This month: $53 million has been authorized for event trust funds since 2003
Economic Development and Analysis
Region 5 – Ron Gipson
Ron Gipson is the Comptroller’s representative for the 23 counties in the Upper East Texas region and also serves as an Economic Development analyst. He has extensive experience in the public and private sectors. Ron spent 10 years with the U.S. Small Business Administration, where he conducted business audits of more than 500 small businesses. He also has a business background spending five years as owner/operator of a Burger King franchise in the Houston area.
The 23-county Upper East Texas region stretches from the Piney Woods bordering Oklahoma, Arkansas and Louisiana to the energetic eastern fringe of the Dallas-Fort Worth Metroplex. Ron and the other local government specialists can offer technical assistance about a wide variety of programs to foster economic development, including property tax abatements, appraised value limitations for school districts and sales tax for economic development. Find out more at TexasAhead.org
The Comptroller’s Economic Development and Analysis division also serves as the state’s portal to information on federal stimulus funds, including energy conservation grants for local governments to retrofit public buildings and reduce energy costs.
Partnering for Impact
State, communities win when the big events come to Texas
Bringing a Super Bowl, All-Star Game, NCAA Final Four or other major sporting event can be a big revenue generator for a community. Tens of thousands of fans and media descend, spending generously in their host community and benefiting businesses and local tax rolls.
But hosting events comes with a big price tag, too. Texas communities have an incentive to invest in events and recoup their outlay later with reimbursements from one of the state’s event trust funds. The 2003 Legislature authorized the first event trust fund to attract sporting events. In 2009, the Legislature broadened eligibility to include non-athletic events and eliminated population criteria for city and county participation.
How does an event qualify for a trust fund?
Texas cities or counties can apply to establish an event trust fund. The community must document the event was competitively bid and could have been awarded to another state or country. It also must be conducted no more than once per year and must be unique in the state or Texas region.
How is the trust fund revenue collected?
Trust fund revenue is sourced from the estimated gains in sales tax, hotel occupancy tax, motor vehicle rental tax and alcoholic beverage tax generated by the event. The state’s share of the estimated tax gains are matched by the local partnering entity or entities depositing funds equal to 16 percent of the state’s payment to the trust fund. In total, $53 million funding was approved for event trust funds from fiscal 2004 through fiscal 2009. State tax receipts contributed $46.9 million; $6.1 million came from local entities.
How are event trust funds paid out?
An eligible community or its designated beneficiary submits invoices or other documentation of allowed spending to the state Comptroller for review and reimbursement from the trust fund. Money left over in the event trust fund is repaid to the State Treasury and local entities proportionate to the original deposits. TR
Find out if your community might qualify for an event trust fund by calling LGA Specialist Andy Liebler at (800) 531-5441 ext. 3-4679.
Texas Attracts the Big Events
The number of event trust fund requests approved annually has grown substantially since the program began in 2004.
|Fiscal Year||Number of Events||Sample Event|
|2004||3||Super Bowl - Houston|
|2006||2||NBA All Star Game - Houston|
|2007||7||Houston Grand Prix|
|2008||6||NCAA Final Four - San Antonio|
|2009||23||NCAA Women’s Soccer Championships - College Station|
|2010*||30||NBA All Star Game - Dallas|
*Source As of January 1, 2010: Texas Comptroller of Public Accounts