BILL ANALYSIS

H.B. 3066

By: Leach

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that the Qualified Hotel Project program was created as a public-private financial tool to assist Texas municipalities with the financing of headquarter hotel facilities designed to support convention centers and that subsequent laws have authorized certain municipalities in Texas to receive a rebate of the state hotel occupancy and state sales taxes collected at a qualified hotel located near a convention center for a ten-year period after the hotel project opens for initial occupancy. H.B. 3066 seeks to support the City of Allen's economic development efforts by extending the period of that entitlement from 10 to 20 years.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3066 amends the Tax Code to extend the period during which a municipality that has a population of 100,000 or more and is wholly located in, but is not the county seat of, a county with a population of one million or more in which all or part of a municipality with a population of one million or more is located and that is adjacent to a county with a population of 2.5 million or more is entitled to receive certain tax revenue associated with a qualified hotel or convention center project and certain additional tax revenue derived from related qualified establishments from a period that ends on the 10th anniversary of the date the qualified hotel to which the entitlement relates is open for initial occupancy to a period that ends on the 20th anniversary of that date.

H.B. 3066 postpones the date on which the comptroller of public accounts must determine the total amount of state tax revenue such a municipality received from those entitlements to certain revenue associated with a qualified project and, if applicable, from certain related qualified establishments from the 20th anniversary of the date a hotel designated as a qualified hotel by the municipality as part of the qualified project is open for initial occupancy to the 40th anniversary of that date. The bill also postpones, from the 20th anniversary of the date that hotel opens for initial occupancy to the 40th anniversary of that date, the date on which the comptroller must determine the total amount of such state tax revenue received by the state during a certain period from the same sources from which the municipality received the revenue and changes that period from a period beginning on the 10th anniversary of the date the hotel opens for initial occupancy and ending on the 20th anniversary of that date to a period beginning on the 20th anniversary of the date the hotel opened for initial occupancy and ending on the 40th anniversary of that date.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.