H.B. No. 4682 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 and those described by Section 351.152(75) to utilize this revenue for the construction, improvement, and maintenance of coliseums or multiuse facilities, as well as related infrastructure that promotes tourism. However, the bill explicitly states that municipalities described by Section 351.152(75) cannot use hotel occupancy tax revenue for the construction or maintenance of roads, streets, or water and sewer facilities.

Additionally, the bill 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 aims to ensure that larger municipalities have access to hotel occupancy tax revenue for tourism-related projects while maintaining restrictions on certain types of infrastructure spending. The bill will 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)
House Committee Report: Tax Code 351.101, Tax Code 351.152 (Tax Code 351)