Nonconstituent municipalities must pay two-thirds of their excess airport revenue to the constituent agencies by December 31 each year, and they must keep an independent auditor to verify that revenue. Constituent agencies may audit the municipality's records once each calendar year and must reimburse part of the verification cost.
Sec. 22.089. AIRPORT REVENUE OF NONCONSTITUENT MUNICIPALITIES. (a) In this section: (1) "Airport revenue" means revenue that is not already pledged or dedicated for another purpose and is received by a nonconstituent municipality from: (A) maintenance and operations ad valorem taxes imposed on real and personal property located within a revenue sharing area by the municipality; (B) the sales and use tax imposed by the municipality under Chapter 321, Tax Code, derived only from the sale or use of taxable items in the revenue sharing area; (C) franchise fees, right-of-way fees, and other compensation paid to the municipality by a utility for the use of the public right-of-way or other public property located within the revenue sharing area; (D) money collected by the municipal court, including fines, fees, and court costs derived only from convictions for offenses that occur in the revenue sharing area; (E) the mixed beverage taxes received by the municipality under Section 183.051, Tax Code, derived only from the sale, preparation, or service of a taxable item in the revenue sharing area; (F) all other taxes attributable to the revenue sharing area and deposited to the credit of the municipality's general fund; and (G) as agreed by the joint board and the nonconstituent municipality, from commercial development in an area of the municipality within the boundaries of the airport that is not a revenue sharing area. (2) "Excess airport revenue" means that amount of airport revenue received by a nonconstituent municipality in the municipality's fiscal year that exceeds the amount of airport revenue of the municipality in the later of: (A) the municipality's fiscal year 2000; or (B) the first fiscal year of the municipality in which the airport is fully operational. (3) "Nonconstituent municipality" means a municipality: (A) that has territory within the boundaries of an airport that is governed by a joint board for which the constituent agencies are populous home-rule municipalities; and (B) that has not entered into an agreement under Section 22.0781 with the joint board. (4) "Revenue sharing area" means the area of a nonconstituent municipality located within the boundaries of the airport that is not separated from the airport passenger terminal buildings by a controlled access highway, as defined by Section 203.001, that runs through the municipality. (b) Not later than December 31 of each year, each nonconstituent municipality shall pay to the constituent agencies an amount equal to two-thirds of the nonconstituent municipality's excess airport revenues for the preceding fiscal year. The constituent agencies shall divide the payment according to their respective ownership interests in the airport to which the revenue was attributable. (c) Each year, as part of its annual audit, each nonconstituent municipality shall retain an independent auditor to verify the nonconstituent municipality's excess airport revenue. The constituent agencies shall reimburse each nonconstituent municipality for two-thirds of the cost of the verification. The portion of the reimbursement to be paid by each constituent agency shall be based on the respective ownership interests in the airport to which the increased revenues were attributable. Once each calendar year, each constituent agency may audit a nonconstituent municipality's records relating to the excess airport revenue at the sole expense of the constituent agency. (d) Each nonconstituent municipality shall determine the amount of the municipality's airport revenue according to available statistical data indicating the estimated or actual total revenue attributable to that portion of the municipality that lies within the boundaries of the airport. Added by Acts 2001, 77th Leg., ch. 352, Sec. 3, eff. Sept. 1, 2001.