TITLE: Relating to the entitlement of certain municipalities to certain tax revenue related to a hotel and convention center project.

SUMMARY: Relating to the entitlement of certain municipalities to certain tax revenue related to a hotel and convention center project.

FULL TEXT:
AN ACT 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), [351.152(6)] or (29). SECTION 2. Section 351.156, Tax Code, is amended to read as follows: Sec. 351.156. ENTITLEMENT TO CERTAIN TAX REVENUE. (a) For purposes of this section, a restaurant, bar, or retail establishment is connected to a qualified hotel or a related qualified convention center facility if the restaurant, bar, or retail establishment: (1) shares an adjoining wall or roofline with the qualified hotel or the related qualified convention center facility; (2) is joined with the qualified hotel or the related qualified convention center facility by an intervening structure with walls or a ceiling that allows for passage between buildings; or (3) is located on a plot of land that: (A) shares a property boundary line with the plot of land on which the qualified hotel or the related qualified convention center facility is located; and (B) is developed as part of a qualified project of which the qualified hotel and the related qualified convention center facility are a part. (b) Subject to Sections 351.155(e) and 351.158, a municipality is entitled to receive the revenue derived from the following taxes generated, paid, and collected by a qualified hotel, and each restaurant, bar, and retail establishment located in or connected to the hotel or the related qualified convention center facility, that is located in the municipality: (1) the sales and use tax imposed under Chapter 151; (2) the hotel occupancy tax imposed under Chapter 156; and (3) if a political subdivision that is entitled to receive the revenue from the tax agrees in writing to the municipality receiving that revenue: (A) the sales and use tax imposed by the political subdivision under Chapter 322 or 323; (B) the hotel occupancy tax imposed by the political subdivision under Chapter 352; and (C) the mixed beverage tax issued under Section 183.051. SECTION 3. 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) or (5); or (ii) [owned by] the federal government if the establishment is located in a municipality described by Section 351.152(6); (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 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.