HB2974 - Relating to municipal and county hotel occupancy taxes and the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project; authorizing the imposition of taxes.

      By: Craddick (Senate Sponsor - King, et al.) H.B. No. 2974          (In the Senate - Received from the House May 14, 2025;   May 14, 2025, read first time and referred to Committee on Economic   Development; May 23, 2025, reported adversely, with favorable   Committee Substitute by the following vote:  Yeas 5, Nays 0;   May 23, 2025, sent to printer.) Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR H.B. No. 2974 By:  Schwertner     A BILL TO BE ENTITLED   AN ACT     relating to municipal and county hotel occupancy taxes and the   authority of certain municipalities to receive certain tax revenue   derived from a hotel and convention center project and to pledge   certain tax revenue for the payment of obligations related to the   project; authorizing the imposition of taxes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 334.0082, Local Government Code, is   amended by adding Subsections (d), (e), (f), and (g) to read as   follows:           (d)     Notwithstanding Subsection (a) and subject to this   subsection, this section also applies to a municipality that has a   population of at least 70,000 but not more than 180,000 and that is   located in a county that borders the United Mexican States and the   Gulf of Mexico.   A municipality described by this subsection may   impose a tax as authorized under Subsection (b)(2) only to finance a   convention center constructed before January 1, 2023. The   authority of the municipality to impose the tax as authorized under   Subsection (b)(2) expires on the earlier of:                 (1)     the date the debt issued for the convention center   described by this subsection is repaid; or                 (2)  January 1, 2054.           (e)     Subsection (d) and this subsection expire January 1,   2054.           (f)     Notwithstanding Subsection (a) and subject to this   subsection, this section also applies to a municipality that has a   population of not more than 25,000, that contains a cultural   heritage museum, and that is located in a county that borders the   United Mexican States and the Gulf of Mexico.   A municipality   described by this subsection may impose a tax as authorized under   Subsection (b)(2) only to finance a convention center constructed   before January 1, 2025. The authority of the municipality to impose   the tax as authorized under Subsection (b)(2) expires on the   earlier of:                 (1)     the date the debt issued for the convention center   described by this subsection is repaid; or                 (2)  January 1, 2056.           (g)     Subsection (f) and this subsection expire January 1,   2056.          SECTION 2.  Section 156.2511, Tax Code, is amended by adding   Subsections (a-1) and (b-1) and amending Subsection (b) to read as   follows:           (a-1)     An eligible coastal municipality that receives a   warrant issued under Subsection (a) shall transfer the full amount   of the warrant   to the park board of trustees created by the   municipality not later than the last day of the calendar month   immediately following the date the municipality received the   warrant.          (b)   Money [ An eligible coastal municipality may use money ]   received under this section may be used only to clean and maintain   public beaches in the eligible coastal [ that ] municipality.           (b-1)     The comptroller may issue a warrant under this section   only if the eligible coastal municipality has:                 (1)     allocated at least one percent of the tax imposed   by the municipality under Chapter 351 to clean and maintain public   beaches in the municipality;                 (2)  either:                       (A)     applied for state funds under Subchapter C,   Chapter 61, Natural Resources Code; or                       (B)     made available to the comptroller the same   information required to be contained in an application under   Section 61.069, Natural Resources Code; and                 (3)     on the request of the comptroller, submitted to   the comptroller:                       (A)     financial data necessary to demonstrate that   the municipality has satisfied the requirements of Subdivision (1);   and                       (B)     a signed attestation stating that the   municipality has satisfied the requirements of this subsection.          SECTION 3.  Section 351.101, Tax Code, is amended by   amending Subsections (a) and (q) and adding Subsection (b-1) to   read as follows:          (a)  Revenue from the municipal hotel occupancy tax may be   used only to promote tourism and the convention and hotel industry,   and that use is limited to the following:                (1)  the acquisition of sites for and the construction,   improvement, enlarging, equipping, repairing, operation, and   maintenance of convention center facilities or visitor information   centers, or both;                (2)  the furnishing of facilities, personnel, and   materials for the registration of convention delegates or   registrants;                (3)  advertising and conducting solicitations and   promotional programs to attract tourists and convention delegates   or registrants to the municipality or its vicinity;                (4)  the encouragement, promotion, improvement, and   application of the arts, including instrumental and vocal music,   dance, drama, folk art, creative writing, architecture, design and   allied fields, painting, sculpture, photography, graphic and craft   arts, motion pictures, radio, television, tape and sound recording,   and other arts related to the presentation, performance, execution,   and exhibition of these major art forms;                (5)  historical restoration and preservation projects   or activities or advertising and conducting solicitations and   promotional programs to encourage tourists and convention   delegates to visit preserved historic sites or museums:                      (A)  at or in the immediate vicinity of convention   center facilities or visitor information centers; or                      (B)  located elsewhere in the municipality or its   vicinity that would be frequented by tourists and convention   delegates;                (6)  expenses, including promotion expenses, directly   related to a sporting event in which the majority of participants   are tourists who substantially increase economic activity at hotels   and motels within the municipality or its vicinity if:                      (A)  the municipality is located in a county with   a population of one million or less;                      (B)  the municipality has a population of more   than 67,000 and is located in two counties with 90 percent of the   municipality's territory located in a county with a population of   at least 800,000, and the remaining territory located in a county   with a population of at least four million; [ or ]                      (C)  the municipality has a population of at least   200,000 and shares a border with:                            (i)  a municipality with a population of at   least 62,000 that:                                  (a)  borders Lake Ray Hubbard; and                                  (b)  is located in two counties, one of   which has a population of less than 110,000; and                            (ii)  Lake Ray Hubbard;                       (D)  the municipality:                             (i)  has a population of at least 9,000;                             (ii)     is wholly located in a county in which   the State Capitol is located; and                             (iii)     is adjacent to or bisected by State   Highway 71; or                       (E)     the sporting event is conducted at a facility   located in and owned by a municipality:                             (i)     located in a county with a population of   2.2 million or more and that is adjacent to a county with a   population of more than 850,000; and                             (ii)  with a population of:                                   (a)     more than 51,000 but less than   57,000; or                                   (b)     less than 1.3 million and that is   bisected by Interstate Highway 20 and U.S. Highway 67;                (7)  subject to Section 351.1076, the promotion of   tourism by the enhancement and upgrading of existing sports   facilities or fields if:                      (A)  the municipality owns the facilities or   fields;                      (B)  the municipality:                            (i)  has a population of 80,000 or more and   is located in a county that has a population of 610,000 or less;                            (ii)  has a population of at least 80,000 but   not more than 125,000 and is located in a county that has a   population of less than 240,000 but more than 233,500;                            (iii)  has:                           [Text truncated for display. Full text available on Congress.gov.]