The bill, H.B. No. 2974, seeks to expand the authority of certain municipalities in Texas to utilize specific tax revenues for hotel and convention center projects. It amends Section 351.155(d) of the Tax Code to exempt municipalities with populations of 175,000 or more, as well as those with populations of 130,000 or more that meet the criteria outlined in Section 351.152(12), from the restrictions of Subsection (c). This change allows these municipalities greater flexibility in funding such projects.

Additionally, the bill introduces a new Subsection (b-1) to Section 351.157, which extends the applicability of this section to municipalities described in the newly amended Section 351.155(d)(2). The bill is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Tax Code 351.155, Tax Code 351.157 (Tax Code 351)