Bill > HB4140

This bill creates a new mechanism for counties to use hotel occupancy tax revenue to fund and finance multipurpose venues and related infrastructure in designated "project financing zones". Specifically, the bill allows a county to create a project financing zone and pledge future increases in hotel-associated tax revenue (called "incremental hotel-associated revenue") to fund the construction, improvement, or expansion of a qualified project, such as a multipurpose facility designed to enhance hotel activity and tourism. The bill requires the county to notify the state comptroller about the project financing zone, and the comptroller will then establish a separate suspense account to hold the incremental hotel tax revenue. The county can use this revenue to pay for bonds or obligations related to the project. If the qualified project is not commenced within five years of the first deposit, the funds will be transferred to the general revenue fund. The bill applies only to certain counties and will take effect on September 1, 2025, providing a new financial tool for local governments to develop tourism-related infrastructure.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4140