1-1 By: Brimer (Senate Sponsor - Moncrief) H.B. No. 2844
1-2 (In the Senate - Received from the House April 21, 1999;
1-3 April 22, 1999, read first time and referred to Committee on
1-4 Economic Development; May 14, 1999, reported favorably by the
1-5 following vote: Yeas 5, Nays 1; May 14, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the purposes for which the municipal hotel occupancy
1-9 tax may be used.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 351.001(2), Tax Code, is amended to read
1-12 as follows:
1-13 (2) "Convention center facilities" or "convention
1-14 center complex" means facilities that are primarily used to host
1-15 conventions and meetings. The term means civic centers, civic
1-16 center buildings, auditoriums, and exhibition halls [, and
1-17 coliseums] that are owned by the municipality or other
1-18 governmental entity or that are managed in whole or part by the
1-19 municipality, hotels owned by the municipality or a nonprofit
1-20 municipally sponsored local government corporation created under
1-21 Chapter 431, Transportation Code, within 1,000 feet of a convention
1-22 center owned by a municipality with a population of 1,500,000 or
1-23 more, or a historic hotel owned by a municipality or a nonprofit
1-24 municipally sponsored local government corporation created under
1-25 Chapter 431, Transportation Code, within one mile of a convention
1-26 center owned by a municipality with a population of 1,500,000 or
1-27 more. The term includes parking areas or facilities that are for
1-28 the parking or storage of conveyances and that are located at or in
1-29 the vicinity of other convention center facilities. The term also
1-30 includes a hotel owned by or located on land that is owned by an
1-31 eligible central municipality or by a nonprofit corporation acting
1-32 on behalf of an eligible central municipality and is located within
1-33 1,000 feet of a convention center facility owned by the
1-34 municipality.
1-35 SECTION 2. Section 151.429, Tax Code, is amended by amending
1-36 Subsection (h) and adding Subsection (i) to read as follows:
1-37 (h) Notwithstanding Subsections (a) through (g) [the other
1-38 provisions of this section], the owner of a qualified hotel project
1-39 shall receive a rebate, refund, or payment of 100 percent of the
1-40 sales and use taxes paid or collected by the qualified hotel
1-41 project or businesses located in the qualified hotel project
1-42 pursuant to this chapter and 100 percent of the hotel occupancy
1-43 taxes paid by persons for the use or possession of or for the right
1-44 to the use or possession of a room or space at the qualified hotel
1-45 project pursuant to the provisions of Chapter 156 during the first
1-46 10 years after such qualified hotel project is open for initial
1-47 occupancy. The rebate, refund, or payment of sales and use taxes
1-48 does not apply to a qualified hotel project described under
1-49 Subsection (i).
1-50 (i) After January 1, 1999, a qualified hotel project may be
1-51 constructed in each eligible central municipality, as defined by
1-52 Section 351.001. This subsection does not apply to a municipality
1-53 with a population of 1,500,000 or more.
1-54 SECTION 3. Section 351.102, Tax Code, is amended by adding
1-55 Subsection (c) to read as follows:
1-56 (c) An eligible central municipality may pledge the revenue
1-57 derived from the tax imposed under this chapter from a qualified
1-58 hotel project, as defined by Section 2303.003, Government Code,
1-59 that is owned by or located on land owned by the municipality or by
1-60 a nonprofit corporation acting on behalf of an eligible central
1-61 municipality and is located within 1,000 feet of a convention
1-62 center facility owned by the municipality for the payment of bonds
1-63 or other obligations issued or incurred to acquire, lease,
1-64 construct, and equip the hotel. For bonds or other obligations
2-1 issued under this subsection, an eligible central municipality may
2-2 only pledge revenue or other assets of the qualified hotel project
2-3 benefiting from those bonds or other obligations.
2-4 SECTION 4. Section 2303.003(8), Government Code, is amended
2-5 to read as follows:
2-6 (8) "Qualified hotel project" means a hotel proposed
2-7 to be constructed by a municipality or a nonprofit municipally
2-8 sponsored local government corporation created under Chapter 431,
2-9 Transportation Code, [the Texas Transportation Corporation Act
2-10 (Article 1528l, Vernon's Texas Civil Statutes)] that is within
2-11 1,000 feet of a convention center owned by a municipality having a
2-12 population of 1,500,000 or more, including shops, parking
2-13 facilities, and any other facilities ancillary to the hotel. The
2-14 term also includes a hotel owned by or located on land that is
2-15 owned by an eligible central municipality, as defined by Section
2-16 351.001, Tax Code, or by a nonprofit corporation acting on behalf
2-17 of an eligible central municipality, and is located within 1,000
2-18 feet of a convention center facility owned by the municipality,
2-19 including shops, parking facilities, and any other facilities
2-20 ancillary to the hotel.
2-21 SECTION 5. Section 2, Chapter 63, Acts of the 59th
2-22 Legislature, Regular Session, 1965 (Article 1269j-4.1, Vernon's
2-23 Texas Civil Statutes), is amended by adding Subsection (c) to read
2-24 as follows:
2-25 (c) An eligible central municipality, as defined by Section
2-26 351.001, Tax Code, may establish, acquire, lease as lessee or
2-27 lessor, purchase, construct, improve, enlarge, equip, repair,
2-28 operate, or maintain a hotel that is owned by or located on land
2-29 owned by the municipality or by a nonprofit corporation acting on
2-30 behalf of an eligible central municipality and is located within
2-31 1,000 feet of a convention center facility owned by the
2-32 municipality. An eligible central municipality may also issue
2-33 bonds or incur other obligations to acquire, lease, construct, or
2-34 equip a hotel that is owned by or located on land owned by the
2-35 municipality or by a nonprofit corporation acting on behalf of an
2-36 eligible central municipality and that is located within 1,000 feet
2-37 of a convention center owned by the municipality.
2-38 SECTION 6. (a) This Act takes effect September 1, 1999.
2-39 (b) This Act does not apply to the use of tax revenue
2-40 pledged to secure bonds issued before the effective date of this
2-41 Act. Tax revenue pledged to secure bonds issued before the
2-42 effective date of this Act is governed by the law in effect on the
2-43 date the bonds were issued, and that law is continued in effect for
2-44 that purpose.
2-45 (c) This Act does not apply to the use of tax revenue
2-46 pledged or dedicated before the effective date of this Act for the
2-47 acquisition of sites for and the construction, improvement,
2-48 enlarging, equipping, repairing, operation, and maintenance of
2-49 convention center facilities. Tax revenue pledged for these
2-50 purposes before the effective date of this Act is governed by the
2-51 law in effect on the date the revenue was pledged, and that law is
2-52 continued in effect for that purpose.
2-53 (d) This Act does not apply to the use of tax revenue for a
2-54 convention center complex that was under construction on the
2-55 effective date of this Act, including the pledging of such revenue
2-56 to secure bonds, additional bonds, and refunding bonds. Tax
2-57 revenue used for a convention center complex that was under
2-58 construction on the effective date of this Act is governed by the
2-59 law in effect on April 1, 1999, and that law is continued in effect
2-60 for that purpose.
2-61 SECTION 7. The importance of this legislation and the
2-62 crowded condition of the calendars in both houses create an
2-63 emergency and an imperative public necessity that the
2-64 constitutional rule requiring bills to be read on three several
2-65 days in each house be suspended, and this rule is hereby suspended.
2-66 * * * * *