Bill Text: TX HB4347 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects and other qualified projects.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB4347 Detail]
Download: Texas-2019-HB4347-Introduced.html
Bill Title: Relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects and other qualified projects.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB4347 Detail]
Download: Texas-2019-HB4347-Introduced.html
By: Anchia | H.B. No. 4347 |
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relating to the use of certain tax revenue by certain | ||
municipalities for the payment of job training programs and the | ||
development of hotel and convention center projects. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle A, Title 10, Local Government Code, is | ||
amended by adding Chapter 310 to read as follows: | ||
SECTION 1. CHAPTER 310. QUALIFIED MUNICIPAL HOTEL AND | ||
CONVENTION CENTER PROJECTS | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 310.001. DEFINITIONS. In this chapter: | ||
(1) "Qualified convention center facility" means a | ||
convention center facility as defined by Section 351.001, Tax Code, | ||
that: | ||
(A) is owned by a municipality, | ||
(B) has been constructed or will be constructed | ||
in conjunction with the acquisition, lease, construction, repair, | ||
remodel or equipping of a hotel that is part of a qualified hotel | ||
project, and | ||
(C) contains at least 4,000 square feet of | ||
meeting space. | ||
(2) "Eligible central municipality" and "eligible | ||
coastal municipality" have the meanings assigned by Section | ||
351.001, Tax Code. | ||
(3) "Hotel" has the meaning assigned by Section | ||
156.001, Tax Code. | ||
(4) "Qualified hotel project" means a project to | ||
acquire, lease, construct, repair, remodel, expand or equip: | ||
(A) a hotel connected to a qualified convention | ||
center facility or not more than 1,000 feet as measured from the | ||
closest exterior wall of a qualified convention center facility and | ||
a hotel; and | ||
(B) subject to the limitation of Section 310.103, | ||
a facility or business located on the same tract of land as a | ||
qualified convention center facility that is included in a plan for | ||
the development of a qualified hotel project submitted to a | ||
municipality but located no more than 1,500 feet from the closest | ||
exterior wall of a qualified convention center facility or hotel | ||
regardless of who owns the facility, the business or the real | ||
property. | ||
(5) "Qualified municipality" means a municipality | ||
described by Subchapter D. | ||
(6) "Revenue" has the meaning assigned by Section | ||
351.001, Tax Code. | ||
Sec. 310.002. NONPROFIT CORPORATION AS MUNICIPAL AGENT. A | ||
qualified municipality may authorize a nonprofit corporation to act | ||
on behalf of the municipality for any purpose under this chapter. | ||
Sec. 310.004. RULES. The comptroller may adopt rules as | ||
necessary to administer this chapter. | ||
SUBCHAPTER B. AUTHORITY TO ISSUE BONDS AND PLEDGE CERTAIN TAX | ||
REVENUE FOR OBLIGATIONS | ||
Sec. 310.051. AUTHORITY TO ISSUE BONDS AND PLEDGE OF | ||
CERTAIN TAX REVENUE FOR OBLIGATIONS FOR QUALIFIED HOTEL PROJECTS | ||
AND CONVENTION CENTER FACILITY. | ||
(a) Notwithstanding Chapters 1504 or 1508, Government Code, | ||
a qualified municipality may issue bonds or other obligations and | ||
may pledge the revenue derived from the tax imposed under Chapter | ||
351, Tax Code, from a qualified hotel project and the revenue to | ||
which the qualified municipality is entitled under Section 310.101 | ||
for: | ||
(1) the cost of workforce training, job creation and | ||
job-training programs associated with employees at a qualified | ||
hotel project; | ||
(2) advertising and conducting solicitations and | ||
promotional programs to attract tourists and convention delegates | ||
or registrants to the municipality; and | ||
(3) the payment of bonds or other obligations issued | ||
or incurred to acquire, lease, construct, repair, remodel, or | ||
equip: | ||
(A) the hotel that is part of the qualified hotel | ||
project; | ||
(B) a facility or business described by Section | ||
310.001(4)(B); | ||
(C) a qualified convention center facility | ||
described by Section 310.001(1)(B) that will be located not more | ||
than the distance specified by Section 310.001(4)(A) from the hotel | ||
that is part of the qualified hotel project; | ||
(D) land where a qualified hotel project will be | ||
located; | ||
(E) parking facilities that support the | ||
qualified hotel project or qualified convention center; or | ||
(F) infrastructure including water, sewer, | ||
