Texas Tax Code

Sec. § 351.1068
Allocation of Revenue for Sports Facilities by Certain Municipalities


(a)

This section applies only to a municipality that is the county seat of a county that:

(1)

is located on the Texas-Mexico border;

(2)

has a population of 500,000 or more; and

(3)

is adjacent to two or more counties, each of which has a population of 50,000 or more.

(b)

A municipality to which this section applies may use revenue derived from the municipal hotel occupancy tax to construct, maintain, or expand a sporting-related facility, a sporting-related field, or related infrastructure as defined by Section 334.001 (Definitions), Local Government Code, that is located within 2,500 feet of the facility or field and is directly related to the facility or field, provided that:

(1)

the facility, field, or infrastructure is located on property owned by the municipality; and

(2)

the municipality’s sports facilities and fields have been used in the preceding calendar year a combined total of more than 10 times for district, state, regional, or national sports tournaments, games, or events.

(c)

A municipality to which this section applies that uses revenue derived from the municipal hotel occupancy tax for a purpose described by Subsection (b):

(1)

shall determine the amount of municipal hotel occupancy tax revenue generated for the municipality by hotel activity attributable to the newly constructed, enhanced, or upgraded facilities, fields, or related infrastructure for 10 years after the date the original construction, enhancements, or upgrades of the first of the facilities or fields are completed; and

(2)

may not spend municipal hotel occupancy tax revenue for the construction, enhancement, or upgrading of the facilities, fields, or related infrastructure in a total amount that exceeds the amount of area hotel revenue attributable to the construction, enhancements, or upgrades as determined under Subdivision (1).

(d)

A municipality to which this section applies shall reimburse from the municipality’s general fund any expenditure in excess of the amount of area hotel revenue attributable to the construction, enhancements, or upgrades to the municipality’s hotel occupancy tax revenue fund.

(e)

If a municipality to which this section applies uses revenue derived from the municipal hotel occupancy tax for a purpose described by Subsection (b), the municipality may not reduce the percentage of revenue from that tax allocated for a purpose described by Section 351.101 (Use of Tax Revenue)(a)(3) to a percentage that is less than the average percentage of that revenue allocated by the municipality for that purpose during the 36-month period preceding the date the municipality begins using the revenue for a purpose described by Subsection (b).
Added by Acts 2017, 85th Leg., R.S., Ch. 227 (S.B. 1136), Sec. 1, eff. May 29, 2017.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 1016 (S.B. 2137), Sec. 1, eff. September 1, 2019.
Source

Last accessed
Jun. 7, 2021