House Bill No. 5562 amends the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects. The bill specifically updates Section 351.152 to include new criteria for municipalities eligible to receive these funds. Notably, it adds a new category (65) for municipalities with a population of 240,000 or more that border a man-made lake with a surface area exceeding 20,000 acres. Additionally, it removes a previous category (64) that described a municipality as the county seat of a county with a population of 60,000 or less that borders the Rio Grande and contains a historic military fort.

Furthermore, the bill modifies Section 351.157(b) to include the newly added category (65) among the municipalities eligible for certain tax revenue provisions. This change aims to enhance the financial resources available for municipalities engaged in hotel and convention center projects, thereby promoting tourism and economic development in these areas. The bill 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)