Bill Text: TX SB2194 | 2019-2020 | 86th Legislature | Comm Sub
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: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2019-05-17 - Committee report sent to Calendars [SB2194 Detail]
Download: Texas-2019-SB2194-Comm_Sub.html
86R31351 TJB-F | ||
By: Lucio | S.B. No. 2194 | |
(Lucio III) | ||
Substitute the following for S.B. No. 2194: No. |
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relating to the authority of certain municipalities to use certain | ||
tax revenue for hotel and convention center projects and other | ||
qualified projects. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 351.001, Tax Code, is amended by adding | ||
Subdivision (12) to read as follows: | ||
(12) "Retail establishment" means an establishment | ||
engaged in activities described by North American Industry | ||
Classification System subsector code 442, 443, 445, 446, 448, 451, | ||
452, or 453. | ||
SECTION 2. Sections 351.102(b), (c), and (e), Tax Code, are | ||
amended to read as follows: | ||
(b) A municipality described by Subsection (e) [ |
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the tax imposed under this chapter from a hotel project that is | ||
owned by or located on land owned by the municipality or, in an | ||
eligible central municipality, by a nonprofit corporation acting on | ||
behalf of an eligible central municipality, and that is located | ||
within 1,000 feet of a qualified convention center facility, as | ||
defined by Section 351.151, owned by the municipality for the | ||
payment of bonds or other obligations issued or incurred to | ||
acquire, lease, construct, and equip the hotel and any facilities | ||
ancillary to the hotel, including convention center | ||
entertainment-related facilities, [ |
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retail establishments [ |
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infrastructure necessary for the operation of the hotel or | ||
ancillary facilities, and parking facilities within 1,000 feet of | ||
the hotel or convention center facility. [ |
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this subsection, [ |
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municipality described by [ |
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only pledge revenue or other assets of the hotel project benefiting | ||
from those bonds or other obligations. | ||
(c) A [ |
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municipality described by [ |
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by Subsection (b) that an owner of a project may receive under | ||
Section 151.429(h) of this code, or Section 2303.5055, Government | ||
Code, and may pledge the funds for the payment of obligations issued | ||
under this section, but only if[ |
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derived from the tax imposed under this chapter from the project for | ||
the payment of bonds or other obligations issued or incurred for the | ||
project. | ||
(e) Subsection (b) applies only [ |
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(1) a municipality with a population of two million or | ||
more; | ||
(2) a municipality with a population of 700,000 or | ||
more but less than 1.3 million; | ||
(3) a municipality with a population of 350,000 or | ||
more but less than 450,000 in which two professional sports | ||
stadiums are located, each of which: | ||
(A) has a seating capacity of at least 40,000 | ||
people; and | ||
(B) was approved by the voters of the | ||
municipality as a sports and community venue project under Chapter | ||
334, Local Government Code; and | ||
(4) [ |
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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[ |
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SECTION 3. 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 CERTAIN PROJECTS. (a) This | ||
section applies only to a municipality described by Section | ||
351.102(e) or 351.152, 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 | ||
351.102(c), 351.156, or 351.157 [ |
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project under Section 351.102(b) or a qualified project under | ||
Section 351.155 [ |
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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 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 4. 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 QUALIFIED PROJECT. (a) | ||
This section applies only to 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. | ||
(b) [ |
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that uses revenue derived from the tax imposed under this chapter or | ||
funds received under Section 351.156 [ |
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of bonds, [ |
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or incurred for a qualified [ |
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after [ |
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and during any part of which the bonds, [ |
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contractual 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 5. Subchapter B, Chapter 351, Tax Code, is amended | ||
by adding Section 351.1021 to read as follows: | ||
Sec. 351.1021. PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE | ||
FOR CERTAIN PROJECTS. (a) In this section: | ||
(1) "Eligible municipality" means a municipality | ||
described by Section 351.102(e)(4). | ||
(2) "Multipurpose convention center facility" means a | ||
facility that will be constructed and, after that construction: | ||
(A) is used to host conventions, meetings, live | ||
performances, and sporting events; | ||
(B) is: | ||
(i) leased by an eligible municipality; or | ||
(ii) wholly owned by an eligible | ||
municipality, and none of which is or may be owned through an | ||
undivided common interest; | ||
(C) is not located in a hotel or other structure; | ||
(D) has at least 10,000 square feet of continuous | ||
and usable meeting space; and | ||
(E) is configurable to simultaneously | ||
accommodate multiple events described by Paragraph (A) of different | ||
sizes and types. | ||
(3) "Multipurpose convention center facility project" | ||
means a project that consists of a hotel owned by an eligible | ||
municipality or another person and a multipurpose convention center | ||
facility, the nearest exterior wall of which is located not more | ||
than 2,500 feet from the nearest exterior wall of the hotel. A | ||
multipurpose convention center facility project may include: | ||
(A) each new or existing business located in the | ||
municipality, regardless of who owns the business or the property | ||
on which the business is located, the nearest exterior wall of which | ||
is located not more than 2,500 feet from the nearest exterior wall | ||
of the multipurpose convention center facility or the hotel that is | ||
part of the project; | ||
(B) a parking shuttle or transportation system; | ||
and | ||
(C) any parking area or structure located in the | ||
municipality, regardless of who owns the area or structure or the | ||
property on which the area or structure is located, the nearest | ||
property line of which is located not more than two miles from the | ||
nearest exterior wall of the multipurpose convention center | ||
facility. | ||
(b) An eligible municipality or local government | ||
corporation acting on behalf of an eligible municipality is | ||
entitled to receive all funds from a multipurpose convention center | ||
facility project that the owner of a project could receive under | ||
Section 151.429(h) of this code or Section 2303.5055, Government | ||
Code, if a project for purposes of those provisions included a | ||
multipurpose convention center facility project. The municipality | ||
or local government corporation is entitled to receive the funds | ||
for a period of 10 years beginning on the date the multipurpose | ||
convention center facility is issued a certificate of occupancy. | ||
(c) An eligible municipality or local government | ||
corporation acting on behalf of an eligible municipality may pledge | ||
or commit the funds to which the municipality or local government | ||
corporation is entitled as provided by Subsection (b) for the | ||
payment of bonds, other obligations, or contractual obligations | ||
issued or incurred for the multipurpose convention center facility | ||
project. | ||
(d) The comptroller shall deposit the funds to which an | ||
eligible municipality or local government corporation is entitled | ||
as provided by Subsection (b) in a separate suspense account of the | ||
municipality outside the state treasury. | ||
(e) The comptroller may make a rebate, refund, or payment | ||
authorized under this section without the necessity of an | ||
appropriation. The comptroller shall rebate, refund, or pay to the | ||
eligible municipality the funds to which the municipality or local | ||
government corporation is entitled as provided by Subsection (b) at | ||
least quarterly. | ||
SECTION 6. Subchapter B, Chapter 351, Tax Code, is amended | ||
by adding Section 351.1022 to read as follows: | ||
Sec. 351.1022. PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE | ||
BY CERTAIN MUNICIPALITIES WITH SPORTS STADIUMS. (a) This section | ||
applies only to a municipality described by Section 351.102(e)(3). | ||
(b) A municipality is entitled to receive all funds from a | ||
hotel project described by Section 351.102(b) that an owner of a | ||
project may receive under Section 151.429(h) of this code or | ||
Section 2303.5055, Government Code, and all tax revenue collected | ||
under Chapter 183 by or from all permittees at the hotel project, | ||
excluding revenue disbursed by the comptroller under Section | ||
183.051(b). Notwithstanding any other law, the municipality is | ||
entitled to receive the funds for a period of 30 years beginning on | ||
the date the hotel project is open for initial occupancy. | ||
(c) The municipality may pledge the funds to which the | ||
municipality is entitled as provided by Subsection (b) for the | ||
payment of bonds, other obligations, or contractual obligations | ||
issued or incurred to acquire, lease, construct, improve, enlarge, | ||
and equip the hotel project. | ||
(d) The comptroller shall deposit the funds to which the | ||
municipality is entitled as provided by Subsection (b) in a | ||
separate suspense account of the municipality outside the state | ||
treasury. | ||
(e) The comptroller may make a rebate, refund, or payment | ||
authorized under this section without the necessity of an | ||
appropriation. The comptroller shall rebate, refund, or pay to the | ||
municipality the funds to which the municipality is entitled as | ||
provided by Subsection (b) at least monthly. | ||
SECTION 7. Chapter 351, Tax Code, is amended by adding | ||
Subchapter C to read as follows: | ||
SUBCHAPTER C. MUNICIPAL HOTEL AND CONVENTION CENTER PROJECTS | ||
Sec. 351.151. DEFINITIONS. In this subchapter: | ||
(1) "Infrastructure" includes: | ||
(A) a road, street, highway, bridge, overpass, | ||
underpass, and interchange; | ||
(B) a fresh, reuse, or alternative water supply | ||
system, sanitary sewer system, and storm drainage system; | ||
(C) an electric system, telecommunications | ||
system, and gas system; | ||
(D) signage, landscaping, and hardscaping; and | ||
(E) a public amenity or public area, such as a | ||
plaza, park, or trail. | ||
(2) "Qualified convention center facility" means a | ||
facility that has been or will be constructed and that: | ||
(A) is primarily used to host conventions or | ||
meetings; | ||
(B) is wholly owned by a municipality to which | ||
this subchapter applies, and none of which is or may be owned | ||
through an undivided common interest; | ||
(C) is connected to a qualified hotel or has an | ||
exterior wall that is located not more than 1,000 feet from the | ||
nearest exterior wall of a qualified hotel; | ||
(D) is not located in a hotel, sports stadium, or | ||
other structure but may share common infrastructure or facilities | ||
with a hotel, such as a heating, ventilation, and air-conditioning | ||
system, electrical system, or kitchen; | ||
(E) has at least 10,000 square feet of continuous | ||
meeting space; and | ||
(F) is configurable to simultaneously | ||
accommodate multiple events described by Paragraph (A) of different | ||
sizes and types. | ||
(3) "Qualified hotel" means a hotel that is designated | ||
by a municipality to which this subchapter applies as the hotel that | ||
is part of a qualified project. A qualified hotel: | ||
(A) must be located on land owned by the | ||
designating municipality; | ||
(B) must be connected to a qualified convention | ||
center facility or have an exterior wall that is located not more | ||
than 1,000 feet from the nearest exterior wall of the qualified | ||
convention center facility; and | ||
(C) may consist of two or more towers, regardless | ||
of whether named or branded differently, that: | ||
(i) are constructed at the same time; and | ||
(ii) each meet the requirements of | ||
Paragraphs (A) and (B). | ||
(4) "Qualified project" means a project: | ||
(A) to: | ||
(i) acquire, construct, repair, remodel, | ||
expand, or equip a qualified convention center facility; or | ||
(ii) acquire, lease, construct, repair, | ||
remodel, expand, or equip a qualified hotel; and | ||
(B) that may include: | ||
(i) acquiring, leasing, constructing, | ||
repairing, remodeling, expanding, or equipping: | ||
(a) a restaurant, bar, retail | ||
establishment, or spa located in a qualified convention center | ||
facility or qualified hotel or connected to a qualified convention | ||
center facility or qualified hotel, including by a covered walkway; | ||
or | ||
(b) a parking area or structure, the | ||
nearest property line of which is located not more than 1,000 feet | ||
from the nearest property line of a qualified convention center | ||
facility or qualified hotel; | ||
(ii) acquiring, constructing, repairing, | ||
remodeling, or expanding infrastructure that: | ||
(a) is directly related to and | ||
necessary for the qualified convention center facility or qualified | ||
hotel; and | ||
(b) is located within the property | ||
lines of the qualified convention center facility or qualified | ||
hotel, or not more than 1,000 feet from the nearest property line of | ||
the facility or hotel; or | ||
(iii) acquiring a property right, including | ||
a fee simple interest, easement, or other interest in connection | ||
with a purpose described by this subdivision. | ||
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; and | ||
(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. | ||
Sec. 351.153. EXCEPTION TO OWNERSHIP REQUIREMENT. (a) | ||
This section applies only to a municipality described by Section | ||
351.152(6) or (29). | ||
(b) Section 351.151(2)(B) does not apply to a facility that | ||
otherwise meets the requirements of a qualified convention center | ||
facility under Section 351.151. | ||
(c) Section 351.151(3)(A) does not apply to a hotel that | ||
otherwise meets the requirements of a qualified hotel under Section | ||
351.151. | ||
Sec. 351.154. NONPROFIT CORPORATION AS MUNICIPAL AGENT. A | ||
municipality may authorize a nonprofit corporation to act on behalf | ||
of the municipality for any purpose under this subchapter. | ||
Sec. 351.155. PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE | ||
FOR OBLIGATIONS FOR QUALIFIED PROJECT. (a) In addition to the | ||
authority of a municipality to issue debt under Chapter 1504, | ||
Government Code, a municipality may pledge or commit the revenue | ||
derived from the tax imposed under this chapter from a qualified | ||
hotel and the revenue to which the municipality is entitled under | ||
Section 351.156 and, if applicable, Section 351.157 for the payment | ||
of: | ||
(1) bonds or other obligations issued for a qualified | ||
project; and | ||
(2) contractual obligations related to the project, | ||
including obligations under: | ||
(A) a contract authorized by Chapter 380, Local | ||
Government Code, for the project; and | ||
(B) an interlocal agreement directly related to | ||
the project. | ||
(b) A municipality may pledge or commit revenue for the | ||
payment of bonds, other obligations, or contractual obligations | ||
under Subsection (a) only if the qualified hotel that is a component | ||
of the qualified project for which that revenue is pledged or | ||
committed benefits from the pledging or committing of that revenue. | ||
(c) A municipality may pledge or commit revenue under this | ||
section for only one qualified project. After a municipality | ||
pledges or commits revenue under this section for a qualified | ||
project, the municipality may not ever again pledge or commit | ||
revenue for a qualified project. | ||
(d) Subsection (c) does not apply to a municipality with a | ||
population of 175,000 or more. | ||
(e) A municipality is not entitled to receive revenue under | ||
Section 351.156 or 351.157 unless the municipality has pledged or | ||
committed a portion of the revenue derived from the tax imposed | ||
under this chapter and collected by the qualified hotel for the | ||
payment of bonds, other obligations, or contractual obligations | ||
described by Subsection (a) and issued or incurred for the | ||
qualified project. | ||
Sec. 351.156. ENTITLEMENT TO CERTAIN TAX REVENUE. Subject | ||
to Sections 351.155(e) and 351.158, 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. | ||
Sec. 351.157. ADDITIONAL ENTITLEMENT FOR CERTAIN | ||
MUNICIPALITIES. (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); | ||
(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); | ||
(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); | ||
and | ||
(11) a municipality described by Section 351.152(38). | ||
(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), | ||
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; | ||
(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; and | ||
(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. | ||
(d) Subject to 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. | ||
(e) A municipality to which this section applies is not | ||
entitled to receive revenue under Subsection (d) unless the | ||
municipality commences a qualified project under this subchapter | ||
before September 1, 2023. | ||
Sec. 351.158. PERIOD OF ENTITLEMENT. 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. | ||
Sec. 351.159. DEPOSIT OF REVENUE. Notwithstanding any | ||
other law, the comptroller shall deposit the revenue from the taxes | ||
described by Sections 351.156 and 351.157 that were collected by or | ||
forwarded to the comptroller in trust in a separate suspense | ||
account of the qualified 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. 351.160. QUARTERLY PAYMENTS. The comptroller shall | ||
pay to each municipality the revenue to which the municipality is | ||
entitled under this subchapter at least quarterly. | ||
SECTION 8. Sections 351.102(b-1), (c-1), and (g), Tax Code, | ||
are repealed. | ||
SECTION 9. The comptroller of public accounts may adopt | ||
rules as necessary to administer this Act. | ||
SECTION 10. The changes in law made to Subchapter B, Chapter | ||
351, Tax Code, by this Act apply only to a hotel project described | ||
by Section 351.102(b), Tax Code, as amended by this Act, for which a | ||
municipality by ordinance or resolution first authorizes the | ||
issuance of bonds or other obligations, executes an agreement under | ||
Chapter 380, Local Government Code, or executes an interlocal | ||
agreement directly related to the project that is secured by a | ||
pledge or commitment of revenue under that subsection for the | ||
project on or after the effective date of this Act. A hotel project | ||
described by Section 351.102(b), Tax Code, for which a municipality | ||
by ordinance or resolution first authorized the issuance of bonds | ||
or other obligations, executed an agreement under Chapter 380, | ||
Local Government Code, or executed an interlocal agreement directly | ||
related to the project that is secured by a pledge or commitment of | ||
revenue under that subsection for the project before the effective | ||
date of this Act is governed by the law in effect when the ordinance | ||
was adopted or the agreement was executed, and that law is continued | ||
in effect for purposes of those hotel projects. | ||
SECTION 11. Subchapter C, Chapter 351, Tax Code, as added by | ||
this Act, applies only to a qualified project as defined by Section | ||
351.151, Tax Code, as added by this Act, for which a municipality by | ||
ordinance or resolution first authorizes the issuance of bonds or | ||
other obligations, executes or amends an agreement under Chapter | ||
380, Local Government Code, or executes or amends an interlocal | ||
agreement directly related to the qualified project that is secured | ||
by a pledge or commitment of revenue under Subchapter C, Chapter | ||
351, Tax Code, for the project on or after the effective date of | ||
this Act. | ||
SECTION 12. The changes in law made by this Act do not | ||
affect the validity of a bond, other obligation, or contractual | ||
obligation for which revenue was pledged or committed under Section | ||
351.102, Tax Code, before the effective date of this Act. Bonds, | ||
other obligations, or contractual obligations for which revenue was | ||
pledged or committed before the effective date of this Act are | ||
governed by the law in effect when the revenue was pledged or | ||
committed, and that law is continued in effect for purposes of the | ||
validity of those bonds, obligations, and contractual obligations. | ||
SECTION 13. This Act takes effect September 1, 2019. |