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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of hotel occupancy tax revenue by certain |
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municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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by adding Section 351.1062 to read as follows: |
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Sec. 351.1062. ALLOCATION OF REVENUE: CERTAIN |
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MUNICIPALITIES WITH CITY PARKS. (a) This section applies only to a |
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municipality that: |
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(1) has a population of more than 7,500 but less than |
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12,000; |
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(2) has at least one hotel within 350 feet of a city |
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park; and |
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(3) is wholly located in a county with a population of |
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more than 1.8 million but less than 2.3 million. |
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(b) Notwithstanding any other provision of this chapter and |
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subject to Subsections (c) and (d), a municipality to which this |
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section applies may use revenue from the tax imposed under this |
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chapter to promote tourism and the convention and hotel industry by |
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constructing a sports facility and amphitheater. |
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(c) A municipality that uses revenue derived from the tax |
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imposed under this chapter for the purpose described by Subsection |
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(b): |
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(1) shall make a good-faith estimate of the amount of |
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area hotel revenue that will be generated by events and activities |
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held at the sports facility and amphitheater during the five-year |
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period following the date on which construction is completed; and |
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(2) may not spend hotel occupancy tax revenue for the |
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construction of the sports facility and amphitheater in a total |
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amount that exceeds the amount of area hotel revenue estimated |
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under Subdivision (1). |
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(d) At the end of the five-year period described by |
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Subsection (c)(1), a municipality shall reimburse from the |
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municipality's general fund to the municipality's hotel occupancy |
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tax revenue fund any municipal hotel occupancy tax revenue spent on |
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the construction of the sports facility and amphitheater in excess |
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of the amount of area hotel revenue attributable to the sports |
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facility and amphitheater during that period. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |