TO VENUE CONSTRUCTED UNDER OTHER
3-6 LAW. A county or municipality may use this chapter for a venue
3-7 project relating to a venue and related infrastructure planned,
3-8 acquired, established, developed, constructed, or renovated under
3-9 other law, including Section 4B, Development Corporation Act of
3-10 1979 (Article 5190.6, Vernon's Texas Civil Statutes), or Subchapter
3-11 E, Chapter 451, Transportation Code.
3-12 Sec. 334.004. OTHER USES OF VENUE PERMITTED. This chapter
3-13 does not prohibit the use of a venue for an event that is not
3-14 related to a purpose described by Section 334.001, such as a
3-15 community-related event.
3-16 Sec. 334.005. SPECIFIC PERFORMANCE. (a) The legislature
3-17 expressly finds and determines that:
3-18 (1) the presence of a professional sports team in an
3-19 approved venue project built or renovated under this chapter
3-20 provides a unique value to the municipality or county that built or
3-21 renovated the project that cannot be adequately valued in money;
3-22 and
3-23 (2) the municipality or county that built or renovated
3-24 the approved venue project would suffer irreparable injury if a
3-25 professional sports team breaches its obligation to play its home
3-26 games in the approved venue project as required by an agreement
3-27 between the sports team and the municipality or county.
4-1 (b) An agreement described by Subsection (a)(2) shall be
4-2 enforceable by specific performance in the courts of this state. A
4-3 waiver of this remedy is contrary to public policy and is
4-4 unenforceable and void.
4-5 Sec. 334.006. PROHIBITION AGAINST TAX EXPANSION. In a
4-6 county with a population of over 2.8 million, no tax on real
4-7 property or on personal property may be used for the operation,
4-8 maintenance, renovation, or repair of any venue authorized by an
4-9 election on November 5, 1996, and constructed after that date.
4-10 (Sections 334.007-334.020 reserved for expansion
4-11 SUBCHAPTER B. VENUE PROJECTS
4-12 Sec. 334.021. RESOLUTION AUTHORIZING PROJECT. (a) A county
4-13 or municipality by resolution may provide for the planning,
4-14 acquisition, establishment, development, construction, or
4-15 renovation of a venue project if:
4-16 (1) the comptroller determines under Section 334.022
4-17 or 334.023 that the implementation of the resolution will not have
4-18 a significant negative fiscal impact on state revenue;
4-19 (2) to the extent required by Section 334.0235 or
4-20 334.0236, a rapid transit authority determines that the
4-21 implementation of the resolution will not have a significant
4-22 negative impact on the authority's ability to provide services and
4-23 will not impair any existing contracts; and
4-24 (3) the resolution is approved by a majority of the
4-25 qualified voters of the municipality or county voting at an
4-26 election called and held for that purpose under Section 334.024.
4-27 (b) The resolution must designate each venue project and
5-1 each method of financing authorized by this chapter that the
5-2 municipality or county wants to use to finance a project. A
5-3 resolution may designate more than one method of financing.
5-4 Sec. 334.022. STATE FISCAL IMPACT ANALYSIS. (a) Before
5-5 calling an election on the resolution under Section 334.024, the
5-6 municipality or county shall send a copy of the resolution to the
5-7 comptroller.
5-8 (b) Before the 15th day after the date the comptroller
5-9 receives the copy of the resolution, the comptroller shall:
5-10 (1) perform an analysis to determine if approval and
5-11 implementation of the resolution will have a significant negative
5-12 fiscal impact on state revenue; and
5-13 (2) provide to the municipality or county written
5-14 notice of the results of the analysis.
5-15 (c) If the comptroller determines that implementation will
5-16 have a significant negative fiscal impact on state revenue, the
5-17 written analysis required under Subsection (b)(2) must include
5-18 information on how to change the resolution so that implementation
5-19 will not have a significant negative fiscal impact on state
5-20 revenue.
5-21 (d) If the comptroller does not complete the analysis and
5-22 provide the notice before the 30th day after the date the
5-23 comptroller receives the copy of the resolution, the comptroller is
5-24 considered to have determined that approval and implementation of
5-25 the resolution will not have a significant negative fiscal impact
5-26 on state revenue.
5-27 Sec. 334.023. APPEAL OF COMPTROLLER DETERMINATION. (a) If
6-1 the comptroller determines under Section 334.022 that
6-2 implementation of the resolution will have a significant negative
6-3 fiscal impact on state revenue, the municipality or county may
6-4 contest the finding by filing an appeal with the comptroller not
6-5 later than the 10th day after the date the municipality or county
6-6 receives the written notice under Section 334.022.
6-7 (b) Before the 11th day after the date the comptroller
6-8 receives the appeal under Subsection (a), the comptroller shall
6-9 perform a new analysis to determine if implementation of the
6-10 resolution will have a significant negative fiscal impact on state
6-11 revenue and provide to the municipality or county written notice
6-12 of the results of the analysis.
6-13 (c) If the comptroller again determines that implementation
6-14 will have a significant negative fiscal impact on state revenue,
6-15 the written analysis required under Subsection (b) must include
6-16 additional information on how to change the resolution so that
6-17 implementation will not have a significant negative fiscal impact
6-18 on state revenue.
6-19 (d) If the comptroller does not comply with Subsection (b)
6-20 before the 30th day after the date the comptroller receives the
6-21 appeal or request for information, the comptroller is considered to
6-22 have determined that approval and implementation of the resolution
6-23 will not have a significant negative fiscal impact on state
6-24 revenue.
6-25 Sec. 334.0235. TRANSPORTATION AUTHORITY IMPACT ANALYSIS.
6-26 (a) If the resolution contains a proposed sales and use tax under
6-27 Subchapter D, and imposition of the tax would result in the
7-1 reduction of the tax rate of a rapid transit authority created
7-2 under Chapter 451, Transportation Code, or a regional
7-3 transportation authority created under Chapter 452, Transportation
7-4 Code, the municipality or county shall send a copy of the
7-5 resolution to the authority before calling an election on the
7-6 resolution under Section 334.024.
7-7 (b) Before the 30th day after the date the rapid transit
7-8 authority receives the copy of the resolution, the authority shall:
7-9 (1) perform an analysis to determine if implementation
7-10 of the proposed sales and use tax and the resulting reduction in
7-11 the authority's tax rate will:
7-12 (A) have a significant negative impact on the
7-13 authority's ability to provide services; or
7-14 (B) impair any existing contracts; and
7-15 (2) provide to the municipality or county written
7-16 notice of the results of the analysis.
7-17 (c) If the rapid transit authority determines that
7-18 implementation of the resolution will have a significant negative
7-19 impact on the authority's ability to provide services or will
7-20 impair any existing contracts, the written analysis required under
7-21 Subsection (b)(2) must include information on how to change the
7-22 resolution so that implementation will not have a significant
7-23 negative impact on the authority's ability to provide service or
7-24 will not impair any existing contracts.
7-25 (d) If the rapid transit authority does not complete the
7-26 analysis and provide the notice before the 30th day after the date
7-27 the authority receives the copy of the resolution, the authority is
8-1 considered to have determined that implementation of the resolution
8-2 will not have a significant negative impact on the authority's
8-3 ability to provide services and will not impair any existing
8-4 contracts.
8-5 Sec. 334.0236. APPEAL OF AUTHORITY DETERMINATION. (a) If a
8-6 rapid transit authority determines under Section 334.0235 that
8-7 implementation of the resolution will have a significant negative
8-8 impact on the authority's ability to provide services or will
8-9 impair an existing contract, the municipality or county may contest
8-10 the finding by filing an appeal with the authority not later than
8-11 the 10th day after the date the municipality or county receives the
8-12 written notice under Section 334.0235.
8-13 (b) Before the 11th day after the date the rapid transit
8-14 authority receives the appeal under Subsection (a), the authority
8-15 shall perform a new analysis to determine if implementation of the
8-16 resolution will have a significant negative impact on the
8-17 authority's ability to provide services or will impair an existing
8-18 contract and provide to the municipality or county written notice
8-19 of the results of the analysis.
8-20 (c) If the authority again determines that implementation
8-21 will have a significant negative impact on the authority's ability
8-22 to provide services or will impair an existing contract, the
8-23 written analysis required under Subsection (b) must include
8-24 additional information on how to change the resolution so that
8-25 implementation will not have a significant negative impact on the
8-26 authority's ability to provide services and will not impair an
8-27 existing contract.
9-1 (d) If the rapid transit authority does not comply with
9-2 Subsection (b) before the 11th day after the date the authority
9-3 receives the appeal or request for information, the authority is
9-4 considered to have determined that approval and implementation of
9-5 the resolution will not have a significant negative impact on the
9-6 authority's ability to provide services and will not impair any
9-7 existing contracts.
9-8 Sec. 334.024. ELECTION. (a) If the comptroller determines
9-9 under Section 334.022 or 334.023 that the implementation of the
9-10 resolution will not have a significant negative fiscal impact on
9-11 state revenue, and, if applicable, the rapid transit authority
9-12 determines under Section 334.0235 or 334.0236 that the
9-13 implementation will not have a significant negative impact on the
9-14 authority's ability to provide service and will not impair any
9-15 existing contracts, the governing body of the municipality or
9-16 county may order an election on the question of approving and
9-17 implementing the resolution.
9-18 (b) The order calling the election must:
9-19 (1) allow the voters to vote separately on each venue
9-20 project;
9-21 (2) designate the venue project;
9-22 (3) designate each method of financing authorized by
9-23 this chapter that the municipality or county wants to use to
9-24 finance the project and the maximum rate of each method; and
9-25 (4) allow the voters to vote, in the same proposition
9-26 or in separate propositions, on each method of financing authorized
9-27 by this chapter that the municipality or county wants to use to
10-1 finance the project and the maximum rate of each method.
10-2 (c) The ballot at the election held under this section must
10-3 be printed to permit voting for or against the proposition:
10-4 "Authorizing ________ (insert name of municipality or county) to
10-5 _______ (insert description of venue project) and to impose a
10-6 ________ tax at the rate of ________ (insert the type of tax and
10-7 the maximum rate of the tax) for the purpose of financing the venue
10-8 project."
10-9 (d) If more than one method of financing is to be voted on
10-10 in one proposition, the ballot must be printed to permit voting for
10-11 or against the proposition: "Authorizing ________ (insert name of
10-12 municipality or county) to ________ (insert description of venue
10-13 project) and to impose a ________ tax at the rate of _______
10-14 (insert each type of tax and the maximum rate of each tax) for the
10-15 purpose of financing the venue project."
10-16 (e) The Election Code governs an election held under this
10-17 chapter.
10-18 (Sections 334.025-334.040 reserved for expansion
10-19 SUBCHAPTER C. POWERS AND DUTIES
10-20 Sec. 334.041. GENERAL POWERS. (a) A municipality or county
10-21 may perform any act necessary to the full exercise of the
10-22 municipality's or county's powers under this chapter.
10-23 (b) A municipality or county may acquire, sell, lease,
10-24 convey, or otherwise dispose of property or an interest in
10-25 property, including an approved venue project, under terms and
10-26 conditions determined by the municipality or county. In a
10-27 transaction with another public entity that is made as provided by
11-1 this subsection, the public purpose found by the legislature under
11-2 Section 334.044 is adequate consideration for the municipality or
11-3 county and the other public entity.
