The bill, H.B. No. 3117, amends the Texas Tax Code to expand the authority of certain municipalities to utilize specific tax revenues for hotel and convention center projects. The amendments include the addition of new qualifying criteria for municipalities, specifically inserting provisions 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, a new category is added for municipalities with a population of 7,000 or more that contain Lake Marble Falls.

Furthermore, the bill modifies the applicability of Section 351.153(a) by including the newly added municipality categories in the list of those eligible for the specified tax revenue use. The bill aims to enhance the economic development potential of these municipalities by allowing them to invest in tourism-related infrastructure. 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 351.153 (Tax Code 351)