Texas Legislative Update | Qualified Projects | Qualified Projects

Texas Legislative Update, 88th Legislature, Regular Session | Qualified Projects Under Texas Tax Code Chapter 351, Subchapter C

Summary: The Texas Legislature enacted four bills that 1) expand the list of cities that can build qualified projects (i.e., hotel and convention center projects subject to certain specifications) under Texas Tax Code Chapter 351, Subchapter C; 2) establish a claw back mechanism if state tax revenue generated by a qualified project does not meet certain metrics, 3) require a biennial report from the Texas Comptroller of Public Accounts regarding qualified projects, and 4) clarify that the provisions in Subchapter C do not provide any additional mechanism for taking property for public purposes or economic development.

Bills Enacted:

Background: Texas Tax Code Chapter 351, Subchapter C entitles certain cities to receive rebates of state taxes if the cities use their municipal hotel occupancy tax revenue in connection with a “qualified project.”^[1] (Note that Texas Tax Code Chapter 351 also envisions qualified projects that are not governed by Subchapter C. For the sake of clarity, I’ll refer to the projects in this post as Subchapter C qualified projects.)

A Subchapter C qualified project is a project to acquire, construct, repair, remodel, expand, or equip a qualified convention center facility, a qualified hotel, and/or certain restaurants bars, retail establishments, spas, and parking areas or structures within a certain proximity to the qualified convention center facility or qualified hotel.^[2]

A “qualified convention center facility” means a facility that:

is primarily used to host conventions or meetings;
is wholly owned by a municipality;
is connected to or has an exterior wall that is located not more than 1,000 feet from the nearest exterior wall of a qualified hotel;
is not located in a hotel, sports stadium, or other structure;
has at least 10,000 square feet of continuous meeting space; and
is configurable to simultaneously accommodate multiple events of different sizes and types.^[3]

A “qualified hotel” means a hotel that is designated by a qualifying city as the hotel that is part of a Subchapter C qualified project.^[4] A qualified hotel generally:

must be located on land owned by the designating municipality (there are exceptions discussed below); and
must be connected to a qualified convention center facility or have an exterior wall that is located not more than 1,000 feet from the nearest exterior wall of the qualified convention center facility.[5]

If a city pledges or commits a portion of its municipal hotel occupancy tax revenue collected by the qualified hotel for the payment of bonds and certain other obligations issued or incurred for the Subchapter C qualified project, the city generally will be entitled to receive certain state tax revenue derived from the project for a period of 10 years after the qualified hotel opens for initial occupancy.^[6] These state taxes include sales and use tax and hotel occupancy tax generated by the qualified hotel, and each restaurant, bar, and retail establishment located in or connected to the qualified hotel or qualified convention center facility.^[7] If a political subdivision that is entitled to receive tax revenue from the project agrees in writing, the city also is entitled to receive the sales and use tax imposed by political subdivision, the hotel occupancy tax imposed by the subdivision, and the mixed beverage tax to which the political subdivision is entitled.^[8]

A certain subset of cities also may be entitled to additional rebates from qualified establishments located within 1,000 feet from the nearest exterior wall of a qualified hotel or qualified convention center facility.^[9]

Prior to this legislative session the following cities were entitled to build a Subchapter C qualified project:

Corpus Christi^[10]
Nacogdoches^[11]
El Paso^[12]
Arlington^[13]
San Antonio^[14]
Grand Prairie^[15]
Irving^[16]
Amarillo^[17]
Tyler^[18]
Round Rock^[19]
Odessa^[20]
Abilene and Midland^[21]
Prosper^[22]
Lubbock^[23]
Frisco and Lewisville^[24]
Cedar Hill^[25]
Roanoke^[26]
Rowlett^[27]
League City^[28]
Kemah^[29]
Sugar Land^[30]
Katy^[31]
Port Aransas^[32]
Pearland^[33]
Seabrook^[34]
Alvin^[35]
Baytown^[36]
Webster^[37]
Fredericksburg^[38]
Hutto^[39]
Cedar Park^[40]
Kerrville^[41]
Conroe^[42]
San Benito^[43]
Weatherford^[44]
Richmond^[45]
Commerce^[46]
Celina^[47]
Rio Grande City^[48]
Presidio^[49]
The Colony^[50]
Kyle^[51]
Victoria^[52]
Leander^[53]
Missouri City^[54]

