House Bill No. 2289 amends Section 351.152 of the Texas Tax Code to expand the list of municipalities eligible to utilize certain tax revenue derived from hotel and convention center projects. The bill introduces new criteria for eligibility, specifically adding a new category for municipalities that are the county seat of a county with a population of 60,000 or less that borders the Rio Grande and contains a United States military fort listed in the National Register of Historic Places. Additionally, it includes a new provision for municipalities through which the Comal River flows.

The bill also removes a previous provision that allowed municipalities with a population of 35,000 or more that contain a railroad museum and are located in a county with a population of 800,000 or more and adjacent to a county with a population of four million or more from the eligibility list. The changes aim to provide more municipalities with access to tax revenue for development projects, thereby promoting economic growth and tourism in these areas. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: Tax Code 351.152, Tax Code 351.157 (Tax Code 351)
House Committee Report: Tax Code 351.152 (Tax Code 351)
Engrossed: Tax Code 351.152 (Tax Code 351)