| (ii) The designation of the project financing zone
must include the longitude and latitude of the center of the qualified
project.
(C) The municipality is entitled to receive the incremental
hotel-associated revenue from hotels located in the project financing
zone beginning the first day of the year after the year of the zone's
date of designation.
(i) Payments of the incremental hotel-associated revenue
end on the last day of the month during which the designation of a
project financing zone expires.
(ii) The designation of a project financing zone expires
not later than 30 years from the anniversary month in which the zone
was designated.
(D) Beginning the first day of the year after the year
of the zone's date of designation, the comptroller shall deposit incremental
hotel-associated revenue collected or received in a separate trust
account.
(i) Payments from the trust account to the municipality
begin on the date a qualified project has commenced and the municipality
has provided the comptroller with the documentation required under
paragraph (2) of this subsection.
(ii) If the qualified project has not commenced by
the fifth anniversary of the first deposit to the account, the comptroller
shall stop making deposits and transfer the money in the account to
the general revenue fund.
(iii) The comptroller may estimate the amount of incremental
hotel-associated revenue that will be deposited for the calendar year
and deposit that amount to the trust account. The calculation of the
estimated incremental hotel-associated revenue is based on the base
year amount, less the previous year revenue amount for year one revenue
estimates. The next year's incremental difference is based on the
revenue from the previous year and the base year. The municipality
may request disbursements on a monthly basis based on the estimate.
The comptroller must adjust deposits and disbursements to reflect
the amount of revenue actually deposited at the end of each calendar
year.
(iv) A municipality must notify the comptroller if
a qualified project is abandoned. The comptroller shall transfer to
the general revenue fund the amount of money in the trust account
that exceeds the amount needed for payment of bonds or other obligations
issued or incurred under subparagraphs (A) and (C) of this paragraph.
(c) Qualified hotel projects.
(1) Definitions. The following words and terms, when
used in this subsection, shall have the following meanings, unless
the context clearly indicates otherwise.
(A) 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 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.
(B) Eligible tax proceeds--Local ad valorem taxes,
local sales and use taxes, local hotel occupancy taxes, local mixed
beverage gross receipts taxes, and local mixed beverage sales taxes
that are generated, paid, or collected by a qualified hotel project,
or facilities ancillary to the hotel, and that may be rebated, refunded,
or paid to the owner of a qualified hotel project under an agreement
with a municipality, county, or other governmental entity.
(C) Facility ancillary to the hotel--A facility located
within 1,000 feet of a convention center facility owned by a municipality,
as measured from the closest exterior wall of the ancillary facility
in a single-tenant building or closest demising wall of the ancillary
facility in a multi-tenant building to the closest exterior wall of
the convention center facility, that is located in a qualified hotel
project, and which provides necessary support for the operation and
function of the hotel. Surface parking lot facilities must be located
within 1,000 feet of the convention center facility, as measured from
the closest marked parking space of a surface parking lot facility
to the closest exterior wall of the convention center facility. Surface
parking lot facilities intersected by a public road or thoroughfare
are considered separate parking facilities. Only a parking lot facility
that contains a marked parking space within 1,000 feet of the convention
center facility will be eligible for rebates. The term includes facilities
ancillary to a hotel that are part of the hotel project but that may
be completed in different phases of the hotel project as evidenced
by documentation listed in paragraph (2) of this subsection. The term
does not include existing facilities located within 1,000 feet of
the convention center facility that were not constructed, developed,
or remodeled as part of the qualified hotel project.
(D) Governmental body--A local governmental body with
the authority to impose taxes.
(E) Nonprofit municipally sponsored local government
corporation--A corporation created under the Texas Transportation
Corporation Act, Transportation Code, Chapter 431 (Texas Transportation
Corporation Act). This definition also applies to the term "municipally
sponsored local government corporation."
(F) Open for initial occupancy--The earliest date on
which a member of the public obtains sleeping accommodations for consideration
and the convention center is operational, as supported by records
of the hotel and convention center.
(G) Qualified hotel project--A hotel proposed to be
constructed, or being constructed, by a municipality or nonprofit
municipally sponsored local government corporation, including a privately
owned or existing hotel selected by a municipality, that is located
within 1,000 feet of a convention center owned by a municipality having
a population of 1,500,000 or more, including shops, parking facilities,
and any other facilities ancillary to the hotel. The parking lot is
not part of a convention center facility for the purpose of measuring
the 1,000-foot distance requirement.
(2) Requirements to initiate a request for rebate,
refund, or payment of taxes for a qualified hotel project.
(A) The owner of a qualified hotel project seeking
a refund from the comptroller of state sales and use taxes, state
hotel occupancy taxes, and eligible tax proceeds must submit a written
request to the comptroller's Audit Division along with the following
information, as applicable:
(i) a copy of the certificate of formation for the
nonprofit municipally sponsored local government corporation;
(ii) a copy of the municipality's ordinance approving
the rebate agreement between the municipality or nonprofit municipally
sponsored local government corporation and the qualified hotel project;
(iii) a copy of the architect's plan for the qualified
hotel project;
(iv) a map that shows the required distances between
the qualified hotel project, including facilities ancillary to the
hotel, and the convention center facility;
(v) records from the hotel, convention center, and
municipality, such as guest folios and press releases, which show
the date when the qualified hotel project was open for initial occupancy;
(vi) the name and address of the hotel and the comptroller-issued
taxpayer identification and location numbers that the hotel is using,
or will use, to report sales and use tax, hotel occupancy tax, mixed
beverage gross receipts tax, and mixed beverage sales tax;
(vii) the name and comptroller-issued taxpayer identification
and location numbers of each facility ancillary to the hotel;
(viii) 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
owner of the qualified hotel project, the municipality, or the nonprofit
municipally sponsored local government corporation. A waiver of confidentiality
release must be renewed annually, unless it specifically states a
longer period not to exceed three years;
(ix) the name and telephone numbers of the contact
person for the qualified hotel project, the municipality, or the nonprofit
municipally sponsored local government corporation; and
(x) a completed direct deposit authorization form from
the owner of the qualified hotel project, the municipality, or the
nonprofit municipally sponsored local government corporation.
(B) The comptroller will give the requestor written
notice of the results of the request to initiate rebate, refund, or
payment of taxes for a qualified hotel project.
(3) Tax rebates for qualified hotel projects.
Cont'd... |
