The bill, H.B. No. 1186, amends the Tax Code to expand the eligibility of certain municipalities to receive tax revenue from establishments located near hotel and convention center projects. Specifically, it adds a new subsection (b-1) to Section 351.157, which allows municipalities with a population of 130,000 or more, as defined in Section 351.152(12), to qualify for these tax revenues in addition to those already specified in Subsection (b).

The bill is designed to provide financial benefits to larger municipalities that meet the population criteria, thereby potentially enhancing their economic development efforts related to tourism and convention activities. The act will take effect immediately upon receiving a two-thirds majority vote from both houses of the legislature; otherwise, it will become effective on September 1, 2025.

Statutes affected:
Introduced: Tax Code 351.157 (Tax Code 351)
House Committee Report: Tax Code 351.157 (Tax Code 351)