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A BILL TO BE ENTITLED
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AN ACT
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relating to the entitlement of certain municipalities to certain |
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tax revenue associated with hotel and convention center projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.158, Tax Code, is amended to read as |
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follows: |
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Sec. 351.158. PERIOD OF ENTITLEMENT. (a) Except as |
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provided by Subsection (b), a [A] municipality is entitled to |
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receive revenue as provided by Sections 351.156 and 351.157 until |
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the 10th anniversary of the date the qualified hotel to which the |
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entitlement relates is open for initial occupancy. |
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(b) A municipality described by Section 351.152(46) is |
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entitled to receive revenue as provided by Sections 351.156 and |
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351.157 until the 20th anniversary of the date the qualified hotel |
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to which the entitlement relates is open for initial occupancy. |
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SECTION 2. Section 351.162, Tax Code, is amended by |
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amending Subsections (b) and (c) and adding Subsection (b-1) to |
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read as follows: |
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(b) Except as provided by Subsection (b-1), on [On] the 20th |
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anniversary of the date a hotel designated as a qualified hotel by a |
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municipality as part of a qualified project to which this section |
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applies is open for initial occupancy, the comptroller shall |
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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 during the period for |
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which the municipality was 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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(b-1) On the 40th anniversary of the date a hotel designated |
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as a qualified hotel by a municipality described by Section |
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351.152(46) as part of a qualified project to which this section |
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applies is open for initial occupancy, the comptroller shall |
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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 during the period for |
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which the municipality was 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 20th anniversary of the date the qualified hotel opened for |
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initial occupancy and ending on the 40th 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) or |
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(b-1)(1), as applicable, exceeds the amount determined under |
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Subsection (b)(2) or (b-1)(2), as applicable, the comptroller shall |
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promptly provide written notice to the municipality stating that |
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the municipality must remit to the comptroller the difference |
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between those two amounts in the manner provided by this |
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subsection. The municipality shall, using money lawfully available |
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to the municipality for the purpose, remit monthly payments to the |
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comptroller in an amount equal to the total amount of municipal |
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hotel occupancy tax revenue received by the municipality from the |
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qualified hotel in the preceding month until the amount remitted to |
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the comptroller equals the total amount due as stated in the notice. |
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The first payment required under this subsection must be made not |
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later than the 30th day after the date the municipality receives the |
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notice from the comptroller. Subsequent payments are due on the |
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20th day of each month until the total amount stated in the notice |
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is paid. The comptroller shall prescribe the procedure a |
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municipality must use to remit a payment required by this |
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subsection to the comptroller. |
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SECTION 3. 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, 2025. |