HB 4140

relating to the use of certain tax revenue to acquire and enhance
multipurpose venues and related infrastructure in certain
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter B, Chapter 352, Tax Code, is amended
by adding Section 352.117 to read as follows:
Sec. 352.117.  CERTAIN QUALIFIED PROJECTS.  (a)  In this
(1)  "Base year amount" means the amount of
hotel-associated revenue collected in a project financing zone
during the calendar year in which a county designates the zone.
(2)  "Hotel-associated revenue" means the sum of:
(A)  state tax revenue collected in a project
financing zone from all hotels located in the zone that would be
available to the owners of qualified hotel projects under Section
151.429(h) if the hotels were qualified hotel projects; and
(B)  tax revenue collected from all permittees
under Chapter 183 at hotels located in the zone, excluding revenue
disbursed by the comptroller under Section 183.051(b).
(3)  "Incremental hotel-associated revenue" means the
amount in any calendar year by which hotel-associated revenue,
including hotel-associated revenue from hotels built in the project
financing zone after the year in which a county designates the zone,
(4)  "Project financing zone" means an area within a
(A)  that the county by order designates as a
(B)  in which a qualified project is or will be
(C)  the designation of which expires not later
than the 30th anniversary of the date of designation.
(5)  "Qualified project" means a venue consisting of
multipurpose facilities to enhance hotel activity and encourage
tourism, and any related infrastructure, that is located on land
owned by a county or by the owner of the venue.
(6)  "Venue" and "related infrastructure" have the
meanings assigned by Section 334.001, Local Government Code.
(b)  This section applies only to a qualified project located
in a county described by Section 352.002(i).
(c)  In addition to the other uses provided by this chapter,
revenue from the county hotel occupancy tax may be used to fund a
(d)  A county may pledge for the payment of bonds or other
obligations issued or incurred to acquire, lease, construct,
improve, enlarge, and equip a qualified project:
(1)  the revenue derived from the tax imposed under
this chapter from a hotel located in the project financing zone;
(2)  the local revenue from eligible tax proceeds as
defined by Section 2303.5055(e), Government Code, from hotels
located in a project financing zone that would be available to the
owners of qualified hotel projects under that section if the hotels
were qualified hotel projects; and
(3)  the revenue the county is entitled to receive
(e)  A county shall notify the comptroller of the county's
designation of a project financing zone not later than the 30th day
after the date the county designates the zone.  Notwithstanding
other law, the county is entitled to receive the incremental
hotel-associated revenue from the project financing zone for the
period beginning on the first day of the year after the year in
which the county designates the zone and ending on the last day of
the month during which the designation expires.
(f)  The comptroller shall deposit incremental
hotel-associated revenue collected by or forwarded to the
comptroller in a separate suspense account to be held in trust for
the county that is entitled to receive the revenue.  The suspense
account is outside the state treasury, and the comptroller may make
a payment authorized by this section from the account without the
necessity of an appropriation.  The comptroller shall begin making
payments from the suspense account to the county for which the money
is held on the date the qualified project in the project financing
zone is commenced.  If the qualified project is not commenced by the
fifth anniversary of the first deposit to the account, the
comptroller shall transfer the money in the account to the general
revenue fund and cease making deposits to the account.
(g)  The comptroller may estimate the amount of incremental
hotel-associated revenue that will be deposited to a suspense
account under Subsection (f) during each calendar year.  The
comptroller may make deposits to the account and the county may
request disbursements from the account on a monthly basis based on
the estimate.  At the end of each calendar year, the comptroller
shall adjust the deposits and disbursements to reflect the amount
of revenue actually deposited to the account during the calendar
(h)  A county shall notify the comptroller if the qualified
project in the project financing zone is abandoned.  If the
qualified project is abandoned, the comptroller shall transfer to
the general revenue fund the amount of money in the suspense account
that exceeds the amount required for the payment of bonds or other
obligations described by Subsection (d).
SECTION 2.  This Act takes effect September 1, 2025.