§ 11-2-7. ALLOCATION AND USE OF HOTEL OCCUPANCY TAX REVENUE.

(A)

This section does not apply to taxes collected under Article 2 (Venue Projects).

(B)

The revenue derived from the tax authorized by this chapter may be used only as provided by Section 351.101 ( Use of Tax Revenue ) of the Texas Tax Code to promote tourism and the convention and hotel industry as follows:

(1)

64 2/7 percent of the funds collected is allocated to the Convention Center Capital Improvement Project Fund and may be used for:

(a)

the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities as defined in Section 351.001 ( Definitions ) of the Texas Tax Code;

(b)

the City's provision of facilities, personnel, and materials for the registration of convention delegates or registrants; and

(c)

marketing, selling, and servicing of convention services;

(2)

5 5/7 percent of the funds collected is allocated to the Tourism/Promotion Fund and may be used for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the City or its vicinity; and

(3)

15% of the funds collected is allocated to the Historic Preservation Fund and may be used for historical restoration and preservation projects or activities, or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums located at or in the immediate vicinity of convention center facilities or elsewhere in the City or its vicinity; and

(4)

the City Council has the authority in adopting the City's annual budget to change the allocation of the percentages of the hotel occupancy tax fund as set forth in subsections (2) and (3) of this Section, and if the Council does so, it shall not be a violation of this Section; and

(5)

15 percent of the funds collected is allocated to the Cultural Arts Fund and may be used for the encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of a major art form.

(C)

Revenue derived from the tax shall only be expended to directly enhance and promote tourism and the City's convention and hotel industry. Tax revenue may not be used as general revenue for general governmental operations of the City.

Source: 1992 Code Section 5-3-6; Ord. 031204-10; Ord. 031211-11; Ord. No. 20171214-005 , Pt. 2, 12-25-17.