BILL ANALYSIS Senate Research Center S.B. 2297 89R9928 JBD-D By: Paxton Economic Development 4/11/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT In 1993, the legislature passed H.B. 2282 which authorized a rebate of state hotel occupancy and state sales tax for a qualified hotel project designed to assist the city of Houston with the development of the George R. Brown convention center. This new public-finance tool is known as "qualified hotel project" (QHP) and used to describe the state and local tax rebate program authorized by Chapter 351 of the Tax Code. The QHP was created as a public-private financial tool to assist Texas municipalities with the financing of headquarter hotel facilities designed to support convention centers. These "convention center hotels" are typically massive in size, generally larger than other hotels, due primarily to the fact that they not only contain more guest rooms than a traditional hotel but also vast areas of meeting space, restaurants, and other amenities that complement the convention center. As such, these facilities are expensive and thus challenging, if not impossible, to construct entirely with private-sector funding. S.B. 2297 simply adds the City of Anna to the statutory list of cities that may use the hotel/motel tax for a qualified convention center project. As proposed, S.B. 2297 amends current law relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 351.152, Tax Code, as follows: Sec. 351.152. APPLICABILITY. Provides that Subchapter C (Municipal Hotel and Convention Center Projects) applies only to certain municipalities, including a municipality with a population of 15,000 or more but less than 30,000, that is bisected by United States Highway 75, and that is wholly located in a county with a population of 750,000 or more, in which all or part of a municipality with a population of one million or more is located, and that is adjacent to a county with a population of two million or more. Makes a nonsubstantive change. SECTION 2. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2297
89R9928 JBD-D By: Paxton
Economic Development
4/11/2025
As Filed
Senate Research Center
S.B. 2297
89R9928 JBD-D
By: Paxton
Economic Development
4/11/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
In 1993, the legislature passed H.B. 2282 which authorized a rebate of state hotel occupancy and state sales tax for a qualified hotel project designed to assist the city of Houston with the development of the George R. Brown convention center. This new public-finance tool is known as "qualified hotel project" (QHP) and used to describe the state and local tax rebate program authorized by Chapter 351 of the Tax Code.
The QHP was created as a public-private financial tool to assist Texas municipalities with the financing of headquarter hotel facilities designed to support convention centers. These "convention center hotels" are typically massive in size, generally larger than other hotels, due primarily to the fact that they not only contain more guest rooms than a traditional hotel but also vast areas of meeting space, restaurants, and other amenities that complement the convention center. As such, these facilities are expensive and thus challenging, if not impossible, to construct entirely with private-sector funding.
S.B. 2297 simply adds the City of Anna to the statutory list of cities that may use the hotel/motel tax for a qualified convention center project.
As proposed, S.B. 2297 amends current law relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 351.152, Tax Code, as follows:
Sec. 351.152. APPLICABILITY. Provides that Subchapter C (Municipal Hotel and Convention Center Projects) applies only to certain municipalities, including a municipality with a population of 15,000 or more but less than 30,000, that is bisected by United States Highway 75, and that is wholly located in a county with a population of 750,000 or more, in which all or part of a municipality with a population of one million or more is located, and that is adjacent to a county with a population of two million or more. Makes a nonsubstantive change.
SECTION 2. Effective date: upon passage or September 1, 2025.