(Note that Texas Constitution Article III, Section 56 (Prohibited Local and Special Laws) generally prohibits the enactment of local or special laws to the extent that a general law can be used. Thus, the cities above and those listed in the description of legislative changes below are not mentioned by name in the statute. Instead, they are identified by what are called “brackets.” In this context, a “bracket” is a general description that in theory can apply to any number of cities but really only applies to one or maybe two cities. I’ve included the brackets in the footnotes. Check them out for some Texas trivia and/or to get sense of how confusing they can be. I’ve relied on the fiscal notes from the Legislative Budget Board to identify these cities. Please be aware that I’ve not been able to independently verify all the brackets, so some may be misidentified.)

Legislative Changes: The biggest changes in the area of Subchapter C qualified projects this session was the addition of more cities to the list that can build such projects and creating a mechanism for the Texas Comptroller to claw back state tax rebates if these projects fail to meet certain tax revenue goals.

HB 5012 expands the list of cities eligible to build Subchapter C qualified project to include:

Allen^[55]
Brownsville^[56]
Seguin^[57]
Mansfield^[58]
Beaumont^[59]
Bastrop^[60]
Waco^[61]
Little Elm^[62]
Denton^[63]
Grapevine^[64]
Mesquite^[65]
Terrell^[66]
McKinney^[67]
Kauffman^[68]
Temple^[69]
Austin^[70]
Carthage^[71]
Rosenberg^[72]
Eagle Pass^[73]

HB 5012 also adds Texas Tax Code, Section 351.161, which requires the Comptroller to recapture state tax revenue rebated to cities that build Subchapter C qualified projects if, after twenty years of a project’s operation, the state tax rebates paid by the Comptroller to the city during the first ten years of operation (i.e., the period that cities building such projects generally are entitled to receive such rebates) exceeds the state tax revenue generated by the project during the second ten years of operation.^[74] This claw back provision only applies to Subchapter C qualified projects that are commenced on or after January 1, 2024, or January 1, 2027, if the project was authorized before January 1, 2023, by a municipality with a population of 175,000 or more.^[75] The claw back provision does not apply to a Subchapter C qualified project that is the subject of an economic development agreement under Local Government Code Chapter 380 that was entered into on or before January 1, 2022.^[76]

SB 627 applies primarily to San Antonio. The bill adds San Antonio to the list of cities that do not have to wholly own a qualified convention center facility or own the land on which qualified hotel is located in order to have Subchapter C qualified project (currently, only Grand Prairie and Fredericksburg qualify for this exception)^[77] The bill also adds San Antonio to the list of cities that may be entitled to additional rebates from qualified establishments and provides that nonprofit corporation can own the land on which the qualified establishments are located.^[78] Finally, SB 627 includes a claw provision substantially similar to the one found in HB 5102, except that it has not limitations on which cities are covered by the provision.^[79]

In connection with Subchapter C qualified projects, HB 3727 adds Waco to the list of cities that can build such a project (HB 5012 also added Waco) and includes a claw back provision substantially similar to the one found in HB 5102.^[80] The bill also adds a provision to Subchapter C clarifying that the subchapter does not authorize the taxing of private property for economic development purposes in a manner inconsistent with the requirements of Texas Constitution Article I, Section 17 (Taking of Property for Public Use; Special Privileges and Immunities; Control of Privileges and Franchises) or Government Code Section 2206.001 (Limitation on Eminent Domain for Private Parties or Economic Development Purposes).^[81] Finally, HB 3727 requires the Comptroller to prepare a biennial report on the status of each qualified project.^[82]

SB 1420 has substantially the same provisions with respect to takings, claw back, and a biennial report as HB 3727.^[83]

State and Local Tax Services

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[1] See Tex. Tax Code §§ 351.152 (Applicability), 351.155 (Pledge of Commitment of Certain Tax Revenue for Qualified Project), 351.156 (Entitlement to Certain Tax Revenue), 351.157 (Additional Entitlement for Certain Municipalities).

