S.B. No. 2298 amends the Texas Tax Code to expand the permissible uses of municipal hotel occupancy tax revenue for certain municipalities. Specifically, it allows municipalities with populations over 10,000 that are located near federal space centers and in counties with populations of four million or more to utilize this tax revenue for the construction, improvement, and maintenance of coliseums, multiuse facilities, and related infrastructure aimed at promoting tourism. Additionally, the bill clarifies that municipalities described by Section 351.152(75) are prohibited from using hotel occupancy tax revenue for the construction or maintenance of roads, streets, or water and sewer facilities.

The bill also updates the list of municipalities eligible for these provisions by adding a new category (75) for municipalities with populations exceeding 285,000 that are wholly located in two counties, each with populations over 900,000. This change is part of a broader effort to ensure that the use of hotel occupancy tax revenue aligns with the needs of larger municipalities while maintaining restrictions on certain types of expenditures. 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 351.101, Tax Code 351.152, Tax Code 351.157 (Tax Code 351)
Senate Committee Report: Tax Code 351.101, Tax Code 351.152 (Tax Code 351)