The bill, H.B. 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 amendment 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 for eligibility based on certain criteria, streamlining the requirements for municipalities seeking to access these tax revenues. The changes aim to enhance the ability of specific municipalities to fund and support hotel and convention center projects, thereby promoting local economic development and tourism. The act is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature or on September 1, 2025, if such a vote is not achieved.

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)