11-4 (c) A municipality or county may contract with a public or
11-5 private person, including a sports team, club, organization, or
11-6 other entity to:
11-7 (1) plan, acquire, establish, develop, construct, or
11-8 renovate an approved venue project; or
11-9 (2) perform any other act the municipality or county
11-10 is authorized to perform under this chapter, other than conducting
11-11 an election under this chapter.
11-12 (d) A municipality or county may contract with or enter into
11-13 an interlocal agreement with a school district, junior or community
11-14 college district, or an institution of higher education as defined
11-15 by Section 61.003, Education Code, for a purpose described by
11-16 Subsection (c). The contract or interlocal agreement may provide
11-17 for joint ownership and operation or joint use.
11-18 (e) The competitive bidding laws, including Chapter 271, do
11-19 not apply to the planning, acquisition, establishment, development,
11-20 construction, or renovation of an approved venue project under this
11-21 chapter.
11-22 (f) A municipality or county may not use revenue derived
11-23 from ad valorem taxes to construct, operate, maintain, or renovate
11-24 a venue that is part of an approved venue project.
11-25 Sec. 334.0415. USE OF FINANCING FOR CERTAIN PROJECTS.
11-26 Notwithstanding any other provision of this chapter, a municipality
11-27 or county, or an entity created by or acting on behalf of or in
12-1 conjunction with a municipality or county, that contracts with a
12-2 professional sports team or the team's owner or representative on
12-3 or before November 1, 1998, for the team to relocate and play at an
12-4 arena, coliseum, or stadium in the municipality or county may not
12-5 use any method of financing authorized by this chapter to finance
12-6 the acquisition or construction of the arena, coliseum, or stadium
12-7 if the team is playing under an existing contract and is located in
12-8 another arena, coliseum, or stadium owned by a different
12-9 municipality or county in this state unless the governing body of
12-10 that different municipality or county consents to the contract.
12-11 Sec. 334.042. VENUE PROJECT FUND. (a) A municipality or
12-12 county in which an approved venue project is located shall
12-13 establish by resolution a fund known as the venue project fund.
12-14 The municipality or county shall establish separate accounts within
12-15 the fund for the various revenue sources.
12-16 (b) The municipality or county shall deposit into the venue
12-17 project fund:
12-18 (1) the proceeds of any tax imposed by the
12-19 municipality or county under this chapter;
12-20 (2) all revenue from the sale of bonds or other
12-21 obligations by the municipality or county under this chapter; and
12-22 (3) any other money required by law to be deposited in
12-23 the fund.
12-24 (c) The municipality or county may deposit into the venue
12-25 project fund:
12-26 (1) money received by the municipality or county from
12-27 innovative funding concepts such as the sale or lease of luxury
13-1 boxes or the sale of licenses for personal seats; and
13-2 (2) any other revenue received by the municipality or
13-3 county from the approved venue project, including stadium rental
13-4 payments and revenue from concessions and parking.
13-5 (d) The municipality or county may use money in the venue
13-6 project fund to:
13-7 (1) reimburse or pay the costs of planning, acquiring,
13-8 establishing, developing, constructing, or renovating one or more
13-9 approved venue projects in the municipality or county;
13-10 (2) pay the principal of, interest on, and other costs
13-11 relating to bonds or other obligations issued by the municipality
13-12 or county or to refund bonds, notes, or other obligations; or
13-13 (3) pay the costs of operating or maintaining one or
13-14 more approved venue projects.
13-15 (e) Money deposited into the venue project fund, including
13-16 money deposited under Subsection (c), is the property of the
13-17 municipality or county depositing the money.
13-18 Sec. 334.0425. BOOKS, RECORDS, AND PAPERS. The books,
13-19 records, and papers of the municipality or county relating to an
13-20 approved venue project and the revenue used to finance the project
13-21 are public information and subject to disclosure under Chapter 552,
13-22 Government Code.
13-23 Sec. 334.043. BONDS AND OTHER OBLIGATIONS. (a) A
13-24 municipality or county in which an approved venue project is
13-25 located may issue bonds, including revenue bonds and refunding
13-26 bonds, or other obligations to pay the costs of the approved venue
13-27 project.
14-1 (b) The bonds or other obligations and the proceedings
14-2 authorizing the bonds or other obligations shall be submitted to
14-3 the attorney general for review and approval as required by Article
14-4 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
14-5 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
14-6 (c) The bonds or other obligations must be payable from and
14-7 secured by the revenues in the venue project fund.
14-8 (d) The bonds or other obligations may mature serially or
14-9 otherwise not more than 30 years from their date of issuance.
14-10 (e) The bonds or other obligations are not a debt of and do
14-11 not create a claim for payment against the revenue or property of
14-12 the municipality or county other than the revenue sources pledged
14-13 and an approved venue project for which the bonds are issued.
14-14 Sec. 334.044. PUBLIC PURPOSE OF VENUE PROJECT. (a) The
14-15 legislature finds for all constitutional and statutory purposes
14-16 that an approved venue project is owned, used, and held for public
14-17 purposes by the municipality or county.
14-18 (b) Section 25.07(a), Tax Code, does not apply to a
14-19 leasehold or other possessory interest granted by the municipality
14-20 or county while the municipality or county owns the venue project.
14-21 (c) The venue project is exempt from taxation under Section
14-22 11.11, Tax Code, while the municipality or county owns the venue
14-23 project.
14-24 (d) If approval and implementation of a resolution under
14-25 this chapter results in the removal from a school district's
14-26 property tax rolls of real property otherwise subject to ad valorem
14-27 taxation, the operator of the approved venue project located on
15-1 that property shall pay to the school district on January 1 of each
15-2 year in which the project is in operation and in which the real
15-3 property is exempt from ad valorem taxation an amount equal to the
15-4 ad valorem taxes that would otherwise have been levied for the
15-5 preceding tax year on that real property by the school district,
15-6 without including the value of any improvements. This subsection
15-7 does not apply if the operator of the project is a political
15-8 subdivision of this state.
15-9 (Sections 334.045-334.080 reserved for expansion
15-10 SUBCHAPTER D. SALES AND USE TAX
15-11 Sec. 334.081. SALES AND USE TAX. (a) A municipality by
15-12 ordinance or a county by order may impose a sales and use tax under
15-13 this subchapter.
15-14 (b) A municipality by ordinance or a county by order may
15-15 repeal or decrease the rate of a tax imposed under this subchapter.
15-16 (c) A municipality or county may impose a tax under this
15-17 subchapter only if:
15-18 (1) an approved venue project is or is planned to be
15-19 located in the municipality or county; and
15-20 (2) the tax is approved at an election held under
15-21 Section 334.024.
15-22 Sec. 334.082. TAX CODE APPLICABLE. (a) Chapter 321, Tax
15-23 Code, governs the imposition, computation, administration,
15-24 collection, and remittance of a municipal tax authorized under this
15-25 subchapter except as inconsistent with this chapter.
15-26 (b) Chapter 323, Tax Code, governs the imposition,
15-27 computation, administration, collection, and remittance of a county
16-1 tax authorized under this subchapter except as inconsistent with
16-2 this chapter.
16-3 (c) Sections 321.101(b), 321.506, and 323.101(b), Tax Code,
16-4 do not apply to the tax authorized by this subchapter.
16-5 (d) The tax imposed by this subchapter is in addition to a
16-6 tax imposed under other law, including Chapters 321 and 323, Tax
16-7 Code.
16-8 Sec. 334.083. TAX RATE. (a) The rate of a tax adopted
16-9 under this subchapter must be one-eighth, one-fourth,
16-10 three-eighths, or one-half of one percent.
16-11 (b) The ballot proposition at the election held to adopt the
16-12 tax must specify the rate of the tax to be adopted.
16-13 Sec. 334.084. RATE INCREASE. (a) A municipality or county
16-14 that has adopted a sales and use tax under this subchapter at a
16-15 rate of less than one-half of one percent may by ordinance or order
16-16 increase the rate of the tax if the increase is approved by a
16-17 majority of the registered voters of that municipality or county
16-18 voting at an election called and held for that purpose.
16-19 (b) The tax may be increased under Subsection (a) in one or
16-20 more increments of one-eighth of one percent to a maximum of
16-21 one-half of one percent.
16-22 (c) The ballot for an election to increase the tax shall be
16-23 printed to permit voting for or against the proposition: "The
16-24 adoption of a sales and use tax for the purpose of financing
16-25 _______ (insert description of venue project) at the rate of
16-26 _______ of one percent (insert one-fourth, three-eighths, or
16-27 one-half, as appropriate)."
17-1 Sec. 334.085. IMPOSITION IN MUNICIPALITY OR COUNTY WITH
17-2 OTHER TAXING AUTHORITY. (a) In this section, "taxing authority"
17-3 means:
17-4 (1) a rapid transit authority created under Chapter
17-5 451, Transportation Code;
17-6 (2) a regional transportation authority created under
17-7 Chapter 452, Transportation Code;
17-8 (3) a crime control district created under the Crime
17-9 Control and Prevention District Act (Article 2370c-4, Vernon's
17-10 Texas Civil Statutes); or
17-11 (4) an industrial development corporation created
17-12 under Section 4A or 4B, Development Corporation Act of 1979
17-13 (Article 5190.6, Vernon's Texas Civil Statutes).
17-14 (b) Except as provided by Section 334.0855, if a
17-15 municipality or county is included within the boundaries of another
17-16 taxing authority and the adoption or increase of the tax under this
17-17 subchapter would result in a combined tax rate of more than two
17-18 percent in any location in the municipality or county, the election
17-19 to approve or increase the tax under this chapter is to be treated
17-20 for all purposes as an election to reduce the tax rate of the other
17-21 taxing authority (except a rapid transit authority created under
17-22 Chapter 451, Transportation Code) to the highest rate that will not
17-23 result in a combined tax rate of more than two percent in any
17-24 location in the municipality or county. If the municipality or
17-25 county is located within the boundaries of only one taxing
17-26 authority, and the adoption or increase of the tax under this
17-27 subchapter will result in a decrease of the tax rate of the taxing
18-1 authority, the ballot at an election to impose or increase the tax
18-2 must clearly state that the adoption or increase of the tax will
18-3 result in a reduction of the tax rate of the taxing authority. If
18-4 the municipality or county is included within the boundaries of
18-5 more than one taxing authority, the election to impose or increase
18-6 the tax under this subchapter must allow the voters to choose which
18-7 taxing authority's tax will be reduced.
18-8 (b-1) If the voters choose reduction of the tax collected by
18-9 a rapid transit authority created under Chapter 451, Transportation
18-10 Code, and imposition of the tax authorized under this section would
18-11 result in a reduction of the rapid transit authority's tax rate to
18-12 the highest rate that will not result in a combined tax rate of
18-13 more than two percent in any location in the municipality or
18-14 county, an election must be held pursuant to Subchapter M, Chapter
18-15 451, Transportation Code, as applicable for the type of authority
18-16 involved, on the question of withdrawing the affected
18-17 municipalities from the authority prior to imposition of the tax
18-18 authorized in this section. If withdrawal is not authorized, the
18-19 tax may not be imposed unless authorized pursuant to subsequent
18-20 election(s). Upon withdrawal of each affected municipality from
18-21 the authority (if withdrawal is authorized), the obligation to
18-22 provide service (including service to persons with disabilities)
18-23 shall be discontinued for that municipality except as required
18-24 under applicable federal law. In all other respects, the
18-25 provisions of Subchapter M, Chapter 451, Transportation Code,
18-26 governing withdrawal procedures and obligations of municipalities
18-27 upon withdrawal shall apply.
