Last Friday, Texas Governor Greg Abbott signed House Bill 4347 into law, which directly benefits the City of Commerce.
As previously reported by the Commerce Journal, HB 4347 allows the city to reap the full amount of Hotel & Motel Tax revenues and almost all sales tax revenues on a “qualified hotel project,” and pledge those extra funds to infrastructure, bond payments and more.
If the city builds a convention center with a hotel attached, they will receive all hotel tax and 7.25-percent of sales tax revenues from that location, instead of giving a portion to the state.
Another similar bill had been written by Commerce City Manager Darrek Farrell and sponsored by Hunt County’s representative Dan Flynn, Representative for District 2. That bill stalled in committee though, and Commerce was added to HB 4347 and made it all the way to the Governor’s desk. On final reading it was passed 146-0 in the House after being passed 24-6 in the Senate. District 2 Senator Bob Hall was one of the senators to vote against the legislation.
Ferrell praised the efforts of Representative Flynn and other lawmakers in championing this legislation to benefit Commerce.
“We are grateful to Representative Dan Flynn, all of the authors, co-authors, and sponsors of HB 4347, and to Governor Abbott for completing legislation that brings significant incentives to Commerce and a few other communities for the development of a hotel and convention center,” Ferrell said in a written statement. “As a result of this new law, the City of Commerce is empowered to approach developers and to incentivize growth and development in our community in a way that likely would not happen otherwise. This legislation has the potential to be a catalyst for the future health of our local economy.”
The law goes into effect on Sept. 1.