S.B. No. 977
 
 
 
 
AN ACT
  relating to the imposition, use, rebate, and refund of certain
  taxes related to certain hotel business revenue.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2303.5055, Government Code, is amended
  by adding Subsection (f) to read as follows:
         (f)  Notwithstanding any other law, the comptroller shall
  deposit eligible taxable proceeds that were collected by or
  forwarded to the comptroller, and to which the qualified hotel
  project is entitled according to an agreement under this section,
  in trust in a separate suspense account of the project.  A suspense
  account is outside the state treasury, and the comptroller may make
  a rebate, refund, or payment authorized by this section without the
  necessity of an appropriation.  The comptroller shall rebate,
  refund, or pay to each qualified hotel project eligible taxable
  proceeds to which the project is entitled under this section at
  least quarterly.
         SECTION 2.  Subsection (h), Section 151.429, Tax Code, is
  amended to read as follows:
         (h)  Notwithstanding the other provisions of this section,
  the owner of a qualified hotel project shall receive a rebate,
  refund, or payment of 100 percent of the sales and use taxes paid or
  collected by the qualified hotel project or businesses located in
  the qualified hotel project pursuant to this chapter and 100
  percent of the hotel occupancy taxes paid by persons for the use or
  possession of or for the right to the use or possession of a room or
  space at the qualified hotel project pursuant to the provisions of
  Chapter 156 during the first 10 years after such qualified hotel
  project is open for initial occupancy.  The comptroller shall
  deposit the taxes in trust in a separate suspense account of the
  qualified hotel project.  A suspense account is outside the state
  treasury, and the comptroller may make a rebate, refund, or payment
  authorized by this section without the necessity of an
  appropriation.  The comptroller shall rebate, refund, or pay to
  each qualified hotel project eligible taxable proceeds to which the
  project is entitled under this section at least monthly.
         SECTION 3.  Subdivision (7), Section 351.001, Tax Code, is
  amended to read as follows:
               (7)  "Eligible central municipality" means:
                     (A)  a municipality with a population of more than
  140,000 but less than 1.5 million that is located in a county with a
  population of one million or more and that has adopted a capital
  improvement plan for the expansion of an existing convention center
  facility; or
                     (B)  a municipality with a population of 250,000
  or more that:
                           (i)  is located wholly or partly on a barrier
  island that borders the Gulf of Mexico;
                           (ii)  is located in a county with a
  population of 300,000 or more; and
                           (iii)  has adopted a capital improvement
  plan to expand an existing convention center facility.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 977 passed the Senate on
  April 21, 2011, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 17, 2011, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 977 passed the House, with
  amendment, on May 9, 2011, by the following vote: Yeas 130,
  Nays 12, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor