| (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.
(A) The owner of a qualified hotel project is entitled
to receive 100% of the state sales and use tax and state hotel occupancy
tax paid or collected by the qualified hotel project, and eligible
tax proceeds, during the first 10 years after the qualified 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. The comptroller does not have the authority to
issue tax rebates until the project is open for initial occupancy.
(B) Pursuant to Government Code, §2303.5055, 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 to the owner
of the qualified hotel project.
(C) Multiple qualified hotel projects.
(i) A municipality described in paragraph (1)(G) of
this subsection may designate more than one qualified hotel project.
(ii) After a facility ancillary to the hotel has entered
into a tax rebate agreement with a qualified hotel project, the ancillary
facility cannot associate with another qualified hotel project to
extend the 10-year tax rebate period in subparagraph (A) of this paragraph.
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