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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain municipalities to receive |
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certain tax revenue derived from a hotel and convention center |
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project and to pledge certain tax revenue for the payment of |
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obligations related to the project. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.152, Tax Code, is amended to read as |
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follows: |
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Sec. 351.152. APPLICABILITY. This subchapter applies only |
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to: |
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(1) a municipality described by Section |
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351.001(7)(B); |
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(2) a municipality described by Section |
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351.001(7)(D); |
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(3) a municipality described by Section |
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351.001(7)(E); |
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(4) a municipality described by Section |
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351.102(e)(3); |
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(5) a municipality that contains more than 75 percent |
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of the population of a county with a population of 1.5 million or |
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more; |
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(6) a municipality with a population of 150,000 or |
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more but less than 200,000 that is partially located in at least one |
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county with a population of 125,000 or more; |
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(7) a municipality with a population of 150,000 or |
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more but less than one million that is located in one county with a |
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population of 2.3 million or more; |
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(8) a municipality with a population of 180,000 or |
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more that: |
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(A) is located in two counties, each with a |
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population of 100,000 or more; and |
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(B) contains an American Quarter Horse Hall of |
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Fame and Museum; |
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(9) a municipality with a population of 96,000 or more |
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that is located in a county that borders Lake Palestine; |
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(10) a municipality with a population of 96,000 or |
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more that is located in a county that contains the headwaters of the |
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San Gabriel River; |
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(11) a municipality with a population of 99,900 or |
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more but less than 111,000 that is located in a county with a |
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population of 135,000 or more; |
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(12) a municipality with a population of 110,000 or |
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more but less than 135,000 at least part of which is located in a |
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county with a population of less than 135,000; |
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(13) a municipality with a population of 9,000 or more |
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but less than 10,000 that is located in two counties, each of which |
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has a population of 662,000 or more and a southern border with a |
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county with a population of 2.3 million or more; |
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(14) a municipality with a population of 200,000 or |
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more but less than 300,000 that contains a component institution of |
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the Texas Tech University System; |
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(15) a municipality with a population of 95,000 or |
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more that: |
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(A) is located in more than one county; and |
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(B) borders Lake Lewisville; |
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(16) a municipality with a population of 45,000 or |
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more that: |
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(A) contains a portion of Cedar Hill State Park; |
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(B) is located in two counties, one of which has a |
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population of two million or more and one of which has a population |
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of 149,000 or more; and |
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(C) has adopted a capital improvement plan for |
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the construction or expansion of a convention center facility; |
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(17) a municipality with a population of less than |
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6,000 that: |
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(A) is almost wholly located in a county with a |
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population of 600,000 or more that is adjacent to a county with a |
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population of two million or more; |
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(B) is partially located in a county with a |
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population of 1.8 million or more that is adjacent to a county with |
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a population of two million or more; |
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(C) has a visitor center and museum located in a |
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19th-century rock building in the municipality's downtown; and |
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(D) has a waterpark open to the public; |
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(18) a municipality with a population of 56,000 or |
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more that: |
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(A) borders Lake Ray Hubbard; and |
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(B) is located in two counties, one of which has a |
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population of less than 80,000; |
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(19) a municipality with a population of 83,000 or |
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more that: |
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(A) borders Clear Lake; and |
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(B) is primarily located in a county with a |
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population of less than 300,000; |
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(20) a municipality with a population of less than |
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2,000 that: |
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(A) is located adjacent to a bay connected to the |
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Gulf of Mexico; |
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(B) is located in a county with a population of |
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290,000 or more that is adjacent to a county with a population of |
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four million or more; and |
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(C) has a boardwalk on the bay; |
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(21) a municipality with a population of 75,000 or |
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more that: |
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(A) is located wholly in one county with a |
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population of 575,000 or more that is adjacent to a county with a |
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population of four million or more; and |
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(B) has adopted a capital improvement plan for |
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the construction or expansion of a convention center facility; |
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(22) a municipality with a population of less than |
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75,000 that is located in three counties, at least one of which has |
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a population of four million or more; |
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(23) an eligible coastal municipality with a |
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population of 3,000 or more but less than 5,000; |
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(24) a municipality with a population of 90,000 or |
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more but less than 150,000 that: |
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(A) is located in three counties; and |
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(B) contains a branch campus of a component |
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institution of the University of Houston System; |
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(25) a municipality that is: |
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(A) primarily located in a county with a |
