H.B. No. 3241 amends Section 351.152 of the Texas Tax Code to expand the authority of certain municipalities to utilize specific tax revenues for hotel and convention center projects. The bill introduces new eligibility criteria for municipalities, including those that are the county seat of a county with a population of 600,000 or more adjacent to the county containing the State Capitol, and it also 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 historic military fort. These additions are marked as new legal language in the bill.

The bill aims to enhance the ability of municipalities to fund and develop tourism-related infrastructure, thereby potentially boosting local economies. The changes reflect a strategic effort to support municipalities of varying sizes and characteristics, ensuring that a broader range of communities can benefit from the economic opportunities associated with hotel and convention center projects. The act will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will become effective 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)