| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the use of hotel occupancy tax revenue by certain |
|
|
municipalities and counties and the authority of certain |
|
|
municipalities to receive certain tax revenue derived from a hotel |
|
|
and convention center project and to pledge certain tax revenue for |
|
|
the payment of obligations related to the project. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. This Act may be cited as the Lucio-Kristofferson |
|
|
Act. |
|
|
SECTION 2. Section 351.1063, Tax Code, is amended by adding |
|
|
Subsection (c) to read as follows: |
|
|
(c) Notwithstanding Subsection (b), a municipality |
|
|
described by Section 351.152(46) that uses revenue derived from the |
|
|
tax imposed under this chapter or funds received under Section |
|
|
351.156 or 351.157 for a qualified project under Section 351.155 |
|
|
may not reduce the percentage of revenue from the tax imposed under |
|
|
this chapter and allocated for a purpose described by Section |
|
|
351.101(a)(3) to a percentage that is less than the greater of: |
|
|
(1) the average percentage of that revenue allocated |
|
|
by the municipality for that purpose during the 36-month period |
|
|
preceding the date the municipality begins using the revenue or |
|
|
funds for the project; or |
|
|
(2) 10 percent. |
|
|
SECTION 3. Section 351.152, Tax Code, is amended to read as |
|
|
follows: |
|
|
Sec. 351.152. APPLICABILITY. This subchapter applies only |
|
|
to: |
|
|
(1) a municipality described by Section |
|
|
351.001(7)(B); |
|
|
(2) a municipality described by Section |
|
|
351.001(7)(D); |
|
|
(3) a municipality described by Section |
|
|
351.001(7)(E); |
|
|
(4) a municipality described by Section |
|
|
351.102(e)(3); |
|
|
(5) a municipality that contains more than 75 percent |
|
|
of the population of a county with a population of 1.5 million or |
|
|
more; |
|
|
(6) a municipality with a population of 150,000 or |
|
|
more but less than 200,000 that is partially located in at least one |
|
|
county with a population of 125,000 or more; |
|
|
(7) a municipality with a population of 150,000 or |
|
|
more but less than one million that is located in one county with a |
|
|
population of 2.3 million or more; |
|
|
(8) a municipality with a population of 180,000 or |
|
|
more that: |
|
|
(A) is located in two counties, each with a |
|
|
population of 100,000 or more; and |
|
|
(B) contains an American Quarter Horse Hall of |
|
|
Fame and Museum; |
|
|
(9) a municipality with a population of 96,000 or more |
|
|
that is located in a county that borders Lake Palestine; |
|
|
(10) a municipality with a population of 96,000 or |
|
|
more that is located in a county that contains the headwaters of the |
|
|
San Gabriel River; |
|
|
(11) a municipality with a population of 99,900 or |
|
|
more but less than 111,000 that is located in a county with a |
|
|
population of 135,000 or more; |
|
|
(12) a municipality with a population of 110,000 or |
|
|
more but less than 135,000 at least part of which is located in a |
|
|
county with a population of less than 135,000; |
|
|
(13) a municipality with a population of 9,000 or more |
|
|
but less than 10,000 that is located in two counties, each of which |
|
|
has a population of 662,000 or more and a southern border with a |
|
|
county with a population of 2.3 million or more; |
|
|
(14) a municipality with a population of 200,000 or |
|
|
more but less than 300,000 that contains a component institution of |
|
|
the Texas Tech University System; |
|
|
(15) a municipality with a population of 95,000 or |
|
|
more that: |
|
|
(A) is located in more than one county; and |
|
|
(B) borders Lake Lewisville; |
|
|
(16) a municipality with a population of 45,000 or |
|
|
more that: |
|
|
(A) contains a portion of Cedar Hill State Park; |
|
|
(B) is located in two counties, one of which has a |
|
|
population of two million or more and one of which has a population |
|
|
of 149,000 or more; and |
|
|
(C) has adopted a capital improvement plan for |
|
|
the construction or expansion of a convention center facility; |