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population of four million or more; and |
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(B) connected by a bridge to a municipality |
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described by Subdivision (20); |
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(26) a municipality with a population of 20,000 or |
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more but less than 25,000 that: |
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(A) contains a portion of Mustang Bayou; and |
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(B) is wholly located in a county with a |
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population of less than 500,000; |
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(27) a municipality with a population of 70,000 or |
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more but less than 90,000 that is located in two counties, one of |
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which has a population of four million or more and the other of |
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which has a population of less than 50,000; |
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(28) a municipality with a population of 10,000 or |
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more that: |
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(A) is wholly located in a county with a |
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population of four million or more; and |
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(B) has a city hall located less than three miles |
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from a space center operated by an agency of the federal government; |
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(29) a municipality that is the county seat of a |
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county: |
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(A) through which the Pedernales River flows; and |
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(B) in which the birthplace of a president of the |
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United States is located; |
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(30) a municipality that contains a portion of U.S. |
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Highway 79 and State Highway 130; |
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(31) a municipality with a population of 48,000 or |
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more but less than 95,000 that is located in two counties, one of |
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which has a population of 900,000 or more but less than 1.7 million; |
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(32) a municipality with a population of less than |
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25,000 that contains a museum of Western American art; |
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(33) a municipality with a population of 50,000 or |
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more that is the county seat of a county that contains a portion of |
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the Sam Houston National Forest; |
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(34) a municipality with a population of less than |
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25,000 that: |
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(A) contains a cultural heritage museum; and |
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(B) is located in a county that borders the |
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United Mexican States and the Gulf of Mexico; |
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(35) a municipality that is the county seat of a county |
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that: |
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(A) has a population of 115,000 or more; |
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(B) is adjacent to a county with a population of |
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1.8 million or more; and |
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(C) hosts an annual peach festival; |
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(36) a municipality that is the county seat of a county |
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that: |
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(A) has a population of 585,000 or more; and |
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(B) is adjacent to a county with a population of |
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four million or more; |
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(37) a municipality with a population of less than |
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10,000 that: |
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(A) contains a component university of The Texas |
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A&M University System; and |
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(B) is located in a county adjacent to a county |
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that borders Oklahoma; |
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(38) a municipality with a population of less than |
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6,100 that: |
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(A) is located in two counties, each of which has |
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a population of 600,000 or more but less than two million; and |
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(B) hosts an annual Cajun Festival; |
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(39) a municipality with a population of 13,000 or |
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more that: |
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(A) is located on an international border; and |
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(B) is located in a county: |
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(i) with a population of less than 400,000; |
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and |
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(ii) in which at least one World Birding |
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Center site is located; |
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(40) a municipality with a population of 4,000 or more |
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that: |
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(A) is located on an international border; and |
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(B) is located not more than five miles from a |
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state historic site that serves as a visitor center for a state park |
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that contains 300,000 or more acres of land; |
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(41) a municipality with a population of 36,000 or |
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more that is adjacent to at least two municipalities described by |
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Subdivision (15); |
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(42) a municipality with a population of 28,000 or |
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more in which is located a historic railroad depot and heritage |
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center; |
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(43) a municipality located in a county that has a |
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population of not more than 300,000 and in which a component |
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university of the University of Houston System is located; |
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(44) a municipality with a population of less than |
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500,000 that is: |
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(A) located in two counties; and |
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(B) adjacent to a municipality described by |
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Subdivision (31); [and] |
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(45) a municipality that: |
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(A) has a population of more than 67,000; and |
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(B) is located in two counties with 90 percent of |
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the municipality's territory located in a county with a population |
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of at least 580,000, and the remaining territory located in a county |
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with a population of at least four million; |
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(46) a municipality that: |
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(A) has a population of 100,000 or more; and |
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(B) is wholly located in, but is not the county |
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seat of, a county with a population of one million or more: |
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(i) in which all or part of a municipality |
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with a population of one million or more is located; and |
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(ii) that is adjacent to a county with a |
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population of 2.5 million or more; and |
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(47) a municipality that is the county seat of a |
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county: |
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(A) with a population of one million or more; |
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(B) in which all or part of a municipality with a |
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population of one million or more is located; and |
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(C) that is located adjacent to a county with a |
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population of 2.5 million or more. |
