Relating to the ability of certain municipalities and counties to elect not to participate in certain event reimbursement programs and to the allocation of a portion of the state hotel occupancy tax revenue collected in those municipalities and counties.
relating to the ability of certain municipalities and counties to
elect not to participate in certain event reimbursement programs
and to the allocation of a portion of the state hotel occupancy tax
revenue collected in those municipalities and counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 475, Government Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F. OPTION FOR CERTAIN MUNICIPALITIES AND COUNTIES TO
ELECT NOT TO PARTICIPATE IN CERTAIN EVENT REIMBURSEMENT PROGRAMS
Sec. 475.0251. OPTION FOR CERTAIN MUNICIPALITIES AND
COUNTIES TO ELECT NOT TO PARTICIPATE IN CERTAIN EVENT REIMBURSEMENT
PROGRAMS. (a) A municipality or county with a population of
400,000 or less may elect not to participate in the major events
reimbursement program under Chapter 478 and the events trust fund
under Chapter 480.
(b) A municipality or county that makes the election
authorized under this section is eligible to receive an allocation
of state hotel occupancy tax revenue collected in the municipality
or county as provided by Section 156.2514, Tax Code.
(c) For a period of four state fiscal years beginning
September 1, 2027, and for each period of four state fiscal years
that occurs after that period ends, a municipality or county may
make the election authorized under this section by providing
written notice of the election to the office of the governor.
(d) A municipality or county that makes the election
authorized under this section may not participate as an endorsing
municipality or endorsing county under Chapter 478, and is
ineligible for receipt of a disbursement from a fund established
under Chapter 480, during the four-year period for which the
municipality or county submits the notice required by Subsection
(c).
(e) A municipality or county that made the election
authorized under this section and that wishes to resume
participation in the major events reimbursement program and the
events trust fund after the expiration of the most recent four-year
period for which the municipality or county submitted the notice
required by Subsection (c) may revoke the election by providing
notice of the revocation to the office of the governor before the
earlier of:
(1) September 1 of the first year of the four-year
period beginning after the end of the most recent four-year period
for which the municipality or county submitted the notice required
by Subsection (c); or
(2) the date that is four months before the date an
eligible event under Section 478.0051 or Section 480.0051 will be
held in the municipality or county.
(f) A municipality or county that revokes an election
authorized under this section in the manner required by Subsection
(e) is eligible to resume participation in the major events
reimbursement program and the events trust fund on September 1 of
the first year beginning after the end of the most recent four-year
period for which the municipality or county submitted the notice
required by Subsection (c).
SECTION 2. Section 478.0051, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) Notwithstanding Subsection (b), an event listed in
Section 478.0001(3) may not receive funding through the program if
the event is held at a site in:
(1) a municipality that makes the election authorized
under Section 475.0251; or
(2) a county that makes the election authorized under
Section 475.0251, unless the event is held in a municipality that
does not make the election authorized under that section.
SECTION 3. Section 480.0051, Government Code, is amended to
read as follows:
Sec. 480.0051. EVENTS ELIGIBLE FOR FUNDING. (a) An event
is eligible for funding under this chapter only if:
(1) a site selection organization, after considering
through a highly competitive selection process one or more sites
not in this state, selects a site in this state for the event to be
held:
(A) one time; or
(B) if the event is scheduled under an event
contract or event support contract to be held each year for a period
of years, one time in each year;
(2) a site selection organization selects a site in
this state as:
(A) the sole site for the event; or
(B) the sole site for the event in a region
composed of this state and one or more adjoining states; and
(3) the event is held not more than one time in any
year in this state or an adjoining state.
(b) Notwithstanding Subsection (a), an event is ineligible
for funding under this chapter if the event is held at a site in:
(1) a municipality that makes the election authorized
under Section 475.0251; or
(2) a county that makes the election authorized under
Section 475.0251, unless the event is held in a municipality that
does not make the election authorized under that section.
SECTION 4. Section 480.00515, Government Code, is amended
to read as follows:
Sec. 480.00515. SINGLE YEAR CLASSIFICATION FOR ELIGIBILITY
PURPOSES FOR CERTAIN SPORTING EVENTS. For purposes of Sections
480.0051(a)(1) [480.0051(1)] and (3), a sporting event is
considered to be held one time in each year if the event is held only
one time in any annual season for that sport.
SECTION 5. Subchapter F, Chapter 156, Tax Code, is amended
by adding Section 156.2514 to read as follows:
Sec. 156.2514. ALLOCATION OF REVENUE TO CERTAIN
MUNICIPALITIES AND COUNTIES. (a) In this section:
(1) “Eligible county” means a county that makes the
election described by Section 475.0251, Government Code.
(2) “Eligible municipality” means a municipality that
makes the election described by Section 475.0251, Government Code.
(b) For the public purpose of economic development in rural
areas of this state, not later than the last day of the month
following a calendar quarter during which a municipality or county
is an eligible municipality or county, the municipality or county
is entitled to receive an allocation of a portion of the revenue
derived from the tax imposed under this chapter and collected from
hotels in the municipality or county, as applicable, in the manner
provided by this section.
(c) This subsection applies to an eligible municipality
located in a county that is not an eligible county. The amount of
the allocation an eligible municipality to which this subsection
applies is entitled to receive is equal to the amount of revenue
derived from the collection of the tax imposed under this chapter at
a rate of four percent and received from hotels located in the
eligible municipality.
(d) This subsection applies to an eligible municipality
located in a county that is an eligible county. The amount of the
allocation an eligible municipality to which this subsection
applies is entitled to receive is equal to 50 percent of the amount
of revenue derived from the collection of the tax imposed under this
chapter at a rate of four percent and received from hotels located
in the eligible municipality.
(e) This subsection applies to an eligible county in which
only municipalities that are not eligible municipalities are
located. The amount of the allocation an eligible county to which
this subsection applies is entitled to receive is equal to the
amount of revenue derived from the collection of the tax imposed
under this chapter at a rate of four percent and received from all
hotels located in the eligible county that are not located in a
municipality.
(f) This subsection applies to an eligible county in which
only municipalities that are eligible municipalities are located.
An eligible county to which this subsection applies is entitled to
receive an allocation equal to the sum of:
(1) 50 percent of the amount of revenue derived from
the collection of the tax imposed under this chapter at a rate of
four percent and received from hotels located in each eligible
municipality located in the eligible county; and
(2) the amount of revenue derived from the collection
of the tax imposed under this chapter at a rate of four percent and
received from hotels located in the eligible county that are not
located in an eligible municipality.
(g) This subsection applies to an eligible county in which
both eligible municipalities and municipalities that are not
eligible municipalities are located. An eligible county to which
this subsection applies is entitled to receive an allocation equal
to the sum of:
(1) 50 percent of the amount of revenue derived from
the collection of the tax imposed under this chapter at a rate of
four percent and received from hotels located in each eligible
municipality located in the eligible county; and
(2) the amount of revenue derived from the collection
of the tax imposed under this chapter at a rate of four percent and
received from hotels located in the eligible county that are not
located in a municipality.
(h) As soon as practicable after determining the amount to
which an eligible municipality or eligible county is entitled under
this section, the comptroller shall issue to the municipality or
county a warrant drawn on the general revenue fund for that amount.
(i) Money received under this section may be used:
(1) by an eligible municipality only in the manner
prescribed by Subchapter B, Chapter 351; and
(2) by an eligible county only in the manner
prescribed by Subchapter B, Chapter 352.
SECTION 6. This Act takes effect September 1, 2025.