19-1 (c) The rate of the tax imposed by the other taxing
19-2 authority is increased without further action of the board of the
19-3 authority or the voters of the authority, municipality, or county
19-4 on the date on which the tax imposed under this subchapter is
19-5 decreased or expires, but only to the extent that any tax imposed
19-6 by the authority was reduced under this section when the tax
19-7 imposed by the municipality or county was adopted or increased.
19-8 (d) This section does not permit a taxing authority to
19-9 impose taxes at differential tax rates within the territory of the
19-10 authority.
19-11 Sec. 334.0855. IMPOSITION IN CERTAIN MUNICIPALITIES AND
19-12 COUNTIES. (a) This section applies only to a:
19-13 (1) municipality that is included in a regional
19-14 transportation authority created under Chapter 452, Transportation
19-15 Code; and
19-16 (2) county that is included within the boundaries of a
19-17 regional transportation authority created under Chapter 452,
19-18 Transportation Code.
19-19 (b) If the adoption or increase of the tax under this
19-20 subchapter would otherwise result under Section 334.085 in the
19-21 reduction of the tax rate of the transportation authority, the
19-22 election to approve or increase the tax under this subchapter is to
19-23 be treated for all purposes as an election to withdraw from the
19-24 authority in accordance with and subject to Subchapter Q, Chapter
19-25 452, Transportation Code.
19-26 (c) The ballot language at an election to which this section
19-27 applies must clearly state that the adoption or increase of the tax
20-1 under this subchapter will result in the withdrawal of the
20-2 municipality or county from the transportation authority.
20-3 (d) A municipality or county subject to this section that
20-4 votes to adopt or increase the tax under this subchapter may not
20-5 impose that tax before the date on which the municipality's or
20-6 county's financial obligations to the authority are satisfied in
20-7 accordance with Subchapter Q, Chapter 452, Transportation Code.
20-8 Sec. 334.086. IMPOSITION OF TAX. (a) If the municipality
20-9 or county adopts the tax, a tax is imposed on the receipts from the
20-10 sale at retail of taxable items in the municipality or county at
20-11 the rate approved at the election.
20-12 (b) There is also imposed an excise tax on the use, storage,
20-13 or other consumption in the municipality or county of tangible
20-14 personal property purchased, leased, or rented from a retailer
20-15 during the period that the tax is effective in the municipality or
20-16 county. The rate of the excise tax is the same as the rate of the
20-17 sales tax portion of the tax and is applied to the sale price of
20-18 the tangible personal property.
20-19 Sec. 334.087. EFFECTIVE DATE OF TAX. The adoption of the
20-20 tax or the change of the tax rate takes effect on the first day of
20-21 the first calendar quarter occurring after the expiration of the
20-22 first complete quarter occurring after the date on which the
20-23 comptroller receives a notice of the results of the election
20-24 adopting or increasing the tax or of the ordinance or order
20-25 decreasing the tax.
20-26 Sec. 334.088. DEPOSIT OF TAX REVENUES. Revenue from the tax
20-27 imposed under this subchapter shall be deposited in the venue
21-1 project fund of the municipality or county imposing the tax.
21-2 Sec. 334.089. ABOLITION OF TAX. (a) A sales and use tax
21-3 imposed under this subchapter may not be collected after the last
21-4 day of the first calendar quarter occurring after notification to
21-5 the comptroller by the municipality or county that the municipality
21-6 or county has abolished the tax or that all bonds or other
21-7 obligations of the municipality or county that are payable in whole
21-8 or in part from money in the venue project fund, including any
21-9 refunding bonds or other obligations, have been paid in full or the
21-10 full amount of money, exclusive of guaranteed interest, necessary
21-11 to pay in full the bonds and other obligations has been set aside
21-12 in a trust account dedicated to the payment of the bonds and other
21-13 obligations.
21-14 (b) The municipality or county shall notify the comptroller
21-15 of the expiration of the tax not later than the 60th day before the
21-16 expiration date.
21-17 (Sections 334.090-334.100 reserved for expansion
21-18 SUBCHAPTER E. SHORT-TERM MOTOR VEHICLE RENTAL TAX
21-19 Sec. 334.101. DEFINITIONS. (a) In this subchapter:
21-20 (1) "Motor vehicle" means a self-propelled vehicle
21-21 designed principally to transport persons or property on a public
21-22 roadway and includes a passenger car, van, station wagon, sports
21-23 utility vehicle, and truck. The term does not include a:
21-24 (A) trailer, semitrailer, house trailer, truck
21-25 having a manufacturer's rating of more than one-half ton, or
21-26 road-building machine;
21-27 (B) device moved only by human power;
22-1 (C) device used exclusively on stationary rails
22-2 or tracks;
22-3 (D) farm machine; or
22-4 (E) mobile office.
22-5 (2) "Rental" means an agreement by the owner of a
22-6 motor vehicle to authorize for not longer than 30 days the
22-7 exclusive use of that vehicle to another for consideration.
22-8 (3) "Place of business of the owner" means an
22-9 established outlet, office, or location operated by the owner of a
22-10 motor vehicle or the owner's agent or employee for the purpose of
22-11 renting motor vehicles and includes any location at which three or
22-12 more rentals are made during a year.
22-13 (b) Except as provided by Subsection (a), words used in this
22-14 subchapter and defined by Chapter 152, Tax Code, have the meanings
22-15 assigned by Chapter 152, Tax Code.
22-16 Sec. 334.102. TAX AUTHORIZED. (a) A municipality by
22-17 ordinance or a county by order may impose a tax on the rental in
22-18 the municipality or county of a motor vehicle.
22-19 (b) A municipality by ordinance or a county by order may
22-20 repeal or decrease the rate of a tax imposed under Subsection (a).
22-21 (c) A municipality or county may impose a tax under this
22-22 subchapter only if:
22-23 (1) an approved venue project is or is planned to be
22-24 located in the municipality or county; and
22-25 (2) the tax is approved at an election held under
22-26 Section 334.024.
22-27 Sec. 334.103. SHORT-TERM RENTAL TAX. (a) The tax
23-1 authorized by this subchapter is imposed at a rate in increments
23-2 of one-eighth of one percent, not to exceed five percent, on the
23-3 gross rental receipts from the rental in the municipality or county
23-4 of a motor vehicle.
23-5 (b) The ballot proposition at the election held to adopt the
23-6 tax must specify the maximum rate of the tax to be adopted.
23-7 Sec. 334.104. RATE INCREASE. (a) A municipality or county
23-8 that has adopted a tax under this subchapter at a rate of less than
23-9 five percent may by ordinance or order increase the rate of the tax
23-10 to a maximum of five percent if the increase is approved by a
23-11 majority of the registered voters of that municipality or county
23-12 voting at an election called and held for that purpose.
23-13 (b) The ballot for an election to increase the rate of the
23-14 tax shall be printed to permit voting for or against the
23-15 proposition: "The increase of the motor vehicle rental tax for the
23-16 purpose of financing _____ (insert description of venue project) to
23-17 a maximum rate of _______ percent (insert new maximum rate not to
23-18 exceed five percent)."
23-19 Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motor
23-20 vehicle subject to the tax imposed under this subchapter shall
23-21 collect the tax for the benefit of the municipality or county.
23-22 (b) The owner shall add the short-term motor vehicle rental
23-23 tax imposed by the municipality or county under this subchapter, if
23-24 applicable, and the gross rental receipts tax imposed by Chapter
23-25 152, Tax Code, to the rental charge, and the sum of the taxes is a
23-26 part of the rental charge, is a debt owed to the motor vehicle
23-27 owner by the person renting the vehicle, and is recoverable at law
24-1 in the same manner as the rental charge.
24-2 Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motor
24-3 vehicle occurs in the municipality or county in which transfer of
24-4 possession of the motor vehicle occurs.
24-5 Sec. 334.107. EXEMPTIONS APPLICABLE. The exemptions
24-6 provided by Subchapter E, Chapter 152, Tax Code, apply to the tax
24-7 authorized by this subchapter.
24-8 Sec. 334.108. NOTICE OF TAX. Each bill or other receipt for
24-9 a rental subject to the tax imposed under this subchapter must
24-10 contain a statement in a conspicuous location stating: "_______
24-11 (insert name of taxing municipality or county) requires that an
24-12 additional tax of ____ percent (insert rate of tax) be imposed on
24-13 each motor vehicle rental for the purpose of financing ______
24-14 (describe approved venue project)."
24-15 Sec. 334.109. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
24-16 gross receipts of an owner of a motor vehicle from the rental of
24-17 the motor vehicle are presumed to be subject to the tax imposed by
24-18 this subchapter, except for gross receipts for which the owner has
24-19 accepted in good faith a properly completed exemption certificate.
24-20 Sec. 334.110. RECORDS. (a) The owner of a motor vehicle
24-21 used for rental purposes shall keep for four years records and
24-22 supporting documents containing the following information on the
24-23 amount of:
24-24 (1) gross rental receipts received from the rental of
24-25 the motor vehicle; and
24-26 (2) the tax imposed under this subchapter and paid to
24-27 the municipality or county on each motor vehicle used for rental
25-1 purposes by the owner.
25-2 (b) Mileage records are not required.
25-3 Sec. 334.111. FAILURE TO KEEP RECORDS. (a) An owner of a
25-4 motor vehicle commits an offense if the owner fails to make and
25-5 retain complete records for the four-year period required by
25-6 Section 334.110.
25-7 (b) An offense under this section is a misdemeanor
25-8 punishable by a fine of not less than $25 or more than $500.
25-9 Sec. 334.112. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
25-10 tax imposed under this subchapter or a change in the tax rate takes
25-11 effect on the date prescribed by the ordinance or order imposing
25-12 the tax or changing the rate.
25-13 (b) A municipality or county may impose a tax under this
25-14 subchapter only if the municipality or county issues bonds or other
25-15 obligations under Section 334.043 before the first anniversary of
25-16 the date the tax is imposed. The municipality or county may not
25-17 impose the tax after those bonds or other obligations are paid in
25-18 full.
25-19 Sec. 334.113. TAX COLLECTION; PENALTY. (a) The owner of a
25-20 motor vehicle required to collect the tax imposed under this
25-21 subchapter shall report and send the taxes collected to the
25-22 municipality or county as provided by the ordinance or order
25-23 imposing the tax.
25-24 (b) A municipality by ordinance or a county by order may
25-25 prescribe penalties, including interest charges, for failure to
25-26 keep records required by the municipality or county, to report when
25-27 required, or to pay the tax when due.
26-1 (c) The attorney acting for the municipality or county may
26-2 bring suit against a person who fails to collect a tax under this
26-3 subchapter and to pay it over to the municipality or county as
26-4 required.
26-5 Sec. 334.114. COLLECTION PROCEDURES ON PURCHASE OF MOTOR
26-6 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle
26-7 rental business that makes rentals subject to the tax imposed by
26-8 this subchapter sells the business, the successor to the seller or
26-9 the seller's assignee shall withhold an amount of the purchase
26-10 price sufficient to pay the amount of tax due until the seller
26-11 provides a receipt by a person designated by the municipality or
26-12 county to provide the receipt showing that the amount has been paid
26-13 or a certificate showing that no tax is due.
26-14 (b) The purchaser of a motor vehicle rental business who
26-15 fails to withhold an amount of the purchase price as required by
26-16 this section is liable for the amount required to be withheld to
26-17 the extent of the value of the purchase price.
26-18 (c) The purchaser of a motor vehicle rental business may
26-19 request that the person designated by the municipality or county to
26-20 provide a receipt under Subsection (a) issue a certificate stating
26-21 that no tax is due or issue a statement of the amount required to
26-22 be paid before a certificate may be issued. The person designated
26-23 by the municipality or county shall issue the certificate or
26-24 statement not later than the 60th day after the date the person
26-25 receives the request.
26-26 (d) If the person designated by the municipality or county
26-27 to provide a receipt under Subsection (a) fails to issue the
27-1 certificate or statement within the period provided by Subsection
27-2 (c), the purchaser is released from the obligation to withhold the
27-3 purchase price or pay the amount due.
27-4 Sec. 334.115. DEPOSIT OF TAX REVENUE. Revenue from the tax
27-5 imposed under this subchapter shall be deposited in the venue
27-6 project fund of the municipality or county imposing the tax.
27-7 (Sections 334.116-334.150 reserved for expansion
27-8 SUBCHAPTER F. ADMISSIONS TAX
27-9 Sec. 334.151. TAX AUTHORIZED. (a) A municipality by
27-10 ordinance or a county by order may impose a tax on each ticket sold
27-11 as admission to an event held at an approved venue project in the
27-12 municipality or county for which the municipality or county has
27-13 issued bonds to plan, acquire, establish, develop, construct, or
27-14 renovate the approved venue project.
27-15 (b) The municipality or county may not impose the tax under
27-16 this subchapter for admission to an event at a venue that is not an
27-17 approved venue project or for which the municipality or county has
27-18 not issued bonds to plan, acquire, establish, develop, construct,
27-19 or renovate the approved venue project.
27-20 (c) A municipality or county may impose a tax under this
27-21 subchapter only if:
27-22 (1) an approved venue project is or will be located in
27-23 the municipality or county; and
27-24 (2) the tax is approved at an election held under
27-25 Section 334.024.
27-26 Sec. 334.152. TAX RATE. (a) The tax authorized by this
27-27 subchapter is imposed at the tax rate on each ticket sold as
28-1 admission to an event held at an approved venue.
28-2 (b) The amount of the tax may be imposed at any uniform
28-3 percentage not to exceed 10 percent of the price of the ticket sold
28-4 as admission to an event held at an approved venue.
28-5 (c) The ballot proposition at the election held to adopt the
28-6 tax must specify the maximum rate of the tax to be adopted.
28-7 (d) The municipality by ordinance or the county by order may
28-8 repeal or decrease the rate of the tax imposed under this
28-9 subchapter.
28-10 Sec. 334.153. RATE INCREASE. (a) A municipality or county
28-11 that has adopted a tax under this subchapter at the rate of less
28-12 than the maximum percentage allowed by this subchapter may by
28-13 ordinance or order increase the rate of the tax to the maximum
28-14 percentage allowed by this subchapter if the increase is approved
28-15 by a majority of the registered voters of that municipality or
28-16 county voting at an election called and held for that purpose.
28-17 (b) The ballot for an election to increase the rate of the
28-18 tax shall be printed to permit voting for or against the
28-19 proposition: "The increase of the admissions tax for the purpose
28-20 of financing _______ (insert description of venue project) to a
28-21 maximum rate of ________ percent of the price of each ticket sold
28-22 as admission to an event held at an approved venue (insert new
28-23 maximum rate not to exceed 10 percent of the price of each ticket
28-24 sold as admission to an event held at an approved venue)."
28-25 Sec. 334.154. COLLECTION. (a) The municipality by
28-26 ordinance or the county by order may require the owner or lessee of
28-27 an approved venue project in the municipality or county to collect
29-1 the tax for the benefit of the municipality or county.
29-2 (b) An owner or lessee required to collect the tax under
29-3 this section shall add the tax to the admissions price, and the tax
29-4 is a part of the admissions price, a debt owed to the owner or
29-5 lessee of the approved venue project by the person admitted, and
29-6 recoverable at law in the same manner as the admissions charge.
29-7 (c) The tax imposed by this subchapter is not an occupation
29-8 tax imposed on the owner or lessee of the approved venue project.
29-9 Sec. 334.155. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
29-10 tax imposed under this subchapter or a change in a tax rate takes
29-11 effect on the date prescribed by the ordinance or order imposing
29-12 the tax or changing the rate.
29-13 (b) A municipality or county may impose a tax under this
29-14 subchapter only if the municipality or county issues bonds or other
29-15 obligations under Section 334.043. The municipality or county may
29-16 impose the tax only while those bonds or other obligations are
29-17 outstanding and unpaid.
29-18 Sec. 334.156. COLLECTION OF TAX. (a) A person required to
29-19 collect a tax imposed under this subchapter shall report and send
29-20 the taxes to the municipality or county as provided by the
29-21 municipality or county imposing the tax.
29-22 (b) A municipality by ordinance or a county by order may
29-23 prescribe penalties, including interest charges, for failure to
29-24 keep records required by the municipality or county, to report when
29-25 required, or to pay the tax when due. The attorney acting for the
29-26 municipality or county may bring suit against a person who fails to
29-27 collect a tax under this subchapter and to pay it over to the
30-1 municipality or county as required.
30-2 (c) A municipality by ordinance or a county by order may
30-3 permit a person who is required to collect a tax under this
30-4 subchapter to retain a percentage of the amount collected and
30-5 required to be reported as reimbursement to the person for the
30-6 costs of collecting the tax. The municipality or county may
30-7 provide that the person may retain the amount only if the person
30-8 pays the tax and files reports as required by the municipality or
30-9 county.
30-10 Sec. 334.157. DEPOSIT OF TAX REVENUE. Revenue from the tax
30-11 imposed under this subchapter shall be deposited in the venue
30-12 project fund of the municipality or county imposing the tax.
30-13 (Sections 334.158-334.200 reserved for expansion
30-14 SUBCHAPTER G. PARKING TAX
30-15 Sec. 334.201. EVENT PARKING TAX. (a) A municipality by
30-16 ordinance or a county by order may impose a tax on each motor
30-17 vehicle parking in a parking facility of an approved venue project.
30-18 (b) The municipality or county may impose the tax during a
30-19 period beginning not more than three hours before and ending not
30-20 more than three hours after the time an event in an approved venue
30-21 project is scheduled to begin. The municipality or county may not
30-22 impose the tax under this subchapter during any other time.
30-23 (c) A municipality or county may impose a tax under this
30-24 subchapter only if the tax is approved at an election held under
30-25 Section 334.024.
30-26 Sec. 334.202. TAX RATE. (a) The municipality by ordinance
30-27 or the county by order may provide that the tax is imposed at a
31-1 flat amount on each parked motor vehicle or is imposed as a
31-2 percentage of the amount charged for event parking by the owner or
31-3 lessee of the parking facility.
31-4 (b) Regardless of the method of imposition, the amount of
31-5 the tax may not exceed $3 for each motor vehicle.
31-6 (c) The ballot proposition at the election held to adopt the
31-7 tax must specify the maximum rate of the tax to be adopted.
31-8 (d) The municipality by ordinance or the county by order may
31-9 repeal or decrease the rate of the tax imposed under this section.
31-10 Sec. 334.203. RATE INCREASE. (a) A municipality or county
31-11 that has adopted a tax under this subchapter at a rate of less than
31-12 $3 a vehicle may by ordinance or order increase the rate of the tax
31-13 to a maximum of $3 a vehicle if the increase is approved by a
31-14 majority of the registered voters of that municipality or county
31-15 voting at an election called and held for that purpose.
31-16 (b) The ballot for an election to increase the rate of the
31-17 tax shall be printed to permit voting for or against the
31-18 proposition: "The increase of the parking tax for the purpose of
31-19 financing _______ (insert description of venue project) to a
31-20 maximum rate of _______ (insert new maximum rate not to exceed
31-21 $3)."
31-22 Sec. 334.204. COLLECTION. (a) The municipality by
31-23 ordinance or the county by order may require the owner or lessee of
31-24 a parking facility to collect the tax for the benefit of the
31-25 municipality or county.
31-26 (b) An owner or lessee required to collect the tax under
31-27 this section shall add the tax to the parking charge, and the tax
32-1 is a part of the parking charge, a debt owed to the parking
32-2 facility owner or lessee by the person parking, and recoverable at
32-3 law in the same manner as the parking charge.
32-4 (c) The tax imposed by this subchapter is not an occupation
32-5 tax imposed on the owner or lessee of the parking facility.
32-6 Sec. 334.205. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
32-7 tax imposed under this subchapter or a change in the tax rate takes
32-8 effect on the date prescribed by the ordinance or order imposing
32-9 the tax or changing the rate.
32-10 (b) A municipality or county may impose a tax under this
32-11 subchapter only if the municipality or county issues bonds or other
32-12 obligations under Section 334.043. The municipality or county may
32-13 impose the tax only while those bonds or other obligations are
32-14 outstanding and unpaid.
32-15 Sec. 334.206. COLLECTION OF TAX. (a) A person required to
32-16 collect a tax imposed under this subchapter shall report and send
32-17 the taxes to the municipality or county as provided by the
32-18 municipality or county imposing the tax.
32-19 (b) A municipality by ordinance or a county by order may
32-20 prescribe penalties, including interest charges, for failure to
32-21 keep records required by the municipality or county, to report when
32-22 required, or to pay the tax when due. The attorney acting for the
32-23 municipality or county may bring suit against a person who fails to
32-24 collect a tax under this subchapter and to pay it over to the
32-25 municipality or county as required.
32-26 (c) A municipality by ordinance or a county by order may
32-27 permit a person who is required to collect a tax under this
33-1 subchapter to retain a percentage of the amount collected and
33-2 required to be reported as reimbursement to the person for the
33-3 costs of collecting the tax. The municipality or county may
33-4 provide that the person may retain the amount only if the person
33-5 pays the tax and files reports as required by the municipality or
33-6 county.
33-7 Sec. 334.207. DEPOSIT OF TAX REVENUE. Revenue from the tax
33-8 imposed under this subchapter shall be deposited in the venue
33-9 project fund of the municipality or county imposing the tax.
33-10 (Sections 334.208-334.250 reserved for expansion
33-11 SUBCHAPTER H. HOTEL OCCUPANCY TAXES
33-12 Sec. 334.251. DEFINITION. In this subchapter, "hotel" has
33-13 the meaning assigned by Section 156.001, Tax Code.
33-14 Sec. 334.252. IMPOSITION OF TAX. (a) A municipality by
33-15 ordinance or a county by order may impose a tax on a person who,
33-16 under a lease, concession, permit, right of access, license,
33-17 contract, or agreement, pays for the use or possession or for the
33-18 right to the use or possession of a room that is in a hotel, costs
33-19 $2 or more each day, and is ordinarily used for sleeping.
33-20 (b) A municipality or county may impose a tax under this
33-21 subchapter only if:
33-22 (1) an approved venue project is or is planned to be
33-23 located in the municipality or county; and
33-24 (2) the tax is approved at an election held under
33-25 Section 334.024.
