Event Trust Funds Overview
Texas’ event trust fund programs help its communities offset the costs of hosting sporting and non-athletic events. To qualify for these funds, an event must be competitively bid, and the community must be competing with cities outside Texas for the right to host it.
Eligible events should draw out-of-state visitors, since the money they spend during their stays increases tax revenues for the state and local governments.
Generally, the state’s contribution is capped at the amount of state revenue the Comptroller estimates will be generated by the event, in the form of increased receipts from sales, hotel occupancy, motor vehicle rental, mixed beverage and alcoholic beverage taxes. (One exception is noted below.)
A local government seeking event trust funds must bear some of the cost of hosting the event. The local contribution must match the state’s, at a rate of $1 of local funds for every $6.25 in state funds. If the local government submits less than the full matching amount, state funds are reduced proportionally.
After the event is held, a local government must submit a request for payment from the trust fund for event-related expenditures to the Comptroller’s office. The total payment through a trust fund for any event cannot exceed the amount of funding contributed into a trust fund for that event.
Fund Programs and Event Types at a Glance
The state has four separate event trust fund programs, each designed to support different types of events. They are:
- Major national or international championship type events, such as the NFL Super Bowl, NCAA Final Four Tournaments and Formula One automobile races. Local match is required.
- Once a year sporting event or convention such as the Major League Soccer All Star Game or American Public Transportation Association convention. Local match is required.
- Limited to automobile racing events sanctioned by the Automobile Competition Committee for the U.S. and held at a temporary venue. Local match is required.
- 50% payout on state sales tax gain only. NO local match is required.