Certain municipalities must repay specified hotel tax revenue to the comptroller after notice, using monthly payments until the stated amount is paid.
Sec. 351.1621. RECAPTURE OF LOST STATE TAX REVENUE FROM CERTAIN MUNICIPALITIES. (a) This section applies only to a municipality described by Section 351.152(5). (b) On the 20th anniversary of the date a hotel designated as a qualified hotel by a municipality to which this section applies is open for initial occupancy, the comptroller shall determine: (1) the total amount of state tax revenue received under Sections 351.156 and 351.157 by the municipality from the qualified project of which the qualified hotel was a part during the period for which the municipality was entitled to receive that revenue; and (2) the total amount of state tax revenue described by Sections 351.156 and 351.157 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 revenue under Section 351.156 or 351.157. (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. 1030 (S.B. 627), Sec. 3, eff. June 18, 2023. Redesignated from Tax Code, Section 351.161 by Acts 2025, 89th Leg., R.S., Ch. 204 (H.B. 1620), Sec. 22.001(37), eff. September 1, 2025.