33-26 Sec. 334.253. TAX CODE APPLICABLE. (a) Sections
33-27 351.002(c), 351.004, 351.0041, 351.005, and 351.006, Tax Code,
34-1 govern the imposition, computation, administration, collection, and
34-2 remittance of a municipal tax authorized under this subchapter
34-3 except as inconsistent with this subchapter.
34-4 (b) Sections 352.002(c), 352.004, 352.0041, 352.005, and
34-5 352.007, Tax Code, govern the imposition, computation,
34-6 administration, collection, and remittance of a county tax
34-7 authorized under this subchapter except as inconsistent with this
34-8 subchapter.
34-9 (c) The tax imposed by this subchapter is in addition to a
34-10 tax imposed under Chapter 351 or 352, Tax Code.
34-11 Sec. 334.254. TAX RATE. (a) The tax authorized by this
34-12 subchapter may be imposed by a municipality or county at any rate
34-13 not to exceed two percent of the price paid for a room in a hotel.
34-14 (b) The ballot proposition at the election held to adopt the
34-15 tax must specify the maximum rate of the tax to be adopted.
34-16 Sec. 334.255. RATE INCREASE. (a) A municipality or county
34-17 that has adopted a tax under this subchapter at a rate of less
34-18 than two percent may by ordinance or order increase the rate of the
34-19 tax to the maximum applicable rate if the increase is approved by a
34-20 majority of the registered voters of that municipality or county
34-21 voting at an election called and held for that purpose.
34-22 (b) The ballot for an election to increase the rate of the
34-23 tax shall be printed to permit voting for or against the
34-24 proposition: "The increase of the hotel occupancy tax for the
34-25 purpose of financing __________ (insert description of venue
34-26 project) to a maximum rate of ___________ percent (insert new
34-27 maximum applicable rate)."
35-1 Sec. 334.256. NOTICE OF TAX. Each bill or other receipt for
35-2 a hotel charge subject to the tax imposed under this subchapter
35-3 must contain a statement in a conspicuous location stating:
35-4 "_____________ (insert name of taxing municipality or county)
35-5 requires that an additional tax of _____ percent (insert rate of
35-6 tax) be imposed on each hotel charge for the purpose of financing a
35-7 venue project."
35-8 Sec. 334.257. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
35-9 tax imposed under this subchapter or a change in the tax rate takes
35-10 effect on the date prescribed by the ordinance or order imposing
35-11 the tax or changing the rate.
35-12 (b) A municipality or county may impose a tax under this
35-13 subchapter only if the municipality or county issues bonds or other
35-14 obligations under Section 334.043 before the first anniversary of
35-15 the date the tax is imposed. The municipality or county may impose
35-16 the tax only while those bonds or other obligations are outstanding
35-17 and unpaid.
35-18 Sec. 334.258. DEPOSIT OF TAX REVENUE. Revenue from the tax
35-19 imposed under this subchapter shall be deposited in the venue
35-20 project fund of the municipality or county imposing the tax.
35-21 (Sections 334.259-334.300 reserved for expansion
35-22 SUBCHAPTER I. FACILITY USE TAX
35-23 Sec. 334.301. DEFINITION. In this subchapter, "major league
35-24 team" means a team that is a member of the National Football
35-25 League, National Basketball Association, or National Hockey League
35-26 or a major league baseball team or any other professional team.
35-27 Sec. 334.302. TAX AUTHORIZED. (a) A municipality by
36-1 ordinance or a county by order may impose a facility use tax on
36-2 each member of a major league team that plays a professional sports
36-3 game in an approved venue project in the municipality or county
36-4 for which the municipality or county has issued bonds to plan,
36-5 acquire, establish, develop, construct, or renovate the approved
36-6 venue project.
36-7 (b) The municipality or county may not impose the facility
36-8 use tax under this subchapter for a professional sports game at a
36-9 venue that is not an approved venue project or for which the
36-10 municipality or county has not issued bonds to plan, acquire,
36-11 establish, develop, construct, or renovate the approved venue
36-12 project.
36-13 (c) A municipality or county may impose a tax under this
36-14 subchapter only if:
36-15 (1) an approved venue project is or will be located in
36-16 the municipality or county; and
36-17 (2) the tax is approved at an election held under
36-18 Section 334.024.
36-19 Sec. 334.303. TAX RATE. (a) The tax authorized by this
36-20 subchapter is imposed at the tax rate on each member of the
36-21 professional sports team for each professional game the member
36-22 plays at the approved venue project.
36-23 (b) The amount of the tax may be imposed at any uniform
36-24 monetary amount not to exceed $5,000 a game.
36-25 (c) The ballot proposition at the election held to adopt the
36-26 tax must specify the maximum rate of the tax to be adopted.
36-27 (d) The municipality by ordinance or the county by order may
37-1 repeal or decrease the rate of the tax imposed under this
37-2 subchapter.
37-3 Sec. 334.304. RATE INCREASE. (a) A municipality or county
37-4 that has adopted a tax under this subchapter at the rate of less
37-5 than $5,000 a game may by ordinance or order increase the rate of
37-6 the tax to a maximum of $5,000 a game if the increase is approved
37-7 by a majority of the registered voters of that municipality or
37-8 county voting at an election called and held for that purpose.
37-9 (b) The ballot for an election to increase the rate of the
37-10 tax shall be printed to permit voting for or against the
37-11 proposition: "The increase of the facility use tax for the purpose
37-12 of financing _______ (insert description of venue project) to a
37-13 maximum rate of ________ a game (insert new maximum rate not to
37-14 exceed $5,000)."
37-15 Sec. 334.305. COLLECTION. (a) The municipality by
37-16 ordinance or the county by order may require the owner or lessee of
37-17 an approved venue project in the municipality or county to collect
37-18 the tax for the benefit of the municipality or county.
37-19 (b) The tax imposed by this subchapter is a debt owed to the
37-20 owner or lessee of the approved venue project by the team member
37-21 and recoverable at law.
37-22 (c) The tax imposed by this subchapter is not an occupation
37-23 tax imposed on the owner or lessee of the approved venue project
37-24 or on the professional sports team member.
37-25 Sec. 334.306. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
37-26 tax imposed under this subchapter or a change in a tax rate takes
37-27 effect on the date prescribed by the ordinance or order imposing
38-1 the tax or changing the rate.
38-2 (b) A municipality or county may impose a tax under this
38-3 subchapter only if the municipality or county issues bonds or other
38-4 obligations under Section 334.043. The municipality or county may
38-5 impose the tax only while those bonds or other obligations are
38-6 outstanding and unpaid.
38-7 Sec. 334.307. COLLECTION OF TAX. (a) A person required to
38-8 collect a tax imposed under this subchapter shall report and send
38-9 the taxes to the municipality or county as provided by the
38-10 municipality or county imposing the tax.
38-11 (b) A municipality by ordinance or a county by order may
38-12 prescribe penalties, including interest charges, for failure to
38-13 keep records required by the municipality or county, to report when
38-14 required, or to pay the tax when due. The attorney acting for the
38-15 municipality or county may bring suit against a person who fails
38-16 to collect a tax under this subchapter and to pay it over to the
38-17 municipality or county as required.
38-18 (c) A municipality by ordinance or a county by order may
38-19 permit a person who is required to collect a tax under this
38-20 subchapter to retain a percentage of the amount collected and
38-21 required to be reported as reimbursement to the person for the
38-22 costs of collecting the tax. The municipality or county may
38-23 provide that the person may retain the amount only if the person
38-24 pays the tax and files reports as required by the municipality or
38-25 county.
38-26 Sec. 334.308. DEPOSIT OF TAX REVENUE. Revenue from the tax
38-27 imposed under this subchapter shall be deposited in the venue
39-1 project fund of the municipality or county imposing the tax.
39-2 (Sections 334.309-334.350 reserved for expansion
39-3 SUBCHAPTER J. ATHLETIC EVENTS IN CERTAIN MUNICIPALITIES
39-4 Sec. 334.351. DEFINITION. In this subchapter, "athletic
39-5 event" means a postseason intercollegiate athletic football bowl
39-6 game that is held annually.
39-7 Sec. 334.352. APPLICATION OF SUBCHAPTER. This subchapter
39-8 applies only to a municipality with a population of more than
39-9 500,000 that is located in a county that borders the United Mexican
39-10 States.
39-11 Sec. 334.353. SHORT-TERM MOTOR VEHICLE RENTAL TAX. (a)
39-12 Notwithstanding any other provision of this chapter, a municipality
39-13 to which this subchapter applies may impose by ordinance a tax on
39-14 the rental in the municipality of a motor vehicle.
39-15 (b) The municipality may impose the tax only if the tax is
39-16 approved at an election called and held for that purpose.
39-17 (c) Except as otherwise provided by this subchapter,
39-18 Subchapter E applies to the tax imposed under this subchapter.
39-19 Sec. 334.354. USE OF REVENUE. Notwithstanding any other
39-20 provision of this chapter, the municipality may use revenue from
39-21 the tax to:
39-22 (1) pay the costs of collecting the tax;
39-23 (2) operate one or more athletic events in the
39-24 municipality; and
39-25 (3) pay costs associated with an athletic event in the
39-26 municipality, including paying the costs of planning, acquiring,
39-27 establishing, developing, advertising, promoting, conducting,
40-1 sponsoring, or otherwise supporting the event.
40-2 CHAPTER 335. SPORTS AND COMMUNITY VENUE DISTRICTS
40-3 SUBCHAPTER A. GENERAL PROVISIONS
40-4 Sec. 335.001. DEFINITIONS. In this chapter:
40-5 (1) "Approved venue project" has the meaning assigned
40-6 by Section 334.001, except that the approval of the project must
40-7 occur under this chapter.
40-8 (2) "Board" means the board of directors of a venue
40-9 district.
40-10 (3) "District" means a venue district created under
40-11 this chapter.
40-12 (4) "Related infrastructure" has the meaning assigned
40-13 by Section 334.001.
40-14 (5) "Venue" has the meaning assigned by Section
40-15 334.001.
40-16 (6) "Venue project" has the meaning assigned by
40-17 Section 334.001, except that the actions described by that section
40-18 must occur under this chapter.
40-19 Sec. 335.002. APPLICATION TO VENUE CONSTRUCTED UNDER OTHER
40-20 LAW. A district may use this chapter for a venue project relating
40-21 to a venue and related infrastructure planned, acquired,
40-22 established, developed, constructed, or renovated under other law,
40-23 including Section 4B, Development Corporation Act of 1979 (Article
40-24 5190.6, Vernon's Texas Civil Statutes), or Subchapter E, Chapter
40-25 451, Transportation Code.
40-26 Sec. 335.003. OTHER USES OF VENUE PERMITTED. This chapter
40-27 does not prohibit the use of a venue for an event that is not
41-1 related to a purpose described by Section 334.001, such as a
41-2 community-related event.
41-3 Sec. 335.004. SPECIFIC PERFORMANCE. (a) The legislature
41-4 expressly finds and determines that:
41-5 (1) the presence of a professional sports team in an
41-6 approved venue project built or renovated under this chapter
41-7 provides a unique value to the district that built or renovated the
41-8 project and to each political subdivision that created the district
41-9 that cannot be adequately valued in money; and
41-10 (2) the district that built or renovated the approved
41-11 venue project and each political subdivision that created the
41-12 district would suffer irreparable injury if a professional sports
41-13 team breaches its obligation to play its home games in the approved
41-14 venue project as required by an agreement between the sports team
41-15 and the district.
