H.B. No. 4659 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 detailed list of municipalities that qualify based on various population thresholds and geographic criteria. Notably, it introduces new eligibility criteria, including a municipality with a population of more than 16,000 but less than 18,000 that is located in a county with a population exceeding 2.5 million and adjacent to a county with a population over 2.1 million. 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 included a military fort listed in the National Register of Historic Places.

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 majority vote in both houses or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: Tax Code 351.152, Tax Code 351.157 (Tax Code 351)
House Committee Report: Tax Code 351.152 (Tax Code 351)