Tex. Tax Code § 351.162 — RECAPTURE OF LOST STATE TAX REVENUE FROM CERTAIN MUNICIPALITIES

(a) This section: (1) applies only to a qualified project that is first commenced on or after: (A) January 1, 2024, unless Paragraph (B) applies to the qualified project; or (B) January 1, 2027, if the qualified project was authorized before January 1, 2023, by a municipality with a population of 175,000 or more; and (2) notwithstanding Subdivision (1), does not apply to a qualified project that is the subject of an economic development agreement authorized by Chapter 380 , Local Government Code, entered into on or before January 1, 2022. (b) On the 20th anniversary of the date a hotel designated as a qualified hotel by a municipality as part of a qualified project to which this section applies is open for initial occupancy, the comptroller shall determine: (1) the total amount of state tax revenue received under Section 351.156 and, if applicable, under Section 351.157 by the municipality from the qualified project during the period for which the municipality was entitled to receive that revenue; and (2) the total amount of state tax revenue described by Subdivision (1) received by the state during the period beginning on the 10th anniversary of the date the qualified hotel opened for initial occupancy and ending on the 20th anniversary of that date from the same sources from which the municipality received the revenue described by Subdivision (1). (c) If the amount determined under Subsection (b)(1) exceeds the amount determined under Subsection (b)(2), the comptroller shall promptly provide written notice to the municipality stating that the municipality must remit to the comptroller the difference between those two amounts in the manner provided by this subsection. The municipality shall, using money lawfully available to the municipality for the purpose, remit monthly payments to the comptroller in an amount equal to the total amount of municipal hotel occupancy tax revenue received by the municipality from the qualified hotel in the preceding month until the amount remitted to the comptroller equals the total amount due as stated in the notice. The first payment required under this subsection must be made not later than the 30th day after the date the municipality receives the notice from the comptroller. Subsequent payments are due on the 20th day of each month until the total amount stated in the notice is paid. The comptroller shall prescribe the procedure a municipality must use to remit a payment required by this subsection to the comptroller. (d) The comptroller shall deposit revenue received under this section in the manner prescribed by Section 156.251 . Added by Acts 2023, 88th Leg., R.S., Ch. 357 (S.B. 1420 ), Sec. 7, eff. June 2, 2023. Added by Acts 2023, 88th Leg., R.S., Ch. 643 (H.B. 3727 ), Sec. 8, eff. June 12, 2023.