S.B. No. 2298 aims to amend the Texas Tax Code regarding the use of municipal hotel occupancy tax revenue by certain municipalities. The bill allows municipalities with populations over 10,000, specifically those located near federal space centers and in counties with populations of four million or more, to utilize hotel occupancy tax revenue for the construction, improvement, and maintenance of coliseums, multiuse facilities, and related infrastructure that promote tourism. Notably, the bill specifies that municipalities described by Section 351.152(75) are prohibited from using this revenue for road, street, or water and sewer facility projects.

Additionally, the bill expands the applicability of certain provisions to include municipalities with populations over 285,000 that are located in two counties, each with populations exceeding 900,000. This change is reflected in the amendments to Section 351.152 and Section 351.161(a) of the Tax Code. 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)