Texas Tax Code - TAX § 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:

(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.