H.B. No. 5562 amends Section 351.152 of the Texas Tax Code to expand the list of municipalities eligible to utilize certain tax revenues from hotel and convention center projects. The bill introduces new criteria for eligibility, including a new category for municipalities with a population of more than 240,000 but less than 270,000 that border a man-made lake with a surface area exceeding 20,000 acres. Additionally, it removes a previous eligibility criterion related to municipalities that are the county seat of a county with a population of 60,000 or less that borders the Rio Grande and contains a United States military fort listed in the National Register of Historic Places.

The bill aims to provide more municipalities with the opportunity to benefit from tax revenues generated by hotel and convention center projects, thereby promoting local economic development and tourism. The changes will take effect immediately if passed by a two-thirds majority in both houses; otherwise, the bill will become effective on September 1, 2025.

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