Event Trust Fund FAQs
Frequently Asked Questions
What events are eligible for funding?
- Athletic events and some other events held in Texas for which a site selecting organization of a nationally or internationally recognized organization chooses the Texas location over at least one possible site located outside the state. In some cases the Trust Funds apply only to certain cities and counties in Texas. (Home)
What do I need to be able to show to qualify?
- The local event organizing committee, the sponsoring municipality or county must be able to provide credible documentation from the event sanctioning organization that a site outside of Texas was considered in their decision-making. (Home)
How much funding can an event receive?
- Sporting or athletic events can generally receive 100% of the “incremental increase” in five taxes resulting from hosting the event. Non-sporting events can receive 50% of the gain in state sales taxes from the event. Depending upon the size of the event, past trust fund estimates have ranged from below $40,000 to more than $8 million. (Home)
So, all spending on an event counts as generating revenues into the trust fund for the event?
- As a practical matter, generally only those expenses by out-of-state visitors have been counted as representing an increase to the state but there are some exceptions. In addition, typically all direct expenditures on holding the event itself are considered as constituting an increase to the state along with expenditures by any event participants. Finally, the allowed expenditures must generate tax revenues under certain specified taxes. Not all state or local tax revenues connected to the event go into the trust fund. (Home)
When do the event sponsors or organizing committee receive this funding?
- The Texas Comptroller is authorized to deposit state tax revenues from the event only after the revenues have been collected and, in some cases, only to the extent that these deposits are matched by the deposit of local tax revenues (usually matched on the basis of $1 in local revenue for $6.25 in state revenue). The trust fund only reimburses the host community or organizing committee after the event has occurred. (Home)
How quickly can I expect to receive reimbursement after the event?
- Deposits by the state Comptroller are usually made into the fund fairly quickly—within 30 days after the event ends. (Home)
Does the host municipality or county need to contribute any tax revenues?
- Yes. For sporting events typically the local sponsoring municipality and county contribute tax revenues from the tax sources cited in the law on the basis of $1 for every $6.25 contributed by the state. (Home)
Who approves the trust fund?
- After considering information supplied by the sponsoring organization, for sporting events, ninety days before the event the Texas Comptroller issues an estimate of the amount of funds the state will contribute to the fund and the amount the local governments must contribute to generate the maximum state contribution to the fund. In a somewhat similar fashion, non-sporting events must receive the approval of the Comptroller six months before the event, and then seek the approval of the Governor, Lieutenant Governor and Speaker of the Texas House of Representatives. (Home)
What sort of expenses can be reimbursed from the fund?
- Sponsoring municipalities or counties can authorize the Texas Comptroller to reimburse expenses that are made for a public purpose in support of the special event, such as security, janitorial or maintenance services, public transportation, traffic management, rental of public facilities, paying utilities associated with the use of public facilities, or the preparation or maintenance of a contract associated with conducting the event (for example, a contract between the host community and the event sponsors). Sponsoring municipalities or counties can authorize the Comptroller to reimburse any expenses authorized in an event support contract. Event support contracts are made between the local sponsoring municipality or county and the site selection organization sanctioning the event. (Home)
So, only the host municipality or county can get reimbursed for expenses?
- Not necessarily. The host municipality or county may designate a local event organizing committee to submit expenses and receive reimbursement. Reimbursements may go to the sponsoring municipality or county or to other organizations for expenses incurred in hosting the event. Generally, reimbursable expenses not going to the sponsoring municipality or county are outlined in the event support contract, so proper drafting of that document is crucial. (Home)
Can the Event Trust Funds be used to construct or acquire facilities or equipment?
- Yes, in some cases. An endorsing municipality or county may authorize the issuance of notes of a seven-year or shorter duration to improve, construct, renovate or acquire facilities or acquire equipment with the notes being repaid from sporting events trust fund revenues. (Home)
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