H.B. No. 3241 amends the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects. The bill specifically updates Section 351.152, which outlines the municipalities eligible for this tax revenue. Notably, it adds 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 modifies existing criteria by removing a previous requirement related to municipalities that are the county seat of a county with a population of 60,000 or less that borders the Rio Grande.

Furthermore, the bill amends Section 351.157(b) to include the newly added municipality criteria in the list of those eligible for certain tax revenue benefits. This change aims to enhance the financial resources available to municipalities for the development and expansion of convention center facilities, thereby promoting tourism and economic growth in these areas. 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)