Senate Bill 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 applicability section of the Tax Code to include a new category for municipalities with populations over 285,000 that are wholly located in two counties, each with populations exceeding 900,000. This change is part of a broader effort to ensure that larger municipalities can effectively utilize hotel occupancy tax revenues for tourism-related projects. The bill 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)