The bill would amend Section 351.1063 of the Tax Code, relating to Municipal Hotel Occupancy Taxes; Allocation of Revenue for Advertising and Promotion: Certain Municipalities with Certain Projects, to add Subsection (c) to state that a municipality described by Section 351.152(46) (a municipality that is the county seat of a county bordering the Gulf of Mexico and the United Mexican States) that uses municipal hotel tax revenue or funds received under Sections 351.156-7 for a qualified project may not reduce the percentage of revenue from municipal hotel tax and allocated for a purpose that is less than the greater of certain specified percentages.
The bill would amend Section 351.152, relating to Applicability to add (46), described above, to the list of municipalities that are entitled to receive certain tax revenue derived from a hotel and convention center project and to pledge certain revenue for the payment of obligations related to the project.
The bill would amend Section 351.153, relating to Exception to the Ownership Requirement, to exempt a municipality described by Section 351.152(46), from the requirement that qualified hotel project must be owned by or located on land owned by the municipality.
The bill would amend Section 351.156, relating to Entitlement to Certain Tax Revenue, to add (b), stating a municipality described by Section 351.152(46) would be entitled to receive 75% of the revenue described by Subsection (a).
The bill would amend Section 351.157(b) to add (13) a municipality described by Section 351.152(46); and add Section 351.157(c) to add (13) (for a municipality described by (b)(13)) to make eligible to receive certain revenues from restaurants, bars, music venues, museums, and retail establishments, swimming pools and swimming facilities owned or operated by the related qualified hotel. Section 351.157(a) would also allow the county or federal government to own the qualified establishment.
The bill would amend Section 351.158, relating to Period of Entitlement, to entitle the municipality to receive the revenue until the twentieth anniversary of the date the qualified hotel to which the entitlement relates is open for initial occupancy.
The bill would amend Chapter 352 of the Tax Code, relating to County Hotel Occupancy Taxes, to add Section 352.1065, regarding the use of revenue for certain counties bordering Mexico and Gulf of Mexico, to allow a county authorized to impose tax by Section 352.002(a)(11) that borders the Gulf of Mexico and the United Mexican States to use all or any portion of county hotel occupancy tax revenue to 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.