|
|
(17) a municipality with a population of less than |
|
|
6,000 that: |
|
|
(A) is almost wholly located in a county with a |
|
|
population of 600,000 or more that is adjacent to a county with a |
|
|
population of two million or more; |
|
|
(B) is partially located in a county with a |
|
|
population of 1.8 million or more that is adjacent to a county with |
|
|
a population of two million or more; |
|
|
(C) has a visitor center and museum located in a |
|
|
19th-century rock building in the municipality's downtown; and |
|
|
(D) has a waterpark open to the public; |
|
|
(18) a municipality with a population of 56,000 or |
|
|
more that: |
|
|
(A) borders Lake Ray Hubbard; and |
|
|
(B) is located in two counties, one of which has a |
|
|
population of less than 80,000; |
|
|
(19) a municipality with a population of 83,000 or |
|
|
more that: |
|
|
(A) borders Clear Lake; and |
|
|
(B) is primarily located in a county with a |
|
|
population of less than 300,000; |
|
|
(20) a municipality with a population of less than |
|
|
2,000 that: |
|
|
(A) is located adjacent to a bay connected to the |
|
|
Gulf of Mexico; |
|
|
(B) is located in a county with a population of |
|
|
290,000 or more that is adjacent to a county with a population of |
|
|
four million or more; and |
|
|
(C) has a boardwalk on the bay; |
|
|
(21) a municipality with a population of 75,000 or |
|
|
more that: |
|
|
(A) is located wholly in one county with a |
|
|
population of 575,000 or more that is adjacent to a county with a |
|
|
population of four million or more; and |
|
|
(B) has adopted a capital improvement plan for |
|
|
the construction or expansion of a convention center facility; |
|
|
(22) a municipality with a population of less than |
|
|
75,000 that is located in three counties, at least one of which has |
|
|
a population of four million or more; |
|
|
(23) an eligible coastal municipality with a |
|
|
population of 3,000 or more but less than 5,000; |
|
|
(24) a municipality with a population of 90,000 or |
|
|
more but less than 150,000 that: |
|
|
(A) is located in three counties; and |
|
|
(B) contains a branch campus of a component |
|
|
institution of the University of Houston System; |
|
|
(25) a municipality that is: |
|
|
(A) primarily located in a county with a |
|
|
population of four million or more; and |
|
|
(B) connected by a bridge to a municipality |
|
|
described by Subdivision (20); |
|
|
(26) a municipality with a population of 20,000 or |
|
|
more but less than 25,000 that: |
|
|
(A) contains a portion of Mustang Bayou; and |
|
|
(B) is wholly located in a county with a |
|
|
population of less than 500,000; |
|
|
(27) a municipality with a population of 70,000 or |
|
|
more but less than 90,000 that is located in two counties, one of |
|
|
which has a population of four million or more and the other of |
|
|
which has a population of less than 50,000; |
|
|
(28) a municipality with a population of 10,000 or |
|
|
more that: |
|
|
(A) is wholly located in a county with a |
|
|
population of four million or more; and |
|
|
(B) has a city hall located less than three miles |
|
|
from a space center operated by an agency of the federal government; |
|
|
(29) a municipality that is the county seat of a |
|
|
county: |
|
|
(A) through which the Pedernales River flows; and |
|
|
(B) in which the birthplace of a president of the |
|
|
United States is located; |
|
|
(30) a municipality that contains a portion of U.S. |
|
|
Highway 79 and State Highway 130; |
|
|
(31) a municipality with a population of 48,000 or |
|
|
more but less than 95,000 that is located in two counties, one of |
|
|
which has a population of 900,000 or more but less than 1.7 million; |
|
|
(32) a municipality with a population of less than |
|
|
25,000 that contains a museum of Western American art; |
|
|
(33) a municipality with a population of 50,000 or |
|
|
more that is the county seat of a county that contains a portion of |
|
|
the Sam Houston National Forest; |
|
|
(34) a municipality with a population of less than |
|
|
