H.B. No. 3196 amends the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects. The bill introduces a new category of municipalities eligible for these benefits, specifically adding (3-a) a municipality described by Section 351.001(11); to the list of qualifying municipalities. Additionally, it establishes exceptions for eligible barrier island coastal municipalities, allowing them to bypass certain requirements related to the proximity of convention centers and hotels to natural impediments, such as open water or protected wetlands. The bill also modifies existing provisions by deleting specific requirements that would typically apply to qualified convention center facilities and hotels, thereby facilitating the development of these projects in municipalities that meet the new criteria. The changes aim to enhance the ability of municipalities to leverage tax revenue for local development and tourism initiatives, particularly in areas that face geographical challenges. 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)
House Committee Report: Tax Code 351.152 (Tax Code 351)