H.B. No. 3954 amends the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects. The bill updates Section 351.152 to include new criteria for municipalities eligible to receive these funds, specifically adding a new category (65) for municipalities with a population between 10,000 and 75,000 that are located in two counties, one of which contains the State Capitol and hosts an annual German festival. Additionally, it modifies the existing criteria by deleting the previous condition (63) related to municipalities with a railroad museum.

Furthermore, the bill amends Section 351.157(b) to include the newly added municipality category (65) among those eligible for tax revenue. This change aims to enhance the financial support for municipalities that meet specific demographic and cultural criteria, thereby promoting tourism and economic development through hotel and convention center projects. 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)