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 introduces new criteria for eligibility, including a new category for municipalities that are located in a county with a population of 600,000 or more adjacent to the county containing the State Capitol, and have a population between 16,000 and 27,000. 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 bordering the Rio Grande, which also had a military fort listed in the National Register of Historic Places.

The bill aims to enhance the economic development potential of municipalities by allowing them to invest in infrastructure that supports tourism and convention activities. The changes are designed to provide more municipalities with the opportunity to access tax revenue for these projects, thereby promoting growth and development in various regions of Texas. The act will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will become effective 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)