The bill, H.B. No. 1186, amends Section 351.157 of the Texas 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) that includes municipalities with a population of 130,000 or more, in addition to those already described in Subsection (b). This change aims to provide additional financial support to larger municipalities that meet the specified population criteria.

The bill is set to take effect immediately upon receiving a two-thirds vote from all elected members of both houses of the legislature. If it does not achieve this majority, the bill will take effect on September 1, 2025. This legislative change is intended to enhance the economic development opportunities for qualifying municipalities by allowing them to benefit from tax revenues associated with nearby establishments.

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