HB4140 - Relating to the use of certain tax revenue to acquire and enhance multipurpose venues and related infrastructure in certain counties.

  89R15429 JBD-D     By: Wharton H.B. No. 4140       A BILL TO BE ENTITLED   AN ACT   relating to the use of certain tax revenue to acquire and enhance   multipurpose venues and related infrastructure in certain   counties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 352, Tax Code, is amended   by adding Section 352.117 to read as follows:           Sec.   352.117.     CERTAIN QUALIFIED PROJECTS. (a)     In this   section:                 (1)     "Base year amount" means the amount of   hotel-associated revenue collected in a project financing zone   during the calendar year in which a county designates the zone.                 (2)  "Hotel-associated revenue" means the sum of:                       (A)     state tax revenue collected in a project   financing zone from all hotels located in the zone that would be   available to the owners of qualified hotel projects under Section   151.429(h) if the hotels were qualified hotel projects; and                       (B)     tax revenue collected from all permittees   under Chapter 183 at hotels located in the zone, excluding revenue   disbursed by the comptroller under Section 183.051(b).                 (3)     "Incremental hotel-associated revenue" means the   amount in any calendar year by which hotel-associated revenue,   including hotel-associated revenue from hotels built in the project   financing zone after the year in which a county designates the zone,   exceeds the base year amount.                 (4)     "Project financing zone" means an area within a   county:                       (A)     that the county by order designates as a   project financing zone;                       (B)     in which a qualified project is or will be   located; and                       (C)     the designation of which expires not later   than the 30th anniversary of the date of designation.                 (5)     "Qualified project" means a venue consisting of   multipurpose facilities to enhance hotel activity and encourage   tourism, and any related infrastructure, that is located on land   owned by a county or by the owner of the venue.                 (6)     "Venue" and "related infrastructure" have the   meanings assigned by Section 334.001, Local Government Code.           (b)     This section applies only to a qualified project located   in a county described by Section 352.002(i).           (c)     In addition to the other uses provided by this chapter,   revenue from the county hotel occupancy tax may be used to fund a   qualified project.           (d)     A county may pledge for the payment of bonds or other   obligations issued or incurred to acquire, lease, construct,   improve, enlarge, and equip a qualified project:                 (1)     the revenue derived from the tax imposed under   this chapter from a hotel located in the project financing zone;                 (2)     the local revenue from eligible tax proceeds as   defined by Section 2303.5055(e), Government Code, from hotels   located in a project financing zone that would be available to the   owners of qualified hotel projects under that section if the hotels   were qualified hotel projects; and                 (3)     the revenue the county is entitled to receive   under Subsection (e).           (e)     A county shall notify the comptroller of the county's   designation of a project financing zone not later than the 30th day   after the date the county designates the zone.   Notwithstanding   other law, the county is entitled to receive the incremental   hotel-associated revenue from the project financing zone for the   period beginning on the first day of the year after the year in   which the county designates the zone and ending on the last day of   the month during which the designation expires.           (f)     The comptroller shall deposit incremental   hotel-associated revenue collected by or forwarded to the   comptroller in a separate suspense account to be held in trust for   the county that is entitled to receive the revenue.   The suspense   account is outside the state treasury, and the comptroller may make   a payment authorized by this section from the account without the   necessity of an appropriation. The comptroller shall begin making   payments from the suspense account to the county for which the money   is held on the date the qualified project in the project financing   zone is commenced.   If the qualified project is not commenced by the   fifth anniversary of the first deposit to the account, the   comptroller shall transfer the money in the account to the general   revenue fund and cease making deposits to the account.           (g)     The comptroller may estimate the amount of incremental   hotel-associated revenue that will be deposited to a suspense   account under Subsection (f) during each calendar year.   The   comptroller may make deposits to the account and the county may   request disbursements from the account on a monthly basis based on   the estimate.   At the end of each calendar year, the comptroller   shall adjust the deposits and disbursements to reflect the amount   of revenue actually deposited to the account during the calendar   year.           (h)     A county shall notify the comptroller if the qualified   project in the project financing zone is abandoned.   If the   qualified project is abandoned, the comptroller shall transfer to   the general revenue fund the amount of money in the suspense account   that exceeds the amount required for the payment of bonds or other   obligations described by Subsection (d).          SECTION 2.  This Act takes effect September 1, 2025.