The bill amends the Texas Tax Code to extend the period during which certain municipalities can receive tax revenue associated with hotel and convention center projects. Specifically, it establishes that municipalities described by Section 351.152(46) are entitled to receive revenue for up to 20 years from the date a qualified hotel opens for initial occupancy, as opposed to the previous limit of 10 years. This change is reflected in the new legal language added to Section 351.158, which outlines the entitlement period for municipalities.

Additionally, the bill modifies Section 351.162 by introducing a new subsection (b-1) that requires the comptroller to determine the total state tax revenue received by municipalities and the state on the 40th anniversary of a qualified hotel’s opening. This is in addition to the existing requirement for a determination on the 20th anniversary. The bill also stipulates that if the revenue received by the municipality exceeds that received by the state, the municipality must remit the difference to the comptroller. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Tax Code 351.158, Tax Code 351.162 (Tax Code 351)
House Committee Report: Tax Code 351.158, Tax Code 351.162 (Tax Code 351)
Engrossed: Tax Code 351.158, Tax Code 351.162 (Tax Code 351)