[2] Id. § 351.151(4) (Definitions).

[3] Id. § 351.151(2).

[4] Id. § 351.151(3).

[5] Id.

[6] Id. §§ 351.155(e), 351.158 (Period of Entitlement).

[7] Tex. Tax Code §§ 351.156.

[8] See Id. §§ 183.051 (Mixed Beverage Tax Clearance Fund), 351.156(3).

[9] Id. § 351.157.

[10] “[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

has adopted a capital improvement plan to expand an existing convention center facility . . . .”

See Tex. Tax Code §§ 351.001(7)(B), 351.152(1); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[11] “[A] municipality with a population of less than 50,000 that contains a general academic teaching institution that is not a component institution of a university system . . . .” See Tex. Tax Code §§ 351.001(7)(D), 351.152(2); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[12] “[A] municipality with a population of 640,000 or more that:

(i) is located on an international border; and

(ii) has adopted a capital improvement plan for the construction or expansion of a convention center facility.”

See Tex. Tax Code §§ 351.001(7)(E), 351.152(3); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[13] “[A] municipality with a population of 350,000 or more but less than 450,000 in which two professional sports stadiums are located, each of which:

(A) has a seating capacity of at least 40,000 people; and

(B) was approved by the voters of the municipality as a sports and community venue project under Chapter 334, Local Government Code . . . .”

See Tex. Tax Code §§ 351.102(e)(3), 351.152(4); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[14] “[A] municipality that contains more than 75 percent of the population of a county with a population of 1.5 million or more . . . .” See Tex. Tax Code § 351.152(5) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[15] “[A] municipality with a population of 175,000 or more but less than 200,000 that is partially located in at least one county with a population of 125,000 or more . . . .” See Tex. Tax Code § 351.152(6) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[16] “[A] municipality with a population of 250,000 or more but less than one million that is located in one county with a population of 2.5 million or more . . . .” See Tex. Tax Code § 351.152(7) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[17] “[A] municipality with a population of 180,000 or more that:

(A) is located in two counties, each with a population of 100,000 or more; and

(B) contains an American Quarter Horse Hall of Fame and Museum . . . .”

See Tex. Tax Code § 351.152(8); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[18] “[A] municipality with a population of 96,000 or more that is located in a county that borders Lake Palestine . . . .” See Tex. Tax Code § 351.152(9); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[19] “[A] municipality with a population of 96,000 or more that is located in a county that contains the headwaters of the San Gabriel River . . . .” See Tex. Tax Code § 351.152(10); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[20] “[A] municipality with a population of at least 95,000 000 that is located in a county that is bisected by United States Highway 385 and has a population of 170,000 or more . . . .” See Tex. Tax Code § 351.152(11) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[21] “[A] municipality with a population of 110,000 or more but less than 135,000 at least part of which is located in a county with a population of less than 135,000 . . . .” See Tex. Tax Code § 351.152(12); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[22] “[A] municipality with a population of 28,000 or more but less than 31,000 that is located in two counties, each of which has a population of 900,000 or more and a southern border with a county with a population of 2.5 million or more . . . .” See Tex. Tax Code § 351.152(13) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[23] “[A] municipality with a population of 200,000 or more but less than 300,000 that contains a component institution of the Texas Tech University System . . . .” See Tex. Tax Code § 351.152(14); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[24] “[A] municipality with a population of 95,000 or more that:

(A) is located in more than one county; and

(B) borders Lake Lewisville . . . .”

See Tex. Tax Code § 351.152(15); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[25] “[A] municipality with a population of 45,000 or more that:

(A) contains a portion of Cedar Hill State Park;

(B) is located in two counties, one of which has a population of 2.5 million or more and one of which has a population of 190,000 or more; and

See Tex. Tax Code § 351.152(16) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[26] “[A] municipality with a population of less than 10,000 that:

(A) is almost wholly located in a county with a population of 900,000 or more that is adjacent to a county with a population of 2.5 million or more;

(B) is partially located in a county with a population of 2.1 million or more that is adjacent to a county with a population of 2.5 million or more;

(D) has a waterpark open to the public . . . .”

See Tex. Tax Code § 351.152(17) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[27] “[A] municipality with a population of 60,000 or more that:

(A) borders Lake Ray Hubbard; and

(B) is located in two counties, one of which has a population of less than 110,000 . . . .”

See Tex. Tax Code § 351.152(18) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[28] “[A] municipality with a population of 60,000 or more that:

(A) borders Clear Lake; and

(B) is primarily located in a county with a population of less than 355,000 . . . .”

See Tex. Tax Code § 351.152(19) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[29] “[A] municipality with a population of less than 2,000 that:

(A) is located adjacent to a bay connected to the Gulf of Mexico;

(B) is located in a county with a population of 290,000 or more that is adjacent to a county with a population of four million or more; and

See Tex. Tax Code § 351.152(20); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[30] “[A] municipality with a population of 75,000 or more that:

(A) is located wholly in one county with a population of 800,000 or more that is adjacent to a county with a population of four million or more; and

(B) has adopted a capital improvement plan for the construction or expansion of a convention center facility . . . .”

See Tex. Tax Code § 351.152(21) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[31] “[A] municipality with a population of less than 70,000 that is located in three counties, at least one of which has a population of four million or more . . . .” See Tex. Tax Code § 351.152(22) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[32] “[A]n eligible coastal municipality with a population of 2,9000 or more but less than 5,000 . . . .” See Tex. Tax Code §§ 351.152(23) (as amended by HB 5012, 88th Leg., R.S. (2023)), 351.001(3) (defining “eligible coastal municipality” as “a home-rule municipality that borders on the Gulf of Mexico and has a population of less than 80,000”); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[33] “[A] municipality with a population of 90,000 or more but less than 150,000 that:

(A) is located in three counties; and

(B) contains a branch campus of a component institution of the University of Houston System . . . .”

See Tex. Tax Code § 351.152(24); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[34] “[A] municipality that is:

(A) primarily located in a county with a population of four million or more; and

(B) connected by a bridge to [Kemah] . . . .”

See Tex. Tax Code § 351.152(25); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[35] “[A] municipality with a population of 25,000 or more but less than 30,000 that:

(A) contains a portion of Mustang Bayou; and

(B) is wholly located in a county with a population of less than 500,000 . . . .”

See Tex. Tax Code § 351.152(26) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[36] “[A] municipality with a population of 70,000 or more but less than 90,000 that is located in two counties, one of which has a population of four million or more and the other of which has a population of less than 50,000 . . . .” See Tex. Tax Code § 351.152(27); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[37] “[A] municipality with a population of 10,000 or more that:

(A) is wholly located in a county with a population of four million or more; and

(B) has a city hall located less than three miles from a space center operated by an agency of the federal government . . . .”

See Tex. Tax Code § 351.152(28); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[38] “[A] municipality that is the county seat of a county:

(A) through which the Pedernales River flows; and

(B) in which the birthplace of a president of the United States is located . . . .”

See Tex. Tax Code § 351.152(29); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[39] “[A] municipality that contains a portion of U.S. Highway 79 and State Highway 130 . . . .” See Tex. Tax Code § 351.152(30); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[40] “[A] municipality with a population of 70,000 or more but less than 115,000 that is located in two counties, one of which has a population of 1.1 million or more but less than 1.9 million . . . .” See Tex. Tax Code § 351.152(31) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[41] “[A] municipality with a population of less than 25,000 that contains a museum of Western American art . . . .” See Tex. Tax Code § 351.152(32); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[42] “[A] municipality with a population of 50,000 or more that is the county seat of a county that contains a portion of the Sam Houston National Forest . . . .” See Tex. Tax Code § 351.152(33); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[43] “[A] municipality with a population of less than 25,000 that:

(A) contains a cultural heritage museum; and

(B) is located in a county that borders the United Mexican States and the Gulf of Mexico . . . .”

See Tex. Tax Code § 351.152(34); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[44] “[A] municipality that is the county seat of a county that:

(A) has a population of 115,000 or more;

(B) is adjacent to a county with a population of 2.1 million or more; and

See Tex. Tax Code § 351.152(35) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[45] “[A] municipality that is the county seat of a county that:

(A) has a population of 800,000 or more; and

(B) is adjacent to a county with a population of four million or more . . . .”

See Tex. Tax Code § 351.152(36); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[46] “[A] municipality with a population of less than 10,000 that:

(A) contains a component university of The Texas A&M University System; and

(B) is located in a county adjacent to a county that borders Oklahoma . . . .”

See Tex. Tax Code § 351.152(37); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[47] “[A] municipality with a population of less than 17,000 that:

(A) is located in two counties, each of which has a population of 900,000 or more but less than two million; and

(B) hosts an annual Cajun Festival . . . .”

See Tex. Tax Code § 351.152(38) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[48] “[A] municipality with a population of 13,000 or more that:

(A) is located on an international border; and

(B) is located in a county:

(i) with a population of less than 400,000; and

(ii) in which at least one World Birding Center site is located . . . .”

See Tex. Tax Code § 351.152(39); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[49] “[A] municipality with a population of 3,200 or more that:

(A) is located on an international border; and

(B) is located not more than five miles from a state historic site that serves as a visitor center for a state park that contains 300,000 or more acres of land . . . .”

See Tex. Tax Code § 351.152(40); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[50] “[A] municipality with a population of 36,000 or more that is adjacent to at least two municipalities [with a population of 95,000 or more that are located in more than one county and that border Lake Lewisville] . . . .” See Tex. Tax Code § 351.152(41); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[51] “[A] municipality with a population of 28,000 or more that is located in a county with a population of 240,000 or more that contains a portion of the Blanco River and in which is located a historic railroad depot and heritage center . . . .” See Tex. Tax Code § 351.152(42) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4347, 86th Leg., R.S. (May 21, 2019).

[52] “[A] municipality located in a county that has a population of not more than 300,000 and in which a component university of the University of Houston System is located . . . .” See Tex. Tax Code § 351.152(43); Legislative Budget Board, Fiscal Note for HB 4103, 87th Leg., R.S. (May 27, 2021).

[53] “[A] municipality with a population of less than 500,000 that is:

(A) located in two counties; and

(B) adjacent to [Cedar Park] . . . .”

See Tex. Tax Code § 351.152(44); Legislative Budget Board, Fiscal Note for HB 4103, 87th Leg., R.S. (May 27, 2021).

[54] “[A]municipality that:

(A) has a population of more than 67,000; and

(B) is located in two counties with 90 percent of the municipality’s territory located in a county with a population of at least 800,000, and the remaining territory located in a county with a population of at least four million.”

See Tex. Tax Code § 351.152(45) (as amended by HB 5012, 88th Leg., R.S. (2023)); Legislative Budget Board, Fiscal Note for HB 4103, 87th Leg., R.S. (May 27, 2021).

[55] “[A] a municipality that:

has a population of 100,000 or more; and
is wholly located in, but is not the county seat of, a county with a population of one million or more:
in which all or part of a municipality

with a population of one million or more is located; and

that is adjacent to a county with a

population of 2.5 million or more . . . .”

