| (I) Surface parking lot facilities must be located
within 1,000 feet of the convention center facility or hotel, as measured
from the closest marked parking space of a surface parking lot facility
to the closest exterior wall of the convention center facility or
hotel. 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 or hotel will be eligible for
rebates.
(II) 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 hotel or convention center
facility that were not constructed, developed, or remodeled as part
of the hotel project.
(F) Governmental body--A local governmental body with
the authority to impose taxes.
(G) Hotel and Convention Center Project--A project
that is an existing hotel owned by the municipality or another person
and a convention center facility to be acquired, constructed, equipped,
or leased, that will be located within 1,000 feet of the hotel, and
that will be owned by or located on land owned by the municipality.
This subparagraph applies only to a municipality that:
(i) is the county seat of a county that:
(I) borders the United Mexican States;
(II) has a population of less than 300,000; and
(III) contains one or more municipalities with a population
of 200,000 or more; and
(ii) holds an annual jalapeño festival.
(H) Hotel Project--A hotel that is owned by or located
on land owned by a municipality or, for an eligible central municipality,
a nonprofit corporation acting on its behalf, and located within 1,000
feet of a convention center facility owned by the municipality, as
measured by the closest exterior wall of the hotel and the closest
exterior wall of the convention center facility. The parking lot is
not part of a convention center facility for the purpose of measuring
the 1,000-foot distance requirement. The term includes a facility
ancillary to the hotel as defined in subparagraph (E) of this paragraph.
(I) 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.
(J) Shop--A retail store that exclusively sells tangible
personal property.
(K) Tangible personal property--Personal property that
can be seen, weighed, measured, felt, or touched or that is perceptible
to the senses in any other manner, and includes a computer program
and a telephone prepaid calling card.
(2) Requirements to initiate a request for rebate,
refund, or payment of taxes for a hotel project.
(A) A municipality identified in paragraph (1)(E)(ii)
and (G) of this subsection 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 corporation acting on behalf of an eligible central municipality;
(ii) a copy of the municipality's capital improvement
plan;
(iii) a copy of the municipality's ordinance or resolution
approving the rebate agreement between the municipality or nonprofit
corporation acting on behalf of an eligible central municipality,
and the hotel project;
(iv) a copy of the architect's plan for the hotel project;
(v) a map that shows the required distances between
the hotel project, including facilities ancillary to the hotel, and
the convention center facility;
(vi) records from the hotel, convention center, and
municipality, such as guest folios and press releases, which show
the date when the project was open for initial occupancy;
(vii) 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;
(viii) the name and comptroller-issued taxpayer identification
and location numbers of each facility ancillary to the hotel;
(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
Cont'd... |
