The bill, H.B. No. 3182, 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 with a population of 47,000 or more that are located in two counties—one with a population of 2.1 million or more and the other with a population of 179,000 or more, and that are bisected by State Highway 174. Additionally, it modifies the existing criteria by deleting a previous provision regarding 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.

The bill aims to enhance the economic development potential of certain municipalities by allowing them to access tax revenues for projects that can stimulate tourism and local economies. The changes reflect a targeted approach to support municipalities that meet specific demographic and geographic criteria, thereby promoting growth in areas that may benefit from increased investment in hospitality and convention 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 351.157 (Tax Code 351)
House Committee Report: Tax Code 351.152 (Tax Code 351)