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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain municipalities to pledge |
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revenue from the municipal hotel occupancy tax for the payment of |
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obligations related to hotel projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.102, Tax Code, is amended by |
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amending Subsections (b), (c), and (d) and adding Subsection (e) to |
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read as follows: |
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(b) An eligible central municipality, a municipality with a |
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population of 173,000 or more that is located within two or more |
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counties, a municipality with a population of 96,000 or more that is |
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located in a county that borders Lake Palestine or contains the |
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headwaters of the San Gabriel River, or a municipality with a |
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population of at least 99,900 but not more than 111,000 that is |
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located in a county with a population of at least 135,000 may pledge |
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the revenue derived from the tax imposed under this chapter from a |
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hotel project that is owned by or located on land owned by the |
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municipality or, in an eligible central municipality, by a |
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nonprofit corporation acting on behalf of an eligible central |
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municipality, and that is located within 1,000 feet of a convention |
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center facility owned by the municipality for the payment of bonds |
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or other obligations issued or incurred to acquire, lease, |
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construct, and equip the hotel and any facilities ancillary to the |
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hotel, including convention center entertainment-related |
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facilities, meeting spaces, restaurants, shops, street and water |
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and sewer infrastructure necessary for the operation of the hotel |
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or ancillary facilities, and parking facilities within 1,000 feet |
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of the hotel or convention center facility. For bonds or other |
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obligations issued under this subsection, an eligible central |
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municipality or a municipality described by this subsection or |
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Subsection (e) may only pledge revenue or other assets of the hotel |
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project benefiting from those bonds or other obligations. |
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(c) A municipality to which Subsection (b) or (e) applies is |
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entitled to receive all funds from a project described by this |
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section that an owner of a project may receive under Section |
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151.429(h) of this code, or Section 2303.5055, Government Code, and |
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may pledge the funds for the payment of obligations issued under |
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this section. |
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(d) Except as provided by this subsection, an eligible |
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central municipality or another municipality described by |
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Subsection (b) or (e) that uses revenue derived from the tax imposed |
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under this chapter or funds received under Subsection (c) for a |
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hotel project described by Subsection (b) may not reduce the |
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percentage of revenue from the tax imposed under this chapter and |
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allocated for a purpose described by Section 351.101(a)(3) to a |
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percentage that is less than the average percentage of that revenue |
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allocated by the municipality for that purpose during the 36-month |
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period preceding the date the municipality begins using the revenue |
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or funds for the hotel project. This subsection does not apply to |
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an eligible central municipality described by Section |
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351.001(7)(D). |
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(e) In addition to the municipalities described by |
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Subsection (b), that subsection also applies to a municipality with |
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a population of at least 9,000 but not more than 10,000 that is |
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located in two counties, each of which has a population of at least |
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662,000 and a southern border with a county with a population of 2.3 |
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million or more. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |
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* * * * * |