Bill Text: TX SB627 | 2023-2024 | 88th Legislature | Enrolled


Bill Title: Relating to the entitlement of certain municipalities to certain tax revenue related to a hotel and convention center project.

Spectrum: Bipartisan Bill

Status: (Passed) 2023-06-18 - Effective immediately [SB627 Detail]

Download: Texas-2023-SB627-Enrolled.html
 
 
  S.B. No. 627
 
 
 
 
AN ACT
  relating to the entitlement of certain municipalities to certain
  tax revenue related to a hotel and convention center project.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 351.153(a), Tax Code, is amended to read
  as follows:
         (a)  This section applies only to a municipality described by
  Section 351.152(5), (6), [351.152(6)] or (29).
         SECTION 2.  Sections 351.157(a), (b), and (c), Tax Code, are
  amended to read as follows:
         (a)  In this section, "qualified establishment" means an
  establishment:
               (1)  that is located on land:
                     (A)  owned by a municipality; or
                     (B)  owned by:
                           (i)  any person if the establishment is
  located in a municipality described by Section 351.152(3); [or]
                           (ii) [owned by] the federal government if the
  establishment is located in a municipality described by Section
  351.152(6); or
                           (iii)  a nonprofit corporation, including a
  public facility corporation, that is acting as or on behalf of, or
  that is controlled by, a municipality, if the establishment is
  located in a municipality described by Section 351.152(5);
               (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);
               (1-a)  a municipality described by Section 351.152(5);
               (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);
               (4-a)  a municipality described by Section
  351.152(14);
               (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);
               (11)  a municipality described by Section 351.152(38);
  and
               (12)  a municipality described by Section 351.152(43).
         (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;
               (1-a)  for a municipality described by Subsection
  (b)(1-a):
                     (A)  restaurants, bars, spas, 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),
  swimming pools and swimming facilities, 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;
               (4-a)  for a municipality described by Subsection
  (b)(4-a):
                     (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;
               (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; and
               (12)  for a municipality described by Subsection
  (b)(12):
                     (A)  restaurants, bars, and retail
  establishments; and
                     (B)  swimming pools and swimming facilities owned
  or operated by the related qualified hotel.
         SECTION 3.  Subchapter C, Chapter 351, Tax Code, is amended
  by adding Section 351.161 to read as follows:
         Sec. 351.161.  RECAPTURE OF LOST STATE TAX REVENUE FROM
  CERTAIN MUNICIPALITIES. (a) This section applies only to a
  municipality described by Section 351.152(5).
         (b)  On the 20th anniversary of the date a hotel designated
  as a qualified hotel by a municipality to which this section applies
  is open for initial occupancy, the comptroller shall determine:
               (1)  the total amount of state tax revenue received
  under Sections 351.156 and 351.157 by the municipality from the
  qualified project of which the qualified hotel was a part during the
  period for which the municipality was entitled to receive that
  revenue; and
               (2)  the total amount of state tax revenue described by
  Sections 351.156 and 351.157 received by the state during the
  period beginning on the 10th anniversary of the date the qualified
  hotel opened for initial occupancy and ending on the 20th
  anniversary of that date from the same sources from which the
  municipality received revenue under Section 351.156 or 351.157.
         (c)  If the amount determined under Subsection (b)(1)
  exceeds the amount determined under Subsection (b)(2), the
  comptroller shall promptly provide written notice to the
  municipality stating that the municipality must remit to the
  comptroller the difference between those two amounts in the manner
  provided by this subsection.  The municipality shall, using money
  lawfully available to the municipality for the purpose, remit
  monthly payments to the comptroller in an amount equal to the total
  amount of municipal hotel occupancy tax revenue received by the
  municipality from the qualified hotel in the preceding month until
  the amount remitted to the comptroller equals the total amount due
  as stated in the notice.  The first payment required under this
  subsection must be made not later than the 30th day after the date
  the municipality receives the notice from the comptroller.  
  Subsequent payments are due on the 20th day of each month until the
  total amount stated in the notice is paid.  The comptroller shall
  prescribe the procedure a municipality must use to remit a payment
  required by this subsection to the comptroller.
         (d)  The comptroller shall deposit revenue received under
  this section in the manner prescribed by Section 156.251.
         SECTION 4.  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, 2023.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 627 passed the Senate on
  April 20, 2023, by the following vote: Yeas 22, Nays 7; and that
  the Senate concurred in House amendment on May 25, 2023, by the
  following vote: Yeas 24, Nays 7.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 627 passed the House, with
  amendment, on May 23, 2023, by the following vote: Yeas 108,
  Nays 34, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
feedback