H.B. No. 1039 proposes to amend the use of hotel occupancy tax revenue by certain municipalities in Texas. The bill repeals Section 351.1035 of the Tax Code, which indicates a significant change in how municipalities may utilize this revenue. The new provisions will only apply to revenue collected on or after the effective date of the Act, ensuring that any revenue collected prior will still be governed by the previous law.

The Act is designed to take effect immediately if it secures a two-thirds majority vote from all elected members in both houses of the legislature. If it does not achieve this majority, the Act will come into effect on September 1, 2025. This timeline allows for a transition period for municipalities to adapt to the new regulations regarding hotel occupancy tax revenue.

Statutes affected:
Introduced: Tax Code 351.1035 (Tax Code 351)