Texas House Bill HB4140

Texas 2025 - 89th Regular

• Filed: 3/10/25

Caption

Relating to the use of certain tax revenue to acquire and enhance multipurpose venues and related infrastructure in certain counties.

Impact

By amending the Tax Code, HB 4140 enables counties to designate specific areas as project financing zones, thus allowing for the collection and allocation of hotel occupancy taxes towards qualified projects. This is expected to stimulate local economies by increasing hotel activity and encouraging tourism, which could ultimately lead to job creation and enhanced community engagement in those areas. The bill mandates that counties inform the comptroller of their designated zones and provides clear structures for revenue allocation and bond obligations related to these projects.

Summary

House Bill 4140 pertains to the use of certain tax revenue for the acquisition and enhancement of multipurpose venues and related infrastructure within specific counties in Texas. The bill introduces provisions that allow counties to create project financing zones to benefit from hotel-associated revenues. This is aimed at promoting tourism and enhancing local economies through properly designated multipurpose facilities.

Contention

Despite the bill's economic intentions, there may be concern regarding how this power affects local governance and existing funding mechanisms. Critics could argue that while the intention is to spur growth, the reallocation of tax revenues might detract from other essential local services and infrastructure needs. The time limit imposed on project financing zones (expiring no later than 30 years after designation) could also spark debates around long-term financial planning for local governments and the sustainability of projects initiated under this legislation.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 352. County Hotel Occupancy Taxes
  • Section: New Section

Government Code

• Chapter 2303. Enterprise Zones
  • Section: 5055