streets, sidewalks, walkways, trails, plazas that support the hotel | ||
project. | ||
(c) A qualified municipality may pledge revenue from or | ||
other assets of a qualified hotel project for the payment of bonds | ||
or other obligations issued or incurred only if the qualified hotel | ||
project benefits from those bonds or other obligations. | ||
Sec. 310.056. SUBMISSION OF INFORMATION. (a) The | ||
comptroller by rule may establish the information a qualified | ||
municipality must submit in a request made under this section. | ||
(b) The comptroller may require a municipality to submit | ||
information prepared by a registered professional land surveyor to | ||
satisfy the distance specified by this Chapter. | ||
SUBCHAPTER C. RECEIPT AND USE OF CERTAIN TAX REVENUE | ||
Sec. 310.101. ENTITLEMENT TO CERTAIN TAX REVENUE. (a) | ||
Except as otherwise provided by this chapter, this section applies | ||
only to a qualified municipality described by Subchapter D. | ||
(b) Subject to the limitation in Sections 310.102, 310.103, | ||
and 310.104, a qualified municipality is entitled to receive the | ||
revenue derived from the following taxes generated, paid, and | ||
collected by a qualified hotel project including each facility or | ||
business located in a qualified hotel project located in a | ||
qualified municipality: | ||
(1) the sales and use tax imposed under Chapter 151, | ||
Tax Code but not including sales if the customer did not take | ||
possession or consume the good; | ||
(2) the hotel occupancy tax imposed under Chapter 156, | ||
Tax Code; and | ||
(3) if a political subdivision that is entitled to | ||
receive the revenue from the tax agrees in writing to pay the | ||
revenue to the municipality: | ||
(A) the sales and use tax imposed by the | ||
political subdivision under Chapter 322 or 323, Tax Code; | ||
(B) the hotel occupancy tax imposed by the | ||
political subdivision under Chapter 352, Tax Code; | ||
(C) the municipal portion of the mixed beverage | ||
tax imposed under Chapter 183, Tax Code; and | ||
(D) the ad valorem tax imposed by the political | ||
subdivision under Title 1, Tax Code. | ||
Sec. 310.102. PERIOD OF ENTITLEMENT. A qualified | ||
municipality is entitled to receive revenue under this subchapter | ||
from a qualified hotel project until the 10th anniversary of the | ||
date the hotel that is part of the qualified hotel project is open | ||
for initial occupancy. | ||
Sec. 310.103. NEW COMMERICAL DEVELOPMENT IN A QUALIFIED | ||
HOTEL PROJECT (a) If the construction of a facility or business | ||
located in a qualified hotel project occurs: | ||
(1) no earlier than twenty-four months before the date | ||
a qualified hotel project is open for initial occupancy; or | ||
(2) before the 10th anniversary of the date the hotel | ||
opens for initial occupancy, a qualified municipality is entitled | ||
to receive: | ||
(A) twenty percent of the sales and use tax | ||
imposed under Chapter 151, Tax Code and one hundred percent of the | ||
municipal portion of the mixed beverage tax imposed under Chapter | ||
183, Tax Code generated, paid, and collected by each facility or | ||
business in a qualified hotel project located in the qualified | ||
municipality in the first and second year in which the qualified | ||
hotel is open for initial occupancy; and | ||
(B) eighty percent of the sales and use tax | ||
imposed under Chapter 151, Tax Code and one hundred percent of the | ||
municipal portion of the mixed beverage tax imposed under Chapter | ||
183, Tax Code generated, paid, and collected by each facility or | ||
business in a qualified hotel project located in the qualified | ||
municipality during the third through tenth years the qualified | ||
hotel is open for initial occupancy. | ||
Sec 310.104. EXISTING COMMERICAL DEVELOPMENT IN A QUALIFIED | ||
HOTEL. (a) If a facility or business located in qualified hotel | ||
project was constructed more than twenty-four months before the | ||
date the qualified hotel opens for initial occupancy, a qualified | ||
municipality is not entitled to receive revenue under this | ||
subchapter for the taxes generated by that facility or business. | ||
Sec. 310.105. LIMITATION ON ENTITLEMENT; USE OF REVENUE. A | ||
qualified municipality may use the revenue received under this | ||
subchapter for the payment of bonds or other obligations issued or | ||
incurred for a qualified hotel project, except that the qualified | ||
municipality is only entitled to receive the revenue if the | ||
qualified municipality pledges a portion of the revenue derived | ||
from the tax imposed under Chapter 351, Tax Code, from the hotel | ||
that is part of the qualified hotel project for the payment of bonds | ||
or other obligations issued or incurred for the qualified hotel | ||
project. | ||
Sec. 310.106. DEPOSIT OF REVENUE. Notwithstanding any | ||
other law, the comptroller shall deposit the revenue from the taxes | ||
described by Section 310.101(b) that were collected by or forwarded | ||
to the comptroller in trust in a separate suspense account of the | ||
qualified hotel project. The suspense account is outside the state | ||
treasury and the comptroller may make a payment authorized by this | ||
subchapter without the necessity of an appropriation. | ||
Sec. 310.107. APPLICATION FOR PAYMENT. The comptroller by | ||
rule shall establish the requirements and procedures by which a | ||
qualified municipality may apply for a payment authorized by this | ||
subchapter. | ||
Sec. 310.108. QUARTERLY PAYMENTS. The comptroller shall | ||
pay to each qualified municipality the revenue to which the | ||
municipality is entitled under this subchapter at least quarterly. | ||
Sec. 310.109. PLEDGE OF CERTAIN TAX REVENUE BY POPULOUS | ||
MUNICIPALITIES FOR OBLIGATIONS FOR CERTAIN HOTELS. (a) This | ||
section applies only to a municipality with a population of 1.5 | ||
million or more. | ||
(b) Subject to the limitations provided by this section and | ||
Subchapter B, Chapter 351, Tax Code, a municipality may pledge the | ||
revenue derived from the tax imposed under Chapter 351, Tax Code, | ||
for the payment of the principal of or interest on bonds or other | ||
obligations of a municipally sponsored local government | ||
corporation created under Chapter 431, Transportation Code, issued | ||
to pay the cost of: | ||
(1) acquisition and construction of a convention | ||
center hotel; or | ||
(2) acquisition, remodeling, or rehabilitation of a | ||
historic hotel structure. | ||
(c) A municipality may pledge under this section only | ||
revenue that is collected at the hotel for which the revenue is | ||
pledged. | ||
Sec. 310.110. PLEDGE OF CERTAIN TAX REVENUE FOR OBLIGATIONS | ||
FOR HOTEL AND CONVENTION CENTER PROJECT. (a) In this section, | ||
"hotel and convention center project" means a project that is: | ||
(1) an existing hotel owned by a municipality or | ||
another person; and | ||
(2) a convention center facility to be acquired, | ||
constructed, equipped, or leased. | ||
(b) This section applies only to a municipality that: | ||
(1) is the county seat of a county that: | ||
(A) borders the United Mexican States; | ||
(B) has a population of less than 300,000; and | ||
(C) contains one or more municipalities with a | ||
population of 200,000 or more; and | ||
(2) holds an annual jalapeno festival. | ||
(c) A municipality is entitled to receive all revenue from a | ||
hotel and convention center project that a municipality is entitled | ||
to receive under Section 310.101 if a project for purposes of that | ||
section included a hotel and convention center project. The | ||
municipality may pledge the revenue for payment of obligations | ||
issued for the hotel and convention center project. | ||
Sec. 310.111. LIMITATION ON AUTHORITY OF CERTAIN | ||
MUNICIPALITIES TO PLEDGE CERTAIN TAX REVENUE FOR OBLIGATIONS. (a) | ||
This section applies only to a municipality described by Section | ||
310.101(a)(6) that is not an eligible central municipality. | ||
(b) A municipality may not pledge revenue under Section | ||
310.051 for a hotel project after the earlier of: | ||
(1) the 20th anniversary of the date the municipality | ||
first pledged the revenue for the hotel project; or | ||
(2) the date the revenue pledged for the hotel project | ||
equals 40 percent of the hotel project's total construction cost. | ||
SUBCHAPTER D. QUALIFIED MUNICIPALTIES | ||
Section 310.101(a) A qualified municipality means: | ||
(1) a municipality with a population of more than | ||
140,000 but less than 1.5 million that: | ||
(A) is located in a county with a population of | ||
one million or more; and | ||
(B) has adopted a capital improvement plan for | ||
the construction or expansion of a convention center facility; | ||
(2) a municipality with a population of 250,000 or | ||
more that: | ||
(A) is located wholly or partly on a barrier | ||
island that borders the Gulf of Mexico; | ||
(B) is located in a county with a population of | ||
300,000 or more; and | ||
(C) has adopted a capital improvement plan to | ||
expand an existing convention center facility; | ||
(3) a municipality with a population of 116,000 or | ||
more that: | ||
(A) is located in two counties both of which have | ||
a population of 660,000 or more; and | ||
(B) has adopted a capital improvement plan for | ||
the construction or expansion of a convention center facility; | ||
(4) a municipality with a population of less than | ||
50,000 that contains a general academic teaching institution that | ||
is not a component institution of a university system, as those | ||
terms are defined by Section 61.003, Education Code; | ||
(5) a municipality with a population of 640,000 or | ||
more that: | ||
(A) is located on an international border; and | ||
(B) has adopted a capital improvement plan for | ||
the construction or expansion of a convention center facility; | ||
(6) a municipality with a population of 173,000 or | ||
more that is located within two or more counties; | ||
(7) a municipality with a population of 96,000 or more | ||
that is located in a county that borders Lake Palestine; | ||
(8) 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; | ||
(9) a municipality with a population of at least | ||
99,900 but not more than 111,000 that is located in a county with a | ||
population of 135,000 or more; | ||
(10) a municipality with a population of at least | ||
110,000 but not more than 135,000 at least part of which is located | ||
in a county with a population of not more than 135,000; | ||
(11) a municipality with a population of at least | ||
9,000 but not more 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; | ||
(12) a municipality with a population of at least | ||
200,000 but not more than 300,000 that contains a component | ||
institution of the Texas Tech University System; | ||
(13) a municipality with a population of 95,000 or | ||
more that borders Lake Lewisville; | ||
(14) a municipality that: | ||
(A) contains a portion of Cedar Hill State Park; | ||
(B) has a population of more than 45,000; | ||
(C) is located in two counties, one of which has a | ||
population of more than two million and one of which has a | ||
population of more than 149,000; and | ||
(D) has adopted a capital improvement plan for | ||
the construction or expansion of a convention center facility; | ||
(15) a municipality with a population of less than | ||
6,000 that: | ||
(A) is located in two counties each with a | ||
population of 600,000 or more that are both adjacent to a county | ||
with a population of two million or more; | ||
(B) has full-time police and fire departments; | ||
and | ||
(C) has adopted a capital improvement plan for | ||
the construction or expansion of a convention center facility; | ||
(16) 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; | ||
(17) a municipality with a population of more than | ||
83,000 that: | ||
(A) borders Clear Lake; and | ||
(B) is primarily located in a county with a | ||
population of less than 300,000; | ||
(18) 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; | ||
(19) 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; | ||
(20) 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; | ||
(21) an eligible coastal municipality with a | ||
population of more than 3,000 but less than 5,000; | ||
(22) a municipality with a population of 65,200 or | ||
more that: | ||
(A) is located in a county with a population of | ||
449,000 or more; and | ||
(B) contains a portion of Lake Conroe and hosts | ||
an annual catfish festival; | ||
(23) a municipality with a population of 22,300 or | ||
more that: | ||
(A) is located in a county with a population of | ||
49,600 or more; and | ||
(B) contains a portion of the Guadalupe River and | ||
the Kerrville Schreiner park; | ||
(24) a municipality with a population of 6,100 or less | ||
that: | ||
(A) is located in two counties one with a | ||
population of 788,400 or more and the other county with a population | ||
of 666,700 or more; and | ||
(B) contains a portion of state highway 289; | ||
(25) 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; | ||
(26) a municipality that is the county seat of a county | ||
that has a population of 585,000 or more and is adjacent to a county | ||
with a population of four million or more, except that the | ||
municipality may also pledge revenue derived from the tax imposed | ||
under this chapter from a hotel project that is owned by or located | ||
on land owned by a nonprofit corporation or eleemosynary foundation | ||
acting on behalf of or in concert with the municipality; | ||
(27) a municipality that is the county seat of a county | ||
that has a population of at least 585,000 and is adjacent to a | ||
county with a population of four million or more; and | ||
(28) a municipality with a population of 25,200 or | ||
more that: | ||
(A) is located in a county with a population of | ||
116,500 or more that is adjacent to a county with a population of | ||
1.8 million or more; and | ||
(B) hosts an annual county peach festival. | ||
SECTION 2. Section 351.001(2), Tax Code, is amended to read | ||
as follows: | ||
(2) "Convention center facility [ |
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facility is a separate structure or connected to a hotel | ||
[ |
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meetings and gatherings of people that enhance and promote tourism | ||
and the convention and hotel industry, a [ |
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civic center [ |
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auditorium [ |
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[ |
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governmental entity or that is [ |
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municipality, and including a parking area or facility that is for | ||
the parking or storage of conveyances and is located at or in the | ||
vicinity of a convention center facility. The term includes: | ||
(A) in [ |
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1.5 million or more: | ||
(i) a hotel, the nearest property line of | ||
which is located not more than [ |
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municipality; and | ||
(ii) [ |
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nearest property line of which is located not more than [ |
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mile from the nearest property line of a convention center owned by | ||
the municipality; | ||
(B) in an eligible central municipality, [ |
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hotel, the nearest property line of which [ |
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of another [ |
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municipality, except as provided by Paragraph (C); and | ||
(C) in an eligible central municipality | ||
described by Subdivision (7)(D), [ |
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hotel, the nearest property line of which [ |
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[ |
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SECTION 3. Section 351.102(a), Tax Code, is amended to read | ||
as follows: | ||
(a) Subject to the limitations provided by this subchapter, | ||
a municipality may pledge the revenue derived from the tax imposed | ||
under this chapter for: | ||
(1) the payment of revenue bonds [ |
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under Section 1504.002(a), Government Code; and | ||
(2) [ |
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Section 351.101 or authorized by Chapter 310, Local Government Code | ||
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SECTION 4. Section 351.102(d), Tax Code, is redesignated as | ||
Section 351.1063, Tax Code, and amended to read as follows: | ||
Sec. 351.1063. ALLOCATION OF REVENUE FOR ADVERTISING AND | ||
PROMOTION: CERTAIN MUNICIPALITIES WITH HOTEL PROJECT. (a) This | ||
section applies only to a municipality described by Section | ||
310.051, Local Government Code, other than an eligible central | ||
municipality described by Section 351.001(7)(D). | ||
(b) A [ |
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imposed under this chapter or funds received under Section 310.101, | ||
Local Government Code, [ |
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Section 310.051, Local Government Code, [ |
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under this chapter and allocated for a purpose described by Section | ||
351.101(a)(3) to a percentage that is less than 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 hotel | ||
project. [ |
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SECTION 5. Section 351.102(f), Tax Code, is redesignated as | ||
Section 351.1064, Tax Code, and amended to read as follows: | ||
Sec. 351.1064. ALLOCATION OF REVENUE FOR CERTAIN SPORTING | ||
EVENT EXPENSES: CERTAIN MUNICIPALITIES WITH HOTEL PROJECT. (a) This | ||
section applies only to a municipality with a population of at least | ||
200,000 but not more than 300,000 that contains a component | ||
institution of the Texas Tech University System. | ||
(b) [ |
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that uses revenue derived from the tax imposed under this chapter or | ||
funds received under Section 310.101, Local Government Code, | ||
[ |
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or incurred for a hotel project under Section 310.051, Local | ||
Government Code, [ |
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year that begins after construction of the hotel project is | ||
complete and during any part of which the bonds or other obligations | ||
are outstanding, reduce the amount of revenue derived from the tax | ||
imposed under this chapter and allocated for a purpose described by | ||
Section 351.101(a)(6) to an amount that is less than the sum of: | ||
(1) the amount of the revenue derived from the tax | ||
imposed under this chapter and allocated by the municipality for a | ||
purpose described by Section 351.101(a)(6) during the fiscal year | ||
beginning October 1, 2016; and | ||
(2) three percent of the amount of revenue derived | ||
from the tax imposed under this chapter during the fiscal year for | ||
which the amount required by this subsection is being determined. | ||
SECTION 6. Section 351.103(b), Tax Code, is amended to read | ||
as follows: | ||
(b) Subsection (a) does not apply to a municipality in a | ||
fiscal year of the municipality if the total amount of hotel | ||
occupancy tax collected by the municipality in the most recent | ||
calendar year that ends at least 90 days before the date the fiscal | ||
year begins exceeds $2 million. A municipality excepted from the | ||
application of Subsection (a) by this subsection shall allocate | ||
hotel occupancy tax revenue by ordinance, consistent with the other | ||
limitations of this section. The portion of the tax revenue | ||
allocated by a municipality with a population of 1.5 million or more | ||
[ |
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351.101(a)(3) may not be less than 23 percent, except that the | ||
allocation is subject to and may not impair the authority of the | ||
municipality to: | ||
(1) pledge all or any portion of that tax revenue to | ||
the payment of bonds as provided by Section 351.102(a) of this code | ||
or Section 310.109, Local Government Code, or bonds issued to | ||
refund bonds secured by that pledge; or | ||
(2) spend all or any portion of that tax revenue for | ||
the payment of operation and maintenance expenses of convention | ||
center facilities. | ||
SECTION 7. Section 351.106(a), Tax Code, is amended to read | ||
as follows: | ||
(a) A municipality that has a population of 1.18 million or | ||
more, is located predominantly in a county that has a total area of | ||
less than 1,000 square miles, and [ |
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council-manager form of government shall use the amount of revenue | ||
from the tax imposed under this chapter that is derived from the | ||
application of the tax at a rate of more than four percent of the | ||
cost of a room as follows: | ||
(1) no more than 55 percent to: | ||
(A) construct, improve, enlarge, equip, and | ||
repair [ |
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[ |
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(B) pledge [ |
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and revenue refunding bonds issued under Subchapter A, Chapter | ||
1504, Government Code, for the municipality's convention center | ||
facilities [ |
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(2) at least 45 percent for the purposes provided by | ||
Section 351.101(a)(3). | ||
SECTION 8. The following provisions of the Tax Code are | ||
repealed: | ||
(1) Sections 351.102(b), (b-1), (c), (c-1), (e), and | ||
(g); and | ||
(2) Section 351.106(c). | ||
SECTION 9. The changes in law made by this Act apply only to | ||
a hotel project as defined by Section 310.001, Local Government | ||
Code, as added by this Act, for which a municipality first pledges | ||
revenue for bonds or other obligations under Chapter 310 of that | ||
code on or after September 1, 2017. A hotel project described by | ||
Section 351.102(b), Tax Code, as repealed by this Act, for which a | ||
municipality first pledges revenue for bonds or other obligations | ||
before September 1, 2017, is governed by the law in effect when the | ||
revenue was first pledged, and that law is continued in effect for | ||
purposes of those hotel projects. | ||
SECTION 10. The changes in law made by this Act do not | ||
affect the validity of a bond or other obligation for which revenue | ||
was pledged under 351.102, Tax Code, before January 1, 2020. Bonds | ||
or other obligations for which revenue was pledged before January | ||
1, 2020, are governed by the law in effect when the revenue was | ||
pledged, and that law is continued in effect for purposes of the | ||
validity of those bonds and obligations. | ||
SECTION 11. 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, 2019. |