The bill, H.B. No. 2289, amends the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects. It specifically updates Section 351.152 to include new criteria for municipalities eligible to receive such tax revenue. Notably, it adds 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 U.S. military fort listed in the National Register of Historic Places. Additionally, it introduces a new category for municipalities through which the Comal River flows, thereby broadening the scope of municipalities that can benefit from these provisions.

Furthermore, the bill modifies Section 351.157(b) to include the newly added municipalities in the list of those eligible for certain tax revenue benefits. This change aims to enhance the financial resources available to these municipalities for the development and expansion of convention center facilities, thereby promoting tourism and economic growth in the regions affected. The bill 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)