H.B. No. 4098 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 outlines a comprehensive list of municipalities that qualify based on various population thresholds and geographic criteria. Notably, it introduces new eligibility criteria for municipalities, including those with populations between 16,000 and 27,000 located in a county with a population of 600,000 or more adjacent to the county containing the State Capitol. Additionally, it removes a previous criterion related to municipalities that are the county seat of a county with a population of 60,000 or less bordering the Rio Grande, which is replaced by the new insertion.

The bill aims to enhance the economic development potential of these municipalities by allowing them to invest in infrastructure that supports tourism and convention activities. The changes are designed to provide more flexibility and opportunities for municipalities to leverage tax revenues for projects that can stimulate local economies. The act 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)