By Coleman                                      H.B. No. 2929

      75R7780 CBH-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the taxes of which a qualified hotel project is

 1-3     entitled to a refund, rebate, or payment and to the collection of

 1-4     those taxes.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 151.429, Tax Code, is amended by amending

 1-7     Subsection (h) and adding Subsection (i) to read as follows:

 1-8           (h)  Notwithstanding the other provisions of this section,

 1-9     the owner of a qualified hotel project shall receive a rebate,

1-10     refund, or payment of:

1-11                 (1)  100 percent of the sales and use taxes paid or

1-12     collected by the qualified hotel project or businesses located in

1-13     the qualified hotel project pursuant to this chapter;

1-14                 (2)  [and] 100 percent of the hotel occupancy taxes

1-15     paid by persons for the use or possession of or for the right to

1-16     the use or possession of a room or space at the qualified hotel

1-17     project pursuant to the provisions of Chatper 156; and

1-18                 (3)  100 percent of the mixed beverage taxes paid by

1-19     permittees located at the qualified hotel project that are not

1-20     rebated to the county or municipality under Section 183.051 [during

1-21     the first 10 years after such qualified hotel project is open for

1-22     initial occupancy].

1-23           (i)  The owner of a qualified hotel project shall receive the

1-24     rebate, refund, or payment prescribed by Subsection (h) for taxes

 2-1     paid or collected:

 2-2                 (1)  beginning on the date construction of the project

 2-3     begins; and

 2-4                 (2)  ending on the day before the 10th anniversary of

 2-5     the date the project opens for initial occupancy.

 2-6           SECTION 2.  Subchapter I, Chapter 151, Tax Code, is amended

 2-7     by adding Section 151.4295 to read as follows:

 2-8           Sec. 151.4295.  COLLECTION OF CERTAIN TAXES.  (a)

 2-9     Notwithstanding any other provision of this code, the comptroller

2-10     shall enter into an  agreement with the owner of a qualified hotel

2-11     project entitled to receive a rebate, refund, or payment under

2-12     Section 151.429 under which the owner will collect those taxes as

2-13     the comptroller's agent and retain the taxes.

2-14           (b)  An agreement made under Subsection (a) must:

2-15                 (1)  specify the date on which the agreement will begin

2-16     and end;

2-17                 (2)  require the owner of the qualified hotel project

2-18     to file periodic reports with the comptroller that include

2-19     detailed information relating to the total amount of each tax

2-20     collected and retained by the owner during the reporting period;

2-21     and

2-22                 (3)  require the owner to keep and retain records

2-23     relating to the total amount of each tax collected and retained by

2-24     the owner.

2-25           (c)  After the comptroller enters into an agreement under

2-26     Subsection (a), the comptroller shall issue to the owner of the

2-27     qualified hotel project and to each owner of a business located in

 3-1     the qualified hotel project a certificate that:

 3-2                 (1)  authorizes each owner to make tax-free purchases

 3-3     of taxable items relating to the qualified hotel project or

 3-4     business by presenting the certificate to the seller; and

 3-5                 (2)  requires a business located in the qualified hotel

 3-6     project to remit to the owner of the qualified hotel project any

 3-7     taxes that would otherwise be remitted to the comptroller and

 3-8     subject to rebate, refund, or payment under Section 151.429.

 3-9           SECTION 3.  (a)  This Act takes effect on the first day of

3-10     the first calendar quarter beginning   on or after the earliest

3-11     date that it may  take effect under Section 39, Article III, Texas

3-12     Constitution.

3-13           (b)  The change in law made by this Act does not affect taxes

3-14     imposed before the effective date of this Act, and the law in

3-15     effect before that date is continued in effect for purposes of the

3-16     liability for and collection of those taxes.

3-17           SECTION 4.  The importance of this legislation and the

3-18     crowded condition of the calendars in both houses create an

3-19     emergency and an imperative public necessity that the

3-20     constitutional rule requiring bills to be read on three several

3-21     days in each house be suspended, and this rule is hereby suspended.