HB3066 - Relating to the entitlement of certain municipalities to certain tax revenue associated with hotel and convention center projects.

  89R9098 RDS-F     By: Leach H.B. No. 3066       A BILL TO BE ENTITLED   AN ACT   relating to the entitlement of certain municipalities to certain   tax revenue associated with hotel and convention center projects.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 351.158, Tax Code, is amended to read as   follows:          Sec. 351.158.  PERIOD OF ENTITLEMENT.   (a)   Except as   provided by Subsection (b), a [ 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.           (b)     A municipality described by Section 351.152(46) is   entitled to receive revenue as provided by Sections 351.156 and   351.157 until the 20th anniversary of the date the qualified hotel   to which the entitlement relates is open for initial occupancy.          SECTION 2.  Section 351.162, Tax Code, is amended by   amending Subsections (b) and (c) and adding Subsection (b-1) to   read as follows:          (b)   Except as provided by Subsection (b-1), on [ On ] the 20th   anniversary of the date a hotel designated as a qualified hotel by a   municipality as part of a qualified project to which this section   applies is open for initial occupancy, the comptroller shall   determine:                (1)  the total amount of state tax revenue received   under Section 351.156 and, if applicable, under Section 351.157 by   the municipality from the qualified project during the period for   which the municipality was entitled to receive that revenue; and                (2)  the total amount of state tax revenue described by   Subdivision (1) 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 the   revenue described by Subdivision (1).           (b-1)     On the 40th anniversary of the date a hotel designated   as a qualified hotel by a municipality described by Section   351.152(46) as part of a qualified project to which this section   applies is open for initial occupancy, the comptroller shall   determine:                 (1)     the total amount of state tax revenue received   under Section 351.156 and, if applicable, under Section 351.157 by   the municipality from the qualified project during the period for   which the municipality was entitled to receive that revenue; and                 (2)     the total amount of state tax revenue described by   Subdivision (1) received by the state during the period beginning   on the 20th anniversary of the date the qualified hotel opened for   initial occupancy and ending on the 40th anniversary of that date   from the same sources from which the municipality received the   revenue described by Subdivision (1).          (c)  If the amount determined under Subsection (b)(1) or   (b-1)(1), as applicable, exceeds the amount determined under   Subsection (b)(2) or (b-1)(2), as applicable , 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.          SECTION 3.  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, 2025.