25,000 that: |
|
|
(A) contains a cultural heritage museum; and |
|
|
(B) is located in a county that borders the |
|
|
United Mexican States and the Gulf of Mexico; |
|
|
(35) a municipality that is the county seat of a county |
|
|
that: |
|
|
(A) has a population of 115,000 or more; |
|
|
(B) is adjacent to a county with a population of |
|
|
1.8 million or more; and |
|
|
(C) hosts an annual peach festival; |
|
|
(36) a municipality that is the county seat of a county |
|
|
that: |
|
|
(A) has a population of 585,000 or more; and |
|
|
(B) is adjacent to a county with a population of |
|
|
four million or more; |
|
|
(37) a municipality with a population of less than |
|
|
10,000 that: |
|
|
(A) contains a component university of The Texas |
|
|
A&M University System; and |
|
|
(B) is located in a county adjacent to a county |
|
|
that borders Oklahoma; |
|
|
(38) a municipality with a population of less than |
|
|
6,100 that: |
|
|
(A) is located in two counties, each of which has |
|
|
a population of 600,000 or more but less than two million; and |
|
|
(B) hosts an annual Cajun Festival; |
|
|
(39) a municipality with a population of 13,000 or |
|
|
more that: |
|
|
(A) is located on an international border; and |
|
|
(B) is located in a county: |
|
|
(i) with a population of less than 400,000; |
|
|
and |
|
|
(ii) in which at least one World Birding |
|
|
Center site is located; |
|
|
(40) a municipality with a population of 4,000 or more |
|
|
that: |
|
|
(A) is located on an international border; and |
|
|
(B) is located not more than five miles from a |
|
|
state historic site that serves as a visitor center for a state park |
|
|
that contains 300,000 or more acres of land; |
|
|
(41) a municipality with a population of 36,000 or |
|
|
more that is adjacent to at least two municipalities described by |
|
|
Subdivision (15); |
|
|
(42) a municipality with a population of 28,000 or |
|
|
more in which is located a historic railroad depot and heritage |
|
|
center; |
|
|
(43) a municipality located in a county that has a |
|
|
population of not more than 300,000 and in which a component |
|
|
university of the University of Houston System is located; |
|
|
(44) a municipality with a population of less than |
|
|
500,000 that is: |
|
|
(A) located in two counties; and |
|
|
(B) adjacent to a municipality described by |
|
|
Subdivision (31); [and] |
|
|
(45) a municipality that: |
|
|
(A) has a population of more than 67,000; and |
|
|
(B) is located in two counties with 90 percent of |
|
|
the municipality's territory located in a county with a population |
|
|
of at least 580,000, and the remaining territory located in a county |
|
|
with a population of at least four million; and |
|
|
(46) a municipality that is the county seat of a county |
|
|
bordering the Gulf of Mexico and the United Mexican States. |
|
|
SECTION 4. Section 351.153(a), Tax Code, is amended to read |
|
|
as follows: |
|
|
(a) This section applies only to a municipality described by |
|
|
Section 351.152(6), [or] (29), or (46). |
|
|
SECTION 5. Section 351.156, Tax Code, is amended to read as |
|
|
follows: |
|
|
Sec. 351.156. ENTITLEMENT TO CERTAIN TAX REVENUE. (a) |
|
|
Subject to Sections 351.155(e) and 351.158 and Subsection (b) of |
|
|
this section, a municipality is entitled to receive the revenue |
|
|
derived from the following taxes generated, paid, and collected by |
|
|
a qualified hotel, and each restaurant, bar, and retail |
|
|
establishment located in or connected to the hotel or the related |
|
|
qualified convention center facility, that is located in the |
|
|
municipality: |
|
|
(1) the sales and use tax imposed under Chapter 151; |
|
|
(2) the hotel occupancy tax imposed under Chapter 156; |
|
|
and |
|
|
(3) if a political subdivision that is entitled to |
|
|
receive the revenue from the tax agrees in writing to the |
|
|
municipality receiving that revenue: |
|
|
(A) the sales and use tax imposed by the |
|
|
political subdivision under Chapter 322 or 323; |
|
|
(B) the hotel occupancy tax imposed by the |
|
|
