| (ix) waiver of confidentiality releases signed by the
authorized officer or director of the hotel and each facility ancillary
to the hotel allowing the comptroller to release the facility's sales
and use tax and mixed beverage sales tax information to the municipality
or the nonprofit corporation acting on behalf of an eligible central
municipality. A waiver of confidentiality release must be renewed
annually, unless it specifically states a longer period not to exceed
three years;
(x) the name and telephone numbers of the contact person
for the municipality or the nonprofit corporation acting on behalf
of an eligible central municipality; and
(xi) a completed direct deposit authorization form
from the municipality or the nonprofit corporation acting on behalf
of an eligible central municipality.
(B) The comptroller will give the requestor written
notice of the results of the request for rebate, refund, or payment
of taxes for a hotel project.
(3) Tax rebates for hotel projects.
(A) A municipality described in paragraph (1)(E)(ii)
of this subsection is entitled to receive from a hotel project 100%
of the state sales and use tax and state hotel occupancy tax paid
or collected by the hotel project, and eligible tax proceeds, during
the first 10 years after the hotel project is open for initial occupancy.
The tax rebate period ends on the tenth anniversary of the date the
hotel project opened for initial occupancy.
(B) Pursuant to Government Code, §2303.5055 (Refund,
Rebate, or Payment of Tax Proceeds to Qualified Hotel Project), the
comptroller can only rebate eligible tax proceeds that a governmental
body has agreed to rebate. The agreement must be in writing and specify
that the comptroller rebate the eligible tax proceeds directly to
the municipality.
(C) A municipality described in paragraph (1)(E)(ii)(VI-XVII)
of this subsection is not entitled to receive funds from a hotel project
unless the municipality has pledged the revenue derived from the hotel
occupancy paid or collected from the hotel project for the payment
of bonds or other obligations issued or incurred for the hotel project.
(D) A municipality may not receive or pledge revenue
or funds for a hotel project or hotel and convention center project
unless the municipality enters into an agreement with a person for
the development of the hotel project before September 1, 2019.
(E) A municipality described in paragraph (1)(G) of
this subsection is entitled to receive from a hotel and convention
center project 100% of the state sales and use tax and state hotel
occupancy tax paid or collected by the hotel project, and eligible
tax proceeds, during the first 10 years after the hotel project is
open for initial occupancy. The tax rebate period ends on the tenth
anniversary of the date the hotel project opened for initial occupancy.
(4) Multiple hotel projects.
(A) A municipality described in paragraph (1)(E)(ii)
of this subsection may designate more than one hotel project.
(B) After a facility ancillary to the hotel has entered
into a tax rebate agreement with a hotel project, the facility cannot
associate with another hotel project to extend the 10-year tax rebate
period in paragraph (3)(A) of this subsection.
(b) Project financing zones.
(1) Definitions. The following words and terms, when
used in this subsection, shall have the following meanings, unless
the context clearly indicates otherwise.
(A) Base year amount--The amount of hotel-associated
revenue collected in a project financing zone during the calendar
year that includes the zone's date of designation.
(B) Commenced--The date a contract to acquire, lease,
construct, improve, enlarge, or equip a qualified project is executed.
(C) Convention center facilities--Facilities that are
primarily used to host conventions and meetings. The term means civic
centers, civic center buildings, auditoriums, exhibition halls, and
coliseums that are owned by the municipality or other governmental
entity or that are managed in whole or part by the municipality. The
term includes:
(i) parking areas or facilities that are for the parking
or storage of conveyances and that are located at or in the vicinity
of other convention center facilities; and
(ii) a hotel owned by or located on land owned by an
eligible central municipality or a nonprofit organization acting on
behalf of an eligible central municipality and that is located within
1,000 feet of a convention center facility owned by the municipality.
(D) Date of designation--The date a municipality by
ordinance or agreement under Local Government Code, Chapter 380 (Miscellaneous
Provisions Relating to Municipal Planning and Development) designates
a project financing zone.
(E) Hotel-associated revenue--The amount of tax revenue
that is the sum of the following:
(i) state sales and use taxes and state hotel occupancy
taxes collected from all hotels located in a project financing zone,
excluding the state tax revenue received from a qualified hotel project
that exists on the zone's date of designation; and
(ii) the mixed beverage gross receipts tax and mixed
beverage sales tax revenue collected from all mixed beverage permittees
at hotels located in the project financing zone, excluding the local
mixed beverage taxes disbursed to the municipality under Tax Code, §183.051
(Mixed Beverage Tax Clearance Fund).
(F) Incremental hotel-associated revenue--The amount
of hotel-associated revenue received in any calendar year from hotels
located within a project financing zone, including hotel-associated
revenue from hotels built in the project financing zone after the
year in which a municipality designates the zone, that exceeds the
base year amount. After the hotel project's 10-year state tax rebate
period expires, the hotel-associated revenue received from a hotel
located in a hotel project that existed on the zone's date of designation
is included in incremental hotel-associated revenue, but not included
in the base year amount.
(G) Project financing zone--An area within a municipality:
(i) that the municipality by ordinance or by agreement
under Local Government Code, Chapter 380, designates as a project
financing zone;
(ii) the boundaries of which are within a three-mile
radius of the center of a qualified project;
(iii) the designation of which specifies the longitude
and latitude of the center of the qualified project; and
(iv) the designation of which expires not later than
the 30th anniversary of the date of designation.
(H) Qualified project--
(i) A convention center facility; or
(ii) a multipurpose arena or venue that includes a
livestock facility and is located within or adjacent to a recognized
cultural district, and any related infrastructure, that is:
(I) located on land owned by a municipality or by the
owner of the venue;
(II) partially financed by private contributions that
equal not less than 40% of the project costs; and
(III) related to the promotion of tourism and the convention
and hotel industry.
(I) Related infrastructure--The term includes any store,
restaurant, on-site hotel, concession, automobile parking facility,
area transportation facility, road, street, water or sewer facility,
park, or other on-site or off-site improvement that relates to and
enhances the use, value, or appeal of a venue, including areas adjacent
to the venue, and any other expenditure reasonably necessary to construct,
improve, renovate, or expand a venue, including an expenditure for
environmental remediation.
(J) Venue--
(i) an arena, coliseum, stadium, or other type of area
or facility:
(I) that is used or is planned for use for one or more
professional or amateur sports events, community events, or other
sports events, including rodeos, livestock shows, agricultural expositions,
promotional events, and other civic or charitable events; and
(II) for which a fee for admission to the events is
charged or is planned to be charged;
(ii) a convention center, convention center facility,
or related improvement, such as a civic center hotel, theater, opera
house, music hall, rehearsal hall, park, zoological park, museum,
aquarium, or plaza, located in the vicinity of a convention center
or convention center facility owned by a municipality or a county;
(iii) a tourist development area along an inland waterway;
(iv) a municipal parks and recreation system, or improvements
or additions to a parks and recreation system, or an area or facility
that is part of a municipal parks and recreation system;
(v) a project authorized by Section 4A or 4B, Development
Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes),
as that Act existed on September 1, 1997; and
Cont'd... |
