The bill 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. Specifically, it introduces new criteria for eligibility, including a municipality with a population of 10,000 or more but less than 75,000 that is located in two counties, one of which contains the State Capitol and that hosts 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 that borders the Rio Grande, thereby streamlining the criteria for municipalities seeking to utilize tax revenue for these projects.

The bill aims to enhance the ability of various municipalities to leverage tax revenue for the development and expansion of hotel and convention center facilities, potentially boosting local economies and tourism. The changes will take effect immediately if passed by a two-thirds majority in both houses; otherwise, the bill 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)