Bill > HB3118

This bill modifies the Texas Tax Code to expand how certain municipalities can use their municipal hotel occupancy tax revenue. Specifically, the bill adds a new provision allowing municipalities with at least 9,000 residents that are located entirely within the county containing the State Capitol and are adjacent to or bisected by State Highway 71 to use hotel tax revenue for additional purposes. These purposes include promoting tourism, funding convention center facilities, supporting arts and historical preservation, and financing sports-related promotional activities. The bill expands the list of municipalities eligible for these expanded uses of hotel occupancy tax, creating a specific carve-out for a particular small municipality that meets the newly defined geographic and population criteria. The modifications are technical in nature and appear to be tailored to enable a specific local government to have more flexibility in using its hotel tax revenue for economic development and tourism promotion. The bill will take effect immediately if it receives a two-thirds vote in the Texas Legislature, or on September 1, 2025, if it does not receive the required supermajority vote.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3118