H.B. No. 3954 amends Section 351.152 of the Texas Tax Code to expand the applicability of certain tax revenue derived from hotel and convention center projects to additional municipalities. The bill introduces new criteria for eligibility, including municipalities with populations between 10,000 and 75,000 that are located in two counties, one of which contains the State Capitol and that host an annual German festival. Additionally, it removes a previous eligibility criterion related to municipalities that are the county seat of a county with a population of 60,000 or less and that borders the Rio Grande, while adding a new criterion for municipalities that contain a United States military fort listed in the National Register of Historic Places.

The bill aims to enhance the ability of various municipalities to utilize tax revenue for development projects, thereby promoting tourism and economic growth. It is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature, or on September 1, 2025, if such a vote is not achieved.

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)