political subdivision under Chapter 352; and |
|
|
(C) the mixed beverage tax issued under Section |
|
|
183.051. |
|
|
(b) A municipality described by Section 351.152(46) is |
|
|
entitled to receive 75 percent of the revenue described by |
|
|
Subsection (a). |
|
|
SECTION 6. Section 351.157, Tax Code, is amended by |
|
|
amending Subsections (a), (b), (c), and (d) and adding Subsection |
|
|
(d-1) to read as follows: |
|
|
(a) In this section, "qualified establishment" means an |
|
|
establishment: |
|
|
(1) that is located on land: |
|
|
(A) owned by a municipality; [or] |
|
|
(B) owned by any person if the establishment is |
|
|
located in a municipality described by Section 351.152(3); |
|
|
(C) [or] owned by the federal government if the |
|
|
establishment is located in a municipality described by Section |
|
|
351.152(6); or |
|
|
(D) owned by a county or by the federal |
|
|
government if the establishment is located in a municipality |
|
|
described by Section 351.152(46); |
|
|
(2) the nearest exterior wall of which is located not |
|
|
more than 1,000 feet from the nearest exterior wall of a qualified |
|
|
hotel or qualified convention center facility; |
|
|
(3) that is constructed: |
|
|
(A) on or after the date the municipality |
|
|
commences a qualified project under this subchapter; or |
|
|
(B) at any time if the establishment is located |
|
|
in a municipality described by Section 351.152(3); |
|
|
(4) that is not a sports stadium; and |
|
|
(5) that is the type of establishment described by |
|
|
Subsection (c) from which the municipality is entitled to receive |
|
|
revenue under Subsection (d). |
|
|
(b) This section applies only to: |
|
|
(1) a municipality described by Section 351.152(3); |
|
|
(2) a municipality described by Section 351.152(6); |
|
|
(3) a municipality described by Section 351.152(7); |
|
|
(4) a municipality described by Section 351.152(10); |
|
|
(4-a) a municipality described by Section |
|
|
351.152(14); |
|
|
(5) a municipality described by Section 351.152(16); |
|
|
(6) a municipality described by Section 351.152(22); |
|
|
(7) a municipality described by Section 351.152(25); |
|
|
(8) a municipality described by Section 351.152(34); |
|
|
(9) a municipality described by Section 351.152(35); |
|
|
(10) a municipality described by Section 351.152(36); |
|
|
(11) a municipality described by Section 351.152(38); |
|
|
[and] |
|
|
(12) a municipality described by Section 351.152(43); |
|
|
and |
|
|
(13) a municipality described by Section 351.152(46). |
|
|
(c) A municipality is entitled to receive revenue under |
|
|
Subsection (d) derived from the following types of establishments |
|
|
that meet the requirements of Subsections (a)(1), (2), (3), and |
|
|
(4): |
|
|
(1) for a municipality described by Subsection (b)(1): |
|
|
(A) restaurants, bars, and retail |
|
|
establishments; and |
|
|
(B) swimming pools and swimming facilities owned |
|
|
or operated by the related qualified hotel; |
|
|
(2) for a municipality described by Subsection (b)(2), |
|
|
swimming pools and swimming facilities, restaurants, bars, and |
|
|
retail establishments; |
|
|
(3) for a municipality described by Subsection (b)(3), |
|
|
restaurants, bars, and retail establishments; |
|
|
(4) for a municipality described by Subsection (b)(4): |
|
|
(A) restaurants, bars, and retail |
|
|
establishments; and |
|
|
(B) swimming pools and swimming facilities owned |
|
|
or operated by the related qualified hotel; |
|
|
(4-a) for a municipality described by Subsection |
|
|
(b)(4-a): |
|
|
(A) restaurants, bars, and retail |
|
|
establishments; and |
|
|
(B) swimming pools and swimming facilities owned |
|
|
or operated by the related qualified hotel; |
|
|
(5) for a municipality described by Subsection (b)(5), |
|
|
restaurants, bars, and retail establishments; |
|
|
(6) for a municipality described by Subsection (b)(6), |
|
|
restaurants, bars, and retail establishments; |
|
|
(7) for a municipality described by Subsection (b)(7), |
|
|
restaurants, bars, and retail establishments; |
|
|
(8) for a municipality described by Subsection (b)(8), |