41-16 (b) An agreement described by Subsection (a)(2) shall be
41-17 enforceable by specific performance in the courts of this state. A
41-18 waiver of this remedy is contrary to public policy and is
41-19 unenforceable and void.
41-20 (Sections 335.005-335.020 reserved for expansion
41-21 SUBCHAPTER B. VENUE DISTRICT
41-22 Sec. 335.021. CREATION. A county and a municipality, two or
41-23 more counties, two or more municipalities, or a combination of
41-24 municipalities, counties, or municipalities and counties may create
41-25 a venue district under this chapter to plan, acquire, establish,
41-26 develop, construct, or renovate one or more venue projects in the
41-27 district subject to voter approval under Subchapter D.
42-1 Sec. 335.022. ORDER CREATING DISTRICT. A county and a
42-2 municipality, two or more counties, two or more municipalities, or
42-3 a combination of municipalities, counties, or municipalities and
42-4 counties may create a district under this chapter by adopting
42-5 concurrent orders. A concurrent order must:
42-6 (1) contain identical provisions;
42-7 (2) define the boundaries of the district to be
42-8 coextensive with the combined boundaries of each creating political
42-9 subdivision; and
42-10 (3) designate the number of directors, the manner of
42-11 appointment, and the manner in which the chair will be appointed in
42-12 accordance with Section 335.031.
42-13 Sec. 335.023. POLITICAL SUBDIVISION; OPEN MEETINGS. (a) A
42-14 district is a political subdivision of the creating political
42-15 subdivisions and of this state.
42-16 (b) A district is subject to Chapter 551, Government Code.
42-17 (Sections 335.024-335.030 reserved for expansion
42-18 SUBCHAPTER C. BOARD OF DIRECTORS
42-19 Sec. 335.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) A
42-20 district is governed by a board of at least four directors.
42-21 (b) The board is appointed by the mayors or county judges,
42-22 or both as appropriate, of the political subdivisions that create
42-23 the district in accordance with the concurrent order.
42-24 (c) Directors serve staggered two-year terms. A director
42-25 may be removed by the appointing mayor or county judge at any time
42-26 without cause. Successor directors are appointed in the same
42-27 manner as the original appointees.
43-1 (d) To qualify to serve as a director, a person must be a
43-2 resident of the appointing political subdivision. An employee,
43-3 officer, or member of the governing body of the appointing
43-4 political subdivision may serve as a director, but may not have a
43-5 personal interest in a contract executed by the district other than
43-6 as an employee, officer, or member of the governing body of the
43-7 political subdivision.
43-8 Sec. 335.032. COMPENSATION. A board member is not entitled
43-9 to compensation, but is entitled to reimbursement for actual and
43-10 necessary expenses.
43-11 Sec. 335.033. MEETINGS. The board shall conduct its
43-12 meetings in the district.
43-13 Sec. 335.034. OFFICERS. The presiding officer is designated
43-14 as provided by the concurrent order. The board shall designate
43-15 from the members of the board a secretary and other officers the
43-16 board considers necessary.
43-17 (Sections 335.035-335.050 reserved for expansion
43-18 SUBCHAPTER D. VENUE PROJECTS
43-19 Sec. 335.051. RESOLUTION AUTHORIZING PROJECT. (a) A
43-20 district by resolution may provide for the planning, acquisition,
43-21 establishment, development, construction, or renovation of a venue
43-22 project if:
43-23 (1) the comptroller determines under Section 335.052
43-24 or 335.053 that the implementation of the resolution will not have
43-25 a significant negative fiscal impact on state revenue;
43-26 (2) to the extent required by Section 335.0535 or
43-27 335.0536, a rapid transit authority determines that the
44-1 implementation of the resolution will not have a significant
44-2 negative impact on the authority's ability to provide services and
44-3 will not impair any existing contracts; and
44-4 (3) the resolution is approved by a majority of the
44-5 qualified voters of each political subdivision that created the
44-6 district voting at one election or at separate elections called and
44-7 held for that purpose under Section 335.054.
44-8 (b) The resolution must designate each venue project and
44-9 each method of financing authorized by this chapter that the
44-10 district wants to use to finance a project. A resolution may
44-11 designate more than one method of financing.
44-12 Sec. 335.052. STATE FISCAL IMPACT ANALYSIS. (a) Before
44-13 calling an election on the resolution under Section 335.054, the
44-14 district shall send a copy of the resolution to the comptroller.
44-15 (b) Before the 15th day after the date the comptroller
44-16 receives the copy of the resolution, the comptroller shall:
44-17 (1) perform an analysis to determine if approval and
44-18 implementation of the resolution will have a significant negative
44-19 fiscal impact on state revenue; and
44-20 (2) provide to the district written notice of the
44-21 results of the analysis.
44-22 (c) If the comptroller determines that implementation will
44-23 have a significant negative fiscal impact on state revenue, the
44-24 written analysis required under Subsection (b)(2) must include
44-25 information on how to change the resolution so that implementation
44-26 will not have a significant negative fiscal impact on state
44-27 revenue.
45-1 (d) If the comptroller does not complete the analysis and
45-2 provide the notice before the 30th day after the date the
45-3 comptroller receives the copy of the resolution, the comptroller is
45-4 considered to have determined that approval and implementation of
45-5 the resolution will not have a significant negative fiscal impact
45-6 on state revenue.
45-7 Sec. 335.053. APPEAL OF COMPTROLLER DETERMINATION. (a) If
45-8 the comptroller determines under Section 335.052 that
45-9 implementation of the resolution will have a significant negative
45-10 fiscal impact on state revenue, the district may contest the
45-11 finding by filing an appeal with the comptroller not later than the
45-12 10th day after the date the district receives the written notice
45-13 under Section 335.052.
45-14 (b) Before the 11th day after the date the comptroller
45-15 receives the appeal under Subsection (a), the comptroller shall
45-16 perform a new analysis to determine if implementation of the
45-17 resolution will have a significant negative fiscal impact on state
45-18 revenue and provide to the district written notice of the results
45-19 of the analysis.
45-20 (c) If the comptroller again determines that implementation
45-21 will have a significant negative fiscal impact on state revenue,
45-22 the written analysis required under Subsection (b) must include
45-23 additional information on how to change the resolution so that
45-24 implementation will not have a significant negative fiscal impact
45-25 on state revenue.
45-26 (d) If the comptroller does not comply with Subsection (b)
45-27 before the 30th day after the date the comptroller receives the
46-1 appeal or request for information, the comptroller is considered to
46-2 have determined that approval and implementation of the resolution
46-3 will not have a significant negative fiscal impact on state
46-4 revenue.
46-5 Sec. 335.0535. TRANSPORTATION AUTHORITY IMPACT ANALYSIS.
46-6 (a) If the resolution contains a proposed sales and use tax under
46-7 Subchapter D, Chapter 334, and imposition of the tax would result
46-8 in the reduction of the tax rate of a rapid transit authority
46-9 created under Chapter 451, Transportation Code, or a regional
46-10 transportation authority created under Chapter 452, Transportation
46-11 Code, the district shall send a copy of the resolution to the
46-12 authority before calling an election on the resolution under
46-13 Section 335.054.
46-14 (b) Before the 30th day after the date the rapid transit
46-15 authority receives the copy of the resolution, the authority shall:
46-16 (1) perform an analysis to determine if implementation
46-17 of the proposed sales and use tax and the resulting reduction in
46-18 the authority's tax rate will:
46-19 (A) have a significant negative impact on the
46-20 authority's ability to provide services; or
46-21 (B) impair any existing contracts; and
46-22 (2) provide to the district written notice of the
46-23 results of the analysis.
46-24 (c) If the rapid transit authority determines that
46-25 implementation of the resolution will have a significant negative
46-26 impact on the authority's ability to provide services or will
46-27 impair any existing contracts, the written analysis required under
47-1 Subsection (b)(2) must include information on how to change the
47-2 resolution so that implementation will not have a significant
47-3 negative impact on the authority's ability to provide service or
47-4 will not impair any existing contracts.
47-5 (d) If the rapid transit authority does not complete the
47-6 analysis and provide the notice before the 30th day after the date
47-7 the authority receives the copy of the resolution, the authority is
47-8 considered to have determined that implementation of the resolution
47-9 will not have a significant negative impact on the authority's
47-10 ability to provide services and will not impair any existing
47-11 contracts.
47-12 Sec. 335.0536. APPEAL OF AUTHORITY DETERMINATION. (a) If a
47-13 rapid transit authority determines under Section 335.0535 that
47-14 implementation of the resolution will have a significant negative
47-15 impact on the authority's ability to provide services or will
47-16 impair an existing contract, the district may contest the finding
47-17 by filing an appeal with the authority not later than the 10th day
47-18 after the date the district receives the written notice under
47-19 Section 335.0535.
47-20 (b) Before the 11th day after the date the rapid transit
47-21 authority receives the appeal under Subsection (a), the authority
47-22 shall perform a new analysis to determine if implementation of the
47-23 resolution will have a significant negative impact on the
47-24 authority's ability to provide services or will impair an existing
47-25 contract and provide to the district written notice of the results
47-26 of the analysis.
47-27 (c) If the authority again determines that implementation
48-1 will have a significant negative impact on the authority's ability
48-2 to provide services or will impair an existing contract, the
48-3 written analysis required under Subsection (b) must include
48-4 additional information on how to change the resolution so that
48-5 implementation will not have a significant negative impact on the
48-6 authority's ability to provide services and will not impair an
48-7 existing contract.
48-8 (d) If the rapid transit authority does not comply with
48-9 Subsection (b) before the 11th day after the date the authority
48-10 receives the appeal or request for information, the authority is
48-11 considered to have determined that approval and implementation of
48-12 the resolution will not have a significant negative impact on the
48-13 authority's ability to provide services and will not impair any
48-14 existing contracts.
48-15 Sec. 335.054. ELECTION. (a) If the comptroller determines
48-16 under Section 335.052 or 335.053 that implementation of the
48-17 resolution will not have a significant negative fiscal impact on
48-18 state revenue, and, if applicable, the rapid transit authority
48-19 determines under Section 335.0535 or 335.0536 that the
48-20 implementation will not have a significant impact on the
48-21 authority's ability to provide service and will not impair any
48-22 existing contracts, the board may order an election or elections on
48-23 the question of approving and implementing the resolution. In a
48-24 district created by a county with a population of more than 2.2
48-25 million and a municipality with a population of more than 1.2
48-26 million, the board may order one district-wide election or may
48-27 order a separate election in each political subdivision that
49-1 created the district. The election or elections shall be held on
49-2 the same day.
49-3 (b) The order calling the election or elections must:
49-4 (1) allow the voters to vote separately on each venue
49-5 project;
49-6 (2) designate the venue project;
49-7 (3) designate each method of financing authorized by
49-8 this chapter that the district wants to use to finance the project
49-9 and the maximum rate of each method; and
49-10 (4) allow the voters to vote, in the same proposition
49-11 or in separate propositions, on each method of financing authorized
49-12 by this chapter that the district wants to use to finance the
49-13 project and the maximum rate of each method.
49-14 (c) The ballot at the election or elections held under this
49-15 section must be printed to permit voting for or against the
49-16 proposition: "Authorizing ________ (insert name of district) to
49-17 __________ (insert description of venue project) and to impose a
49-18 __________ tax (insert type of tax) at the rate of ________ (insert
49-19 maximum rate) for the purpose of financing the venue project."
49-20 (d) If more than one method of financing is to be voted on
49-21 in one proposition, the ballot must be printed to permit voting for
49-22 or against the proposition: "Authorizing _________ (insert name of
49-23 district) to __________ (insert description of venue project) and
49-24 to impose a __________ tax at the rate of ________ (insert each
49-25 type of tax and the maximum rate of each tax) for the purpose of
49-26 financing the venue project."
49-27 (e) If a majority of the votes cast at the district-wide
50-1 election or at the election in each creating political subdivision
50-2 approves the proposition authorizing the project, the district may
50-3 implement the resolution. If separate elections are held and a
50-4 majority of the votes cast in one or more of the creating political
50-5 subdivisions disapproves the proposition authorizing the project,
50-6 the district may not implement the resolution. If the project is
50-7 approved, but one or more financing methods contained in separate
50-8 propositions are disapproved, the district may use only the
50-9 approved financing methods.
50-10 (f) The Election Code governs an election held under this
50-11 chapter.
50-12 (Sections 335.055-335.070 reserved for expansion
50-13 SUBCHAPTER E. POWERS AND DUTIES
50-14 Sec. 335.071. GENERAL POWERS OF DISTRICT. (a) A district
50-15 may:
50-16 (1) perform any act necessary to the full exercise of
50-17 the district's powers;
50-18 (2) accept a gift, grant, or loan from a:
50-19 (A) department or agency of the United States;
50-20 (B) department, agency, or political subdivision
50-21 of this state; or
50-22 (C) public or private person;
50-23 (3) acquire, sell, lease, convey, or otherwise dispose
50-24 of property or an interest in property, including a right-of-way or
50-25 easement or an approved venue project, under terms and conditions
50-26 determined by the district;
50-27 (4) employ necessary personnel; and
51-1 (5) adopt rules to govern the operation of the
51-2 district and its employees and property.
51-3 (b) A district may contract with a public or private person,
51-4 including one or more political subdivisions that created the
51-5 district or a sports team, club, organization, or other entity, to:
51-6 (1) plan, acquire, establish, develop, construct, or
51-7 renovate an approved venue project; or
51-8 (2) perform any other act the district is authorized
51-9 to perform under this chapter, other than conducting an election
51-10 under this chapter.
51-11 (c) A district may contract with or enter into an interlocal
51-12 agreement with a school district, junior or community college
51-13 district, or an institution of higher education as defined by
51-14 Section 61.003, Education Code, for a purpose described by
51-15 Subsection (b). The contract or interlocal agreement may provide
51-16 for joint ownership and operation or joint use.
51-17 (d) The competitive bidding laws, including Chapter 271, do
51-18 not apply to the planning, acquisition, establishment, development,
51-19 construction, or renovation of an approved venue project.
51-20 (e) A district may impose any tax a municipality or county
51-21 may impose under Chapter 334, subject to approval of the voters of
51-22 the district as prescribed by this chapter and Chapter 334. The
51-23 district shall impose the tax in the same manner as a county or
51-24 municipality and may issue bonds in lieu of a county or
51-25 municipality as required by Chapter 334.
51-26 (f) A district may not levy an ad valorem tax.
51-27 (g) In a transaction with another public entity that is made
52-1 as provided by Subsection (a)(3), the public purpose found by the
52-2 legislature under Section 335.074 is adequate consideration for the
52-3 district and the other public entity.
52-4 (h) A district has the right and power of eminent domain
52-5 under Chapter 21, Property Code, to acquire and condemn any
52-6 interest, including a fee simple interest, in real property in the
52-7 district, in connection with the planning, acquisition,
52-8 establishment, development, construction, renovation, repair,
52-9 maintenance, or operation of an approved venue project. A district
52-10 is not required to provide bond for appeal or bond for costs under
52-11 Section 21.021(a)(2) or (3), Property Code, in any lawsuit to which
52-12 the district is a party and is not required to deposit more than
52-13 the amount of the award in a suit.
52-14 Sec. 335.0715. USE OF FINANCING FOR CERTAIN PROJECTS.
52-15 Notwithstanding any other provision of this chapter, a district, a
52-16 municipality or county that created the district, or an entity
52-17 created by or acting on behalf of or in conjunction with the
52-18 district, municipality, or county, that contracts with a
52-19 professional sports team or the team's owner or representative on
52-20 or before November 1, 1998, for the team to relocate and play at an
52-21 arena, coliseum, or stadium in the district may not use any method
52-22 of financing authorized by this chapter to finance the acquisition
52-23 or construction of the arena, coliseum, or stadium if the team is
52-24 playing under an existing contract and is located in another arena,
52-25 coliseum, or stadium owned by a different municipality or county in
52-26 this state unless the governing body of that different municipality
52-27 or county consents to the contract.
53-1 Sec. 335.072. VENUE PROJECT FUND. (a) A district in which
53-2 an approved venue project is located shall establish by resolution
53-3 a fund known as the venue project fund. The district shall
53-4 establish separate accounts within the fund for the various revenue
53-5 sources.
53-6 (b) The district shall deposit into the venue project fund:
53-7 (1) the proceeds from any tax imposed by the district;
53-8 (2) all revenue from the sale of bonds or other
53-9 obligations by the district;
53-10 (3) money received under Section 335.075 from a
53-11 political subdivision that created the district; and
53-12 (4) any other money required by law to be deposited in
53-13 the fund.
53-14 (c) The district may deposit into the venue project fund:
53-15 (1) money received by the district from innovative
53-16 funding concepts such as the sale or lease of luxury boxes or the
53-17 sale of licenses for personal seats; and
53-18 (2) any other revenue received by the district from
53-19 the approved venue project, including stadium rental payments and
53-20 revenue from concessions and parking.
53-21 (d) The district may use money in the venue project fund to:
53-22 (1) reimburse or pay the costs of planning, acquiring,
53-23 establishing, developing, constructing, or renovating one or more
53-24 approved venue projects in the district;
53-25 (2) pay the principal of, interest on, and other costs
53-26 relating to bonds or other obligations issued by the district or
53-27 to refund bonds or other obligations; or
54-1 (3) pay the costs of operating or maintaining one or
54-2 more approved venue projects.
54-3 (e) Money deposited into the venue project fund, including
54-4 money deposited under Subsection (c), is the property of the
54-5 district depositing the money.
54-6 Sec. 335.0725. BOOKS, RECORDS, AND PAPERS. The books,
54-7 records, and papers of the district relating to an approved venue
54-8 project and the revenue used to finance the project are public
54-9 information and subject to disclosure under Chapter 552, Government
54-10 Code.
54-11 Sec. 335.073. BONDS AND OTHER OBLIGATIONS. (a) A district
54-12 in which an approved venue project is located may issue bonds,
54-13 including revenue bonds and refunding bonds, or other obligations
54-14 to pay the costs of the approved venue project. For a district
54-15 created by a county with a population of more than 2.2 million and
54-16 a municipality with a population of more than 1.2 million, the
54-17 power of the district to issue bonds or other obligations is
54-18 subject to the prior approval by the governing bodies of the county
54-19 and municipality.
54-20 (b) The bonds or other obligations and the proceedings
54-21 authorizing the bonds or other obligations shall be submitted to
54-22 the attorney general for review and approval as required by Article
54-23 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
54-24 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
54-25 (c) The bonds or other obligations must be payable from and
54-26 secured by the designated revenues in the venue project fund.
54-27 (d) The bonds or other obligations may mature serially or
55-1 otherwise not more than 30 years from their date of issuance.
55-2 (e) The bonds or other obligations are not a debt of and do
55-3 not create a claim for payment against the revenue or property of
55-4 the district other than the revenue sources pledged and an approved
55-5 venue project for which the bonds are issued.
55-6 (f) A district may issue short term obligations and enter
55-7 into credit agreements under Chapter 656, Acts of the 68th
55-8 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
55-9 Civil Statutes). For purposes of that Act, a district is a "public
55-10 utility" and an approved venue project is an "eligible project."
55-11 Sec. 335.074. PUBLIC PURPOSE OF VENUE PROJECT. (a) The
55-12 legislature finds for all constitutional and statutory purposes
55-13 that an approved venue project is owned, used, and held for public
55-14 purposes by the district.
55-15 (b) Section 25.07(a), Tax Code, does not apply to a
55-16 leasehold or other possessory interest granted by the district
55-17 while the district owns the venue project.
55-18 (c) The project is exempt from taxation under Section 11.11,
55-19 Tax Code, while the district owns the venue project.
55-20 (d) If approval and implementation of a resolution under
55-21 this chapter results in the removal from a school district's
55-22 property tax rolls of real property otherwise subject to ad valorem
55-23 taxation, the operator of the approved venue project located on
55-24 that real property shall pay to the school district on January 1 of
55-25 each year in which the project is in operation and in which the
55-26 real property is exempt from ad valorem taxation an amount equal to
55-27 the ad valorem taxes that would otherwise have been levied for the
56-1 preceding tax year on that real property by the school district,
56-2 without including the value of any improvements. This subsection
56-3 does not apply if the operator of the project is a political
56-4 subdivision of this state.
56-5 Sec. 335.075. CONTRIBUTION OR DEDICATION OF CERTAIN REVENUE
56-6 BY POLITICAL SUBDIVISION. (a) A political subdivision, including
56-7 a metropolitan rapid transit authority created under Chapter 451,
56-8 Transportation Code, may contribute or dedicate to the district all
56-9 or part of the sales and use tax revenue received by the political
56-10 subdivision that is generated, paid, or collected by any or all
56-11 businesses operating in an approved venue project. If the
56-12 political subdivision contributes or dedicates the revenue to
56-13 assist the district in securing bonds or other obligations,
56-14 including refunding bonds, that are issued to provide funding for
56-15 an approved venue project, the political subdivision may not make a
56-16 contribution or dedication for that purpose after the date on which
56-17 those bonds or other obligations are no longer outstanding.
56-18 (b) A political subdivision may contribute or dedicate sales
56-19 and use tax revenue under this section only if the governing body
56-20 or governing board of the political subdivision determines that the
56-21 approved venue project from which the revenue was or will be
56-22 derived will contribute to the economic, cultural, or recreational
56-23 development or well-being of the residents of the political
56-24 subdivision.
56-25 (c) The district shall deposit revenue contributed or
56-26 dedicated under this section in the venue project fund and may use
56-27 the revenue in the same manner as any other money deposited in the
57-1 fund.
57-2 (d) A contribution or dedication of revenue under this
57-3 section is not a "method of financing" of the district as that term
57-4 is used in Subchapter D.
57-5 SECTION 2. Section 4A, Development Corporation Act of 1979
57-6 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
57-7 adding Subsection (s) to read as follows:
57-8 (s)(1) A city that creates or has created a corporation
57-9 governed by this section may submit to the voters of the city, at a
57-10 separate election to be held on a uniform election date or at an
57-11 election held under another provision of this Act, including the
57-12 election at which the proposition to initially authorize the
57-13 collection of a sales and use tax for the benefit of the
57-14 corporation is submitted, a ballot proposition that authorizes the
57-15 corporation to use the sales and use tax, including any amount
57-16 previously authorized and collected, for a specific project or for
57-17 a specific category of projects, including a sports venue and
57-18 related infrastructure, that does not qualify under this section
57-19 but qualifies under Section 4B of this Act. Prior approval of a
57-20 specific project at an election or completion of a specific project
57-21 approved at an election does not prohibit a city from seeking voter
57-22 approval of an additional project or category of projects under
57-23 this subsection to be funded from the same sales and use tax.
