The bill amends Section 351.152 of the Texas Tax Code to expand the list of municipalities eligible to use certain tax revenue derived from hotel and convention center projects. Notably, it introduces 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, the bill removes 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 utilize tax revenue for projects that can attract tourism and business. 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 or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: Tax Code 351.152, Tax Code 351.157 (Tax Code 351)
House Committee Report: Tax Code 351.152 (Tax Code 351)