|
|
restaurants, bars, and retail establishments; |
|
|
(9) for a municipality described by Subsection (b)(9), |
|
|
restaurants, bars, and retail establishments; |
|
|
(10) for a municipality described by Subsection |
|
|
(b)(10): |
|
|
(A) restaurants, bars, and retail |
|
|
establishments; and |
|
|
(B) swimming pools and swimming facilities owned |
|
|
or operated by the related qualified hotel; |
|
|
(11) for a municipality described by Subsection |
|
|
(b)(11): |
|
|
(A) restaurants, bars, and retail |
|
|
establishments; and |
|
|
(B) swimming pools and swimming facilities owned |
|
|
or operated by the related qualified hotel; [and] |
|
|
(12) for a municipality described by Subsection |
|
|
(b)(12): |
|
|
(A) restaurants, bars, and retail |
|
|
establishments; and |
|
|
(B) swimming pools and swimming facilities owned |
|
|
or operated by the related qualified hotel; and |
|
|
(13) for a municipality described by Subsection |
|
|
(b)(13): |
|
|
(A) restaurants, bars, music venues, museums, |
|
|
and retail establishments; and |
|
|
(B) swimming pools and swimming facilities owned |
|
|
or operated by the related qualified hotel. |
|
|
(d) Subject to Subsections (d-1) and [Subsection] (e), in |
|
|
addition to the revenue to which the municipality is entitled under |
|
|
Section 351.156, a municipality to which this section applies is |
|
|
entitled to receive the revenue derived from the following taxes |
|
|
generated, paid, and collected from a qualified establishment |
|
|
located in the municipality: |
|
|
(1) the sales and use tax imposed under Chapter 151; |
|
|
and |
|
|
(2) the mixed beverage tax issued under Section |
|
|
183.051, if the political subdivision that is entitled to receive |
|
|
the revenue from the tax agrees in writing to the municipality |
|
|
receiving that revenue. |
|
|
(d-1) A municipality described by Subsection (b)(13) is |
|
|
entitled to receive 75 percent of the additional revenue described |
|
|
by Subsection (d). |
|
|
SECTION 7. Section 351.158, Tax Code, is amended to read as |
|
|
follows: |
|
|
Sec. 351.158. PERIOD OF ENTITLEMENT. (a) A municipality is |
|
|
entitled to receive revenue as provided by Sections 351.156 and |
|
|
351.157 until the 10th anniversary of the date the qualified hotel |
|
|
to which the entitlement relates is open for initial occupancy. |
|
|
(b) Notwithstanding Subsection (a), a municipality |
|
|
described by Section 351.152(46) is entitled to receive revenue as |
|
|
provided by Sections 351.156 and 351.157 until the 20th anniversary |
|
|
of the date the qualified hotel to which the entitlement relates is |
|
|
open for initial occupancy. |
|
|
SECTION 8. Subchapter B, Chapter 352, Tax Code, is amended |
|
|
by adding Section 352.1065 to read as follows: |
|
|
Sec. 352.1065. USE OF REVENUE: CERTAIN COUNTIES BORDERING |
|
|
MEXICO AND GULF OF MEXICO. (a) This section applies only to a |
|
|
county that: |
|
|
(1) is authorized by Section 352.002(a)(11) to impose |
|
|
a tax under this chapter; and |
|
|
(2) borders the Gulf of Mexico and the United Mexican |
|
|
States. |
|
|
(b) In addition to the purposes authorized by this chapter |
|
|
and for the public purpose of encouraging the economic development |
|
|
of this state, a county to which this section applies may enter into |
|
|
an agreement with a municipality that is the county seat of the |
|
|
county to pledge not more than 75 percent of the revenue derived |
|
|
from the tax imposed by the county under this chapter and collected |
|
|
by hotels located in the municipality for the payment of bonds or |
|
|
other obligations, including contractual obligations, for which |
|
|
the municipality has pledged or committed revenue under Section |
|
|
351.155. |
|
|
(c) A county that uses revenue in the manner described by |
|
|
Subsection (b) must use at least 10 percent of the revenue derived |
|
|
from the tax authorized under this chapter for the purposes stated |
|
|
in Section 351.101(a)(3). |
|
|
SECTION 9. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2023. |