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 that are located near federal space centers and in counties with populations of four million or more to utilize this revenue for the construction, improvement, and maintenance of coliseums, multiuse facilities, and related infrastructure aimed at promoting tourism. The bill also 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.

Additionally, the bill updates the applicability section of the Tax Code to include a new category of municipalities, specifically those with populations over 285,000 that are wholly located in two counties, each with populations exceeding 900,000. This inclusion broadens the scope of municipalities eligible to benefit from the provisions of the hotel occupancy tax revenue. 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)
House Committee Report: Tax Code 351.101, Tax Code 351.152 (Tax Code 351)