AG OPINION REQUEST REGARDING VENUE PROJECT FINANCING
Attorney General Opinion Request RQ-618GA asks whether county venue project sales taxes under Chapter 334 of the Local Government Code may be used to pay off a loan. There is no reason to believe that the opinion wouldn't apply to city venue taxes as well. Section 334.082(c) of the Local Government Code seems to answer the question for cities by saying that the Tax Code prohibition against pledging sales taxes to the repayment of debt does not apply to venue sales taxes. Nevertheless, cities that have used, or plan to use, venue sales taxes to build facilities using debt (typically large cities) may wish to file comments on the opinion request.
The request can be viewed here: http://www.oag.state.tx.us/opinions/requests_ga/RQ0618GA.pdf
Comments are due by October 15th.