Wharton Venue Bill Pays Out State Tax Without An Appropriation

The text as introduced · 826 words

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.