Texas House Bill HB3241

Texas 2025 - 89th Regular

• Filed: 2/24/25

Caption

Relating to the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project.

Impact

The proposed changes come with varied implications for state laws. By permitting selected municipalities to access and pledge tax revenues for convention projects, the bill may overhaul existing financial frameworks governing local funding sources. This could potentially simplify funding procurement for large-scale developments while enhancing the amenities that draw visitors, thereby catalyzing job creation and incidental tax income through boosted tourism.

Summary

House Bill 3241 is introduced to modify the authority of specific municipalities within Texas to collect certain tax revenues stemming from hotel and convention center projects. The bill outlines eligible municipalities that can leverage these tax revenues to bolster financial commitments related to the development and enhancement of convention facilities. This legislation is framed as a tool for municipalities to attract more tourism and generate additional economic activity within their regions, ultimately benefiting local economies and improving public infrastructure.

Contention

While the bill is presented with an aim at economic upliftment, there are concerns regarding its long-term impact on state and municipal finances. Opponents of HB 3241 may argue that funneling tax revenues towards specific projects could limit funding availability for other essential services within municipalities, including public safety and education. The selective nature of the municipalities specified in the bill raises questions about equitable access to state resources and whether it upholds fairness in the allocation of tax revenue based on arbitrary population and geographic criteria.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 351. Municipal Hotel Occupancy Taxes
  • Section: 152
  • Section: 157