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SECTION 2. Section 351.153(a), Tax Code, is amended to read |
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as follows: |
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(a) This section applies only to a municipality described by |
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Section 351.152(6), [or] (29), or (47). |
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SECTION 3. Sections 351.157(b) and (c), Tax Code, are |
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amended to read as follows: |
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(b) This section applies only to: |
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(1) a municipality described by Section 351.152(3); |
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(2) a municipality described by Section 351.152(6); |
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(3) a municipality described by Section 351.152(7); |
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(4) a municipality described by Section 351.152(10); |
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(4-a) a municipality described by Section |
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351.152(14); |
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(5) a municipality described by Section 351.152(16); |
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(6) a municipality described by Section 351.152(22); |
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(7) a municipality described by Section 351.152(25); |
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(8) a municipality described by Section 351.152(34); |
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(9) a municipality described by Section 351.152(35); |
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(10) a municipality described by Section 351.152(36); |
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(11) a municipality described by Section 351.152(38); |
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[and] |
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(12) a municipality described by Section 351.152(43); |
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and |
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(13) a municipality described by Section 351.152(46). |
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(c) A municipality is entitled to receive revenue under |
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Subsection (d) derived from the following types of establishments |
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that meet the requirements of Subsections (a)(1), (2), (3), and |
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(4): |
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(1) for a municipality described by Subsection (b)(1): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; |
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(2) for a municipality described by Subsection (b)(2), |
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swimming pools and swimming facilities, restaurants, bars, and |
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retail establishments; |
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(3) for a municipality described by Subsection (b)(3), |
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restaurants, bars, and retail establishments; |
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(4) for a municipality described by Subsection (b)(4): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; |
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(4-a) for a municipality described by Subsection |
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(b)(4-a): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; |
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(5) for a municipality described by Subsection (b)(5), |
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restaurants, bars, and retail establishments; |
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(6) for a municipality described by Subsection (b)(6), |
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restaurants, bars, and retail establishments; |
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(7) for a municipality described by Subsection (b)(7), |
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restaurants, bars, and retail establishments; |
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(8) for a municipality described by Subsection (b)(8), |
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restaurants, bars, and retail establishments; |
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(9) for a municipality described by Subsection (b)(9), |
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restaurants, bars, and retail establishments; |
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(10) for a municipality described by Subsection |
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(b)(10): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; |
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(11) for a municipality described by Subsection |
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(b)(11): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; [and] |
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(12) for a municipality described by Subsection |
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(b)(12): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel; and |
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(13) for a municipality described by Subsection |
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(b)(13): |
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(A) restaurants, bars, and retail |
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establishments; and |
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(B) swimming pools and swimming facilities owned |
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or operated by the related qualified hotel. |
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SECTION 4. Subchapter C, Chapter 351, Tax Code, is amended |
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by adding Section 351.161 to read as follows: |
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Sec. 351.161. RECAPTURE OF LOST STATE TAX REVENUE FROM |
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CERTAIN MUNICIPALITIES. (a) This section applies only to a |
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municipality described by Section 351.152(46) or (47). |
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(b) On the 20th anniversary of the date a hotel designated |
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as a qualified hotel by a municipality to which this section applies |
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is open for initial occupancy, the comptroller shall determine: |
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(1) the total amount of state tax revenue received |
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under Section 351.156 and, if applicable, under Section 351.157 by |
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the municipality from the qualified project of which the qualified |
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hotel was a part during the period for which the municipality was |
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entitled to receive that revenue; and |
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(2) the total amount of state tax revenue described by |
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Subdivision (1) received by the state during the period beginning |
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on the 10th anniversary of the date the qualified hotel opened for |
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initial occupancy and ending on the 20th anniversary of that date |
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from the same sources from which the municipality received the |
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revenue described by Subdivision (1). |
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(c) If the amount determined under Subsection (b)(1) |
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exceeds the amount determined under Subsection (b)(2), the |
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comptroller shall promptly provide written notice to the |
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municipality stating that the municipality must remit to the |
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comptroller the difference between those two amounts in the manner |
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provided by this subsection. The municipality shall, using money |
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lawfully available to the municipality for the purpose, remit |
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monthly payments to the comptroller in an amount equal to the total |
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amount of municipal hotel occupancy tax revenue received by the |
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municipality from the qualified hotel in the preceding month until |
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the amount remitted to the comptroller equals the total amount due |
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as stated in the notice. The first payment required under this |
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subsection must be made not later than the 30th day after the date |
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the municipality receives the notice from the comptroller. |
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Subsequent payments are due on the 20th day of each month until the |
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total amount stated in the notice is paid. The comptroller shall |
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prescribe the procedure a municipality must use to remit a payment |
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required by this subsection to the comptroller. |
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(d) The comptroller shall deposit revenue received under |
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this section in the manner prescribed by Section 156.251. |
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SECTION 5. This Act takes effect September 1, 2023. |