See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(46)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[56] “[A] municipality that is the county seat of a county bordering the Gulf of Mexico and the United Mexican States . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(47)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[57] “[A] municipality that is bisected by the Guadalupe River and is the county seat of a county with a population of

170,000 or more . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(48)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[58] “[A] municipality with a population of 70,000 or more but less than 150,000 that borders Joe Pool Lake . . . .“ See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(49)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[59] “[A] municipality with a population of 115,000 or more that borders the Neches River . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(50)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[60] “[A] municipality described by Section 351.101(k) . . . .” Texas Tax Code Section 351.101(k) describes “a municipality that is intersected by both State Highways 71 and 95 . . . .”

See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(51)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[61] “[A] municipality that is the county seat of a county:

through which the Brazos River flows; and
in which a national monument is located . . . .”

See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(52)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[62] “[A] municipality with a population of 45,000 or more that:

is not the county seat of a county;
is located in a single county; and
contains a portion of Lake Lewisville . . . .”

See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(53)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[63] “[A] municipality that is the county seat of a county with a population of more than 900,000 that is adjacent to two counties, each of which has a population of more than 1.8 million . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(54)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[64] “[A] municipality that hosts an annual wine festival and is located in three counties, each of which has a population of more than 900,000 . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(55)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[65] “[A] municipality that has a population of at least 150,000 but less than 1,300,000 and is partially located in a county that contains a portion of Cedar Creek Reservoir . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(56)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[66] “[A] municipality that is located in a county that contains a portion of Cedar Creek Reservoir and in which a private college is located . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(57));

Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[67] “[A] municipality that is the county seat of a county:

with a population of one million or more;
in which all or part of a municipality with a population of one million or more is located; and
that is located adjacent to a county with a population of 2.5 million or more . . . .”

See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(58)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[68] “[A] municipality that is the county seat of a county that contains a portion of Cedar Creek Reservoir and borders a county with a population of more than 240,000 . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(59)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[69] “[A] municipality with a population of more than 80,000 but less than 150,000 that is located in a county with a population of more than 369,000 but less than 864,000 that contains part of an active duty United States Army installation . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(60)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[70] “[A] municipality with a population of 750,000 or more that is located in a county with a population of 1.5 million or less . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(61)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[71] “[A] municipality with a population of less than 7,000 that contains a country music hall of fame . . . .” See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(62)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[72] “[A] municipality with a population of 35,000 or more that contains a railroad museum and is located in a county that:

has a population of 800,000 or more; and
is adjacent to a county with a population of four million or more . . . .”

See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(63)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[73] “[A] municipality:

(A) that is the county seat of a county:

(i) with a population of 60,000 or less; and

(ii) that borders the Rio Grande; and

in which is located a United States military for listed in the National Register of Historic Places.”

See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.152(64)); Legislative Budget Board, Fiscal Note for HB 5012, 88th Leg., R.S. (May 25, 2023).

[74] See HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.161).

[75] Id.

[76] Id.

[77] See SB 627, 88th Leg., R.S. (2023) (amending Tex. Tax Code § 351.153)); Tex. Tax Code §§ 351.151(2)(B), (3)(A), 351.152(6), (29).

[78] SB 627, 88th Leg., R.S. (2023) (amending Tex. Tax Code § 351.157).

[79] See SB 627, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.161); HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code § 351.161).

[80] See HB 3727, 88th Leg., R.S. (2023) (adding Tex. Tax Code §§ 351.152(46) and 351.162); HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code §§ 351.152(52), 351.161).

[81] HB 3727, 88th Leg., R.S. (2023) (adding Tex. Tax Code §§ 351.161).

[82] HB 3727, 88th Leg., R.S. (2023) (adding Tex. Tax Code §§ 351.163).

[83] See HB 3727, 88th Leg., R.S. (2023) (adding Tex. Tax Code §§ 351.161, 351.162, an 351.163); HB 5012, 88th Leg., R.S. (2023) (adding Tex. Tax Code §§ 351.161, 351.162, an 351.163).

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TL Fahring

Attorney