By Brimer H.B. No. 2844
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the purposes for which the municipal hotel occupancy
1-3 tax may be used.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 351.001(2), Tax Code, is amended to read
1-6 as follows:
1-7 (2) "Convention center facilities" or "convention
1-8 center complex" means facilities that are primarily used to host
1-9 conventions and meetings. The term means civic centers, civic
1-10 center buildings, auditoriums, and exhibition halls [, and
1-11 coliseums] that are owned by the municipality or other
1-12 governmental entity or that are managed in whole or part by the
1-13 municipality, hotels owned by the municipality or a nonprofit
1-14 municipally sponsored local government corporation created under
1-15 Chapter 431, Transportation Code, within 1,000 feet of a convention
1-16 center owned by a municipality with a population of 1,500,000 or
1-17 more, or a historic hotel owned by a municipality or a nonprofit
1-18 municipally sponsored local government corporation created under
1-19 Chapter 431, Transportation Code, within one mile of a convention
1-20 center owned by a municipality with a population of 1,500,000 or
1-21 more. The term includes parking areas or facilities that are for
1-22 the parking or storage of conveyances and that are located at or in
1-23 the vicinity of other convention center facilities. The term also
1-24 includes a hotel owned by or located on land that is owned by an
2-1 eligible central municipality or by a nonprofit corporation acting
2-2 on behalf of an eligible central municipality and is located within
2-3 1,000 feet of a convention center facility owned by the
2-4 municipality.
2-5 SECTION 2. Section 151.429, Tax Code, is amended by amending
2-6 Subsection (h) and adding Subsection (i) to read as follows:
2-7 (h) Notwithstanding Subsections (a) through (g) [the other
2-8 provisions of this section], the owner of a qualified hotel project
2-9 shall receive a rebate, refund, or payment of 100 percent of the
2-10 sales and use taxes paid or collected by the qualified hotel
2-11 project or businesses located in the qualified hotel project
2-12 pursuant to this chapter and 100 percent of the hotel occupancy
2-13 taxes paid by persons for the use or possession of or for the right
2-14 to the use or possession of a room or space at the qualified hotel
2-15 project pursuant to the provisions of Chapter 156 during the first
2-16 10 years after such qualified hotel project is open for initial
2-17 occupancy. The rebate, refund, or payment of sales and use taxes
2-18 does not apply to a qualified hotel project described under
2-19 Subsection (i).
2-20 (i) After January 1, 1999, a qualified hotel project may be
2-21 constructed in each eligible central municipality, as defined by
2-22 Section 351.001. This subsection does not apply to a municipality
2-23 with a population of 1,500,000 or more.
2-24 SECTION 3. Section 351.102, Tax Code, is amended by adding
2-25 Subsection (c) to read as follows:
2-26 (c) An eligible central municipality may pledge the revenue
2-27 derived from the tax imposed under this chapter from a qualified
3-1 hotel project, as defined by Section 2303.003, Government Code,
3-2 that is owned by or located on land owned by the municipality or by
3-3 a nonprofit corporation acting on behalf of an eligible central
3-4 municipality and is located within 1,000 feet of a convention
3-5 center facility owned by the municipality for the payment of bonds
3-6 or other obligations issued or incurred to acquire, lease,
3-7 construct, and equip the hotel. For bonds or other obligations
3-8 issued under this subsection, an eligible central municipality may
3-9 only pledge revenue or other assets of the qualified hotel project
3-10 benefiting from those bonds or other obligations.
3-11 SECTION 4. Section 2303.003(8), Government Code, is amended
3-12 to read as follows:
3-13 (8) "Qualified hotel project" means a hotel proposed
3-14 to be constructed by a municipality or a nonprofit municipally
3-15 sponsored local government corporation created under Chapter 431,
3-16 Transportation Code, [the Texas Transportation Corporation Act
3-17 (Article 1528l, Vernon's Texas Civil Statutes)] that is within
3-18 1,000 feet of a convention center owned by a municipality having a
3-19 population of 1,500,000 or more, including shops, parking
3-20 facilities, and any other facilities ancillary to the hotel. The
3-21 term also includes a hotel owned by or located on land that is
3-22 owned by an eligible central municipality, as defined by Section
3-23 351.001, Tax Code, or by a nonprofit corporation acting on behalf
3-24 of an eligible central municipality, and is located within 1,000
3-25 feet of a convention center facility owned by the municipality,
3-26 including shops, parking facilities, and any other facilities
3-27 ancillary to the hotel.
4-1 SECTION 5. Section 2, Chapter 63, Acts of the 59th
4-2 Legislature, Regular Session, 1965 (Article 1269j-4.1, Vernon's
4-3 Texas Civil Statutes), is amended by adding Subsection (c) to read
4-4 as follows:
4-5 (c) An eligible central municipality, as defined by Section
4-6 351.001, Tax Code, may establish, acquire, lease as lessee or
4-7 lessor, purchase, construct, improve, enlarge, equip, repair,
4-8 operate, or maintain a hotel that is owned by or located on land
4-9 owned by the municipality or by a nonprofit corporation acting on
4-10 behalf of an eligible central municipality and is located within
4-11 1,000 feet of a convention center facility owned by the
4-12 municipality. An eligible central municipality may also issue
4-13 bonds or incur other obligations to acquire, lease, construct, or
4-14 equip a hotel that is owned by or located on land owned by the
4-15 municipality or by a nonprofit corporation acting on behalf of an
4-16 eligible central municipality and that is located within 1,000 feet
4-17 of a convention center owned by the municipality.
4-18 SECTION 6. (a) This Act takes effect September 1, 1999.
4-19 (b) This Act does not apply to the use of tax revenue
4-20 pledged to secure bonds issued before the effective date of this
4-21 Act. Tax revenue pledged to secure bonds issued before the
4-22 effective date of this Act is governed by the law in effect on the
4-23 date the bonds were issued, and that law is continued in effect for
4-24 that purpose.
4-25 (c) This Act does not apply to the use of tax revenue
4-26 pledged or dedicated before the effective date of this Act for the
4-27 acquisition of sites for and the construction, improvement,
5-1 enlarging, equipping, repairing, operation, and maintenance of
5-2 convention center facilities. Tax revenue pledged for these
5-3 purposes before the effective date of this Act is governed by the
5-4 law in effect on the date the revenue was pledged, and that law is
5-5 continued in effect for that purpose.
5-6 (d) This Act does not apply to the use of tax revenue for a
5-7 convention center complex that was under construction on the
5-8 effective date of this Act, including the pledging of such revenue
5-9 to secure bonds, additional bonds, and refunding bonds. Tax
5-10 revenue used for a convention center complex that was under
5-11 construction on the effective date of this Act is governed by the
5-12 law in effect on April 1, 1999, and that law is continued in effect
5-13 for that purpose.
5-14 SECTION 7. The importance of this legislation and the
5-15 crowded condition of the calendars in both houses create an
5-16 emergency and an imperative public necessity that the
5-17 constitutional rule requiring bills to be read on three several
5-18 days in each house be suspended, and this rule is hereby suspended.