57-24 (2) In the election to authorize the use of the sales
57-25 or use tax for a specific project or for a specific category of
57-26 projects not authorized under this section, including a sports
57-27 venue and related infrastructure, the project or category of
58-1 projects must be clearly described on the ballot so that a voter
58-2 will be able to discern the limits of the specific project or
58-3 category of projects authorized by the proposition. If maintenance
58-4 and operating costs of an otherwise authorized facility are to be
58-5 paid from the sales or use tax, the ballot language must clearly
58-6 state that fact.
58-7 (3) Before an election may be held under this
58-8 subsection, a public hearing shall be held in the city to inform
58-9 the residents of the city of the cost and impact of the project or
58-10 category of projects. At least 30 days before the date set for the
58-11 hearing, a notice of the date, time, place, and subject of the
58-12 hearing shall be published in a newspaper with general circulation
58-13 in the city in which the project is located. The notice shall be
58-14 published on a weekly basis until the date of the hearing.
58-15 (4) If a majority of the voters voting on the issue do
58-16 not approve a specific project or a specific category of projects
58-17 at an election under this subsection, another election may not be
58-18 held on the same project or category of projects before the first
58-19 anniversary of the date of the most recent election disapproving
58-20 the project or category of projects.
58-21 (5) In this subsection:
58-22 (A) "Related infrastructure" has the meaning
58-23 assigned by Section 334.001, Local Government Code.
58-24 (B) "Sports venue" means an arena, coliseum,
58-25 stadium, or other type of area or facility:
58-26 (i) that is primarily used or is planned
58-27 for primary use for one or more professional or amateur sports or
59-1 athletics events; and
59-2 (ii) for which a fee for admission to the
59-3 sports or athletics events, other than occasional civic,
59-4 charitable, or promotional events, is charged or is planned to be
59-5 charged.
59-6 SECTION 3. Section 4B, Development Corporation Act of 1979
59-7 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
59-8 adding Subsections (a-3) and (a-4) to read as follows:
59-9 (a-3)(1) A city that creates or has created a corporation
59-10 governed by this section may submit to the voters of the city, at a
59-11 separate election to be held on a uniform election date or at an
59-12 election held under another provision of this Act, including the
59-13 election at which the proposition to initially authorize the
59-14 collection of a sales and use tax for the benefit of the
59-15 corporation is submitted, a ballot proposition that authorizes the
59-16 corporation to use the sales and use tax, including any amount
59-17 previously authorized and collected, for a specific sports venue
59-18 project, including related infrastructure, or for a specific
59-19 category of sports venue projects, including related
59-20 infrastructure. Prior approval of a specific sports venue project
59-21 at an election or completion of a specific sports venue project
59-22 approved at an election does not prohibit a city from seeking voter
59-23 approval of an additional project or category of projects under
59-24 this subsection to be funded from the same sales and use tax.
59-25 (2) In the election to authorize the use of the sales
59-26 or use tax for a specific sports venue project or for a specific
59-27 category of sports venue projects, the project or category of
60-1 projects must be clearly described on the ballot so that a voter
60-2 will be able to discern the limits of the specific project or
60-3 category of projects authorized by the proposition. If maintenance
60-4 and operating costs of an otherwise authorized facility are to be
60-5 paid from the sales or use tax, the ballot language must clearly
60-6 state that fact.
60-7 (3) Before an election may be held under this
60-8 subsection, a public hearing shall be held in the city to inform
60-9 the residents of the city of the cost and impact of the project or
60-10 category of projects. At least 30 days before the date set for the
60-11 hearing, a notice of the date, time, place, and subject of the
60-12 hearing shall be published in a newspaper with general circulation
60-13 in the city in which the project is located. The notice shall be
60-14 published on a weekly basis until the date of the hearing.
60-15 (4) If a majority of the voters voting on the issue do
60-16 not approve a specific sports venue project or a specific category
60-17 of sports venue projects at an election under this subsection,
60-18 another election may not be held on the same project or category of
60-19 projects before the first anniversary of the date of the most
60-20 recent election disapproving the project or category of projects.
60-21 (a-4) In this section:
60-22 (1) "Related infrastructure" has the meaning assigned
60-23 by Section 334.001, Local Government Code.
60-24 (2) "Sports venue" means an arena, coliseum, stadium,
60-25 or other type of area or facility that is primarily used or is
60-26 planned for primary use for one or more professional or amateur
60-27 sports or athletics events and for which a fee for admission to the
61-1 sports or athletics events, other than occasional civic,
61-2 charitable, or promotional events, is charged or is planned to be
61-3 charged. The term does not include an arena, coliseum, stadium, or
61-4 other type of area or facility that is or will be owned and
61-5 operated by a state-supported institution of higher education.
61-6 SECTION 4. Subchapter F, Chapter 321, Tax Code, is amended
61-7 by adding Section 321.508 to read as follows:
61-8 Sec. 321.508. PLEDGE OF TAX REVENUE. (a) A municipality
61-9 may call and hold an election on the issue of authorizing the
61-10 municipality to pledge a percentage of the sales and use tax
61-11 revenue received under Section 321.101(a) or (b), or both, to the
61-12 payment of obligations issued to pay all or part of the costs of
61-13 one or more sports and community venue projects located in the
61-14 municipality.
61-15 (b) The ballot at the election under this section must be
61-16 printed to permit voting for or against the proposition:
61-17 "Authorizing the City of ______ (insert name of municipality) to
61-18 pledge not more than ______ percent (insert percentage not to
61-19 exceed 25 percent) of the revenue received from the _________
61-20 (insert municipal sales and use tax, additional municipal sales and
61-21 use tax, or both) previously adopted in the city to the payment of
61-22 obligations issued to pay all or part of the costs of _________
61-23 (insert description of each sports and community venue project)."
61-24 (c) If a majority of the voters vote in favor of the
61-25 proposition, the municipality may:
61-26 (1) issue bonds, notes, or other obligations that are
61-27 payable from the pledged revenues to pay for all or part of the
62-1 costs of the sports and community venue project or projects
62-2 described in the proposition; and
62-3 (2) set aside the portion of the revenue approved at
62-4 the election that the municipality actually receives and pledge
62-5 that revenue as security for the payment of the bonds, notes, or
62-6 other obligations.
62-7 (d) If the municipality pledges revenue under Subsection
62-8 (c), the pledge and security interest shall continue while the
62-9 bonds, notes, or obligations, including refunding obligations, are
62-10 outstanding and unpaid.
62-11 (e) The municipality may direct the comptroller to deposit
62-12 the pledged revenue to a trust or account as may be required to
62-13 obtain the financing and to protect the related security interest.
62-14 (f) Sections 321.506 and 321.507 do not apply to taxes
62-15 pledged under this section.
62-16 (g) In this section, "sports and community venue project"
62-17 has the meaning assigned by Section 334.001, Local Government Code.
62-18 SECTION 5. The changes in law made by this Act do not apply
62-19 to the use of tax revenue pledged to secure bonds issued before the
62-20 effective date of this Act. Tax revenue pledged to secure bonds
62-21 issued before the effective date of this Act is governed by the law
62-22 in effect on the date the bonds were issued, and that law is
62-23 continued in effect for that purpose.
62-24 SECTION 6. (a) This Act does not affect the authority of:
62-25 (1) a municipality that created an industrial
62-26 development corporation under Section 4A or 4B, Development
62-27 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
63-1 Statutes), before the effective date of this Act to continue to
63-2 collect any tax authorized for the benefit of the corporation
63-3 before that date; or
63-4 (2) an industrial development corporation described by
63-5 Subdivision (1) to continue a project or category of projects
63-6 authorized for the corporation before the effective date of this
63-7 Act that the corporation had begun before that date.
63-8 (b) A tax collected under Subsection (a)(1) of this section
63-9 or a project continued under Subsection (a)(2) of this section is
63-10 subject to the same restrictions applicable under Sections 4A and
63-11 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
63-12 Texas Civil Statutes), as those sections existed immediately before
63-13 the effective date of this Act, and that law is continued in effect
63-14 for that purpose.
63-15 SECTION 7. Notwithstanding any other provision of Chapter
63-16 334 or 335, Local Government Code, as added by this Act, an
63-17 election to approve a sports and community venue project, to
63-18 approve a method of financing for the venue project, other than the
63-19 imposition of a sales and use tax or a facility use tax, or to
63-20 create a sports and community venue district in a specific county
63-21 or municipality is not necessary if, at an election held before the
63-22 effective date of this Act, the voters of that county, or of the
63-23 county in which the municipality or district is primarily located,
63-24 authorized the establishment and operation of new or renovated
63-25 stadiums, arenas, or other facilities for professional sports
63-26 teams. This section:
63-27 (1) negates the necessity of an election only for the
64-1 type of venue project approved at the previous election; and
64-2 (2) does not negate the necessity of an election for
64-3 approval of the imposition of a sales and use tax or a facility use
64-4 tax to finance a venue project.
64-5 SECTION 8. Notwithstanding any other provision of Chapter
64-6 334 or 335, Local Government Code, as added by this Act, a
64-7 municipality, county, or venue district is not required to obtain
64-8 from the comptroller a determination of state fiscal impact if, at
64-9 an election held before the effective date of this Act, the voters
64-10 of that county, or of the county in which the municipality or
64-11 district is primarily located, authorized the establishment and
64-12 operation of new or renovated stadiums, arenas, or other facilities
64-13 for professional sports teams. This section negates the necessity
64-14 of a comptroller determination only for the type of venue project
64-15 approved at the previous election.
64-16 SECTION 9. All acts or proceedings authorized or undertaken
64-17 by a sports and community venue district or by a county or
64-18 municipality that created the district that were undertaken before
64-19 the effective date of this Act, including acts or proceedings to
64-20 create the district, are validated and confirmed in all respects,
64-21 provided that the validation and confirmation do not apply to an
64-22 act or proceeding that is subject to litigation that is pending on
64-23 the effective date of this Act.
64-24 SECTION 10. If any provision of this Act or its application
64-25 to any person or circumstance is held invalid, the invalidity does
64-26 not affect other provisions or applications of this Act that can be
64-27 given effect without the invalid provision or application, and to
65-1 this end the provisions of this Act are severable.
65-2 SECTION 11. The importance of this legislation and the
65-3 crowded condition of the calendars in both houses create an
65-4 emergency and an imperative public necessity that the
65-5 constitutional rule requiring bills to be read on three several
65-6 days in each house be suspended, and this rule is hereby suspended,
65-7 and that this Act take effect and be in force from and after its
65-8 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 92 was passed by the House on May 8,
1997, by a non-record vote; and that the House concurred in Senate
amendments to H.B. No. 92 on May 22, 1997, by the following vote:
Yeas 88, Nays 56, 2 present, not voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 92 was passed by the Senate, with
amendments, on May 20, 1997, by the following vote: Yeas 23, Nays
7, 1 present, not voting.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor