House Bill No. 3196 aims to expand the authority of certain municipalities in Texas to receive tax revenue generated from hotel and convention center projects. The bill amends Section 351.152 of the Tax Code to include a new category of municipalities eligible for this tax revenue, specifically adding a new subsection (3-a) that describes a municipality as one that is defined by Section 351.001(11). This inclusion broadens the scope of municipalities that can benefit from the tax revenue, thereby potentially increasing funding for local projects related to tourism and convention facilities.

The bill also outlines the conditions under which these municipalities can pledge the tax revenue for obligations associated with the hotel and convention center projects. The legislation is designed to stimulate economic growth by enhancing the capabilities of municipalities to invest in infrastructure that supports tourism and conventions. The bill is set to take effect immediately upon receiving a two-thirds majority vote in both houses of the legislature; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Tax Code 351.152 (Tax Code 351)