H.B. No. 3241 amends Section 351.152 of the Texas Tax Code to expand the list of municipalities eligible to use certain tax revenues for hotel and convention center projects. The bill introduces new criteria for eligibility, including municipalities that are the county seat of a county with a population of 600,000 or more that is adjacent to the county containing the State Capitol. Additionally, it adds a provision 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.

The bill also removes a previous eligibility criterion related to municipalities with a population of 35,000 or more that contain a railroad museum and are located in a specific county demographic. The changes aim to provide more municipalities with the opportunity to utilize tax revenue for the development of hotel and convention center projects, thereby potentially boosting local economies and tourism. The act will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.

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