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 |
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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), [ |
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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); [ |
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(ii) [ |
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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 |