Relating to the entitlement of certain municipalities to receive and use tax revenue from certain establishments located near a hotel and convention center project.

Contracts

• Commercial Leases: Landlords within the capture zone will likely require lease amendments inserting "Cooperation Clauses." These compel tenants to share monthly sales tax return data with the landlord to verify rebates against Comptroller records.
• Triple Net (NNN) Provisions: Tenants must review leases to ensure they are not charged for Common Area Maintenance (CAM) or capital improvements that are already being subsidized by the state tax rebate.

Hiring/Training

• POS Segmentation: Staff must be trained to strictly segregate revenue streams in Point of Sale systems (e.g., alcohol vs. food vs. merchandise). These categories are subject to different tax capture buckets (Mixed Beverage vs. Sales Tax), and misclassification will trigger audits.

Reporting & Record-Keeping

• Address Validation: Businesses must verify their physical address is perfectly coded in the Texas Comptroller’s system. A minor address discrepancy will prevent tax capture, triggering an audit by the City or Developer.
• Audit Readiness: Retain daily sales summaries for four years. If project financing falls short, the Developer will audit zone businesses to identify uncaptured revenue.

Fees & Costs

• No New Fees: There is no increase in tax rates or licensure fees.
• Administrative Costs: Legal costs may be incurred for lease review; minor IT costs may be required to update POS tax categorization.