Bill Text: TX HB3118 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to the use of municipal hotel occupancy tax revenue in certain municipalities.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-20 - Filed [HB3118 Detail]

Download: Texas-2025-HB3118-Introduced.html

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89R10435 JBD-F
By: Troxclair H.B. No. 3118

A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal hotel occupancy tax revenue in
certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.101(a), Tax Code, is amended to read
as follows:
(a) Revenue from the municipal hotel occupancy tax may be
used only to promote tourism and the convention and hotel industry,
and that use is limited to the following:
(1) the acquisition of sites for and the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of convention center facilities or visitor information
centers, or both;
(2) the furnishing of facilities, personnel, and
materials for the registration of convention delegates or
registrants;
(3) advertising and conducting solicitations and
promotional programs to attract tourists and convention delegates
or registrants to the municipality or its vicinity;
(4) the encouragement, promotion, improvement, and
application of the arts, including instrumental and vocal music,
dance, drama, folk art, creative writing, architecture, design and
allied fields, painting, sculpture, photography, graphic and craft
arts, motion pictures, radio, television, tape and sound recording,
and other arts related to the presentation, performance, execution,
and exhibition of these major art forms;
(5) historical restoration and preservation projects
or activities or advertising and conducting solicitations and
promotional programs to encourage tourists and convention
delegates to visit preserved historic sites or museums:
(A) at or in the immediate vicinity of convention
center facilities or visitor information centers; or
(B) located elsewhere in the municipality or its
vicinity that would be frequented by tourists and convention
delegates;
(6) expenses, including promotion expenses, directly
related to a sporting event in which the majority of participants
are tourists who substantially increase economic activity at hotels
and motels within the municipality or its vicinity if:
(A) the municipality is located in a county with
a population of one million or less;
(B) the municipality has a population of more
than 67,000 and is located in two counties with 90 percent of the
municipality's territory located in a county with a population of
at least 800,000, and the remaining territory located in a county
with a population of at least four million; [or]
(C) the municipality has a population of at least
200,000 and shares a border with:
(i) a municipality with a population of at
least 62,000 that:
(a) borders Lake Ray Hubbard; and
(b) is located in two counties, one of
which has a population of less than 110,000; and
(ii) Lake Ray Hubbard; or
(D) the municipality has a population of at least
19,000 and is wholly located in a county in which the State Capitol
is located;
(7) subject to Section 351.1076, the promotion of
tourism by the enhancement and upgrading of existing sports
facilities or fields if:
(A) the municipality owns the facilities or
fields;
(B) the municipality:
(i) has a population of 80,000 or more and
is located in a county that has a population of 610,000 or less;
(ii) has a population of at least 80,000 but
not more than 125,000 and is located in a county that has a
population of less than 240,000 but more than 233,500;
(iii) has:
(a) a population of at least 10,000
and is located in a county that has a population of more than 70,000
and borders Lake Livingston; or
(b) a population of 36,000 or more and
is located in a county with a population of less than 95,000 that
borders Oklahoma;
(iv) has a population of at least 13,000 but
less than 48,000 and is located in a county that has a population of
at least 200,000;
(v) has a population of at least 70,000 but
less than 90,000 and no part of which is located in a county with a
population greater than 150,000;
(vi) is located in a county that:
(a) is adjacent to the Texas-Mexico
border;
(b) has a population of at least
500,000; and
(c) does not have a municipality with
a population greater than 500,000;
(vii) is located in a county that has a
population of 100,000 or less and the municipality has a population
of:
(a) more than 24,400 and less than
25,000; or
(b) more than 28,150 and less than
31,000;
(viii) is located in a county that has a
population of not more than 300,000 and in which a component
university of the University of Houston System is located;
(ix) has a population of at least 40,000 and
the San Marcos River flows through the municipality;
(x) has a population of more than 67,000 and
is located in two counties with 90 percent of the municipality's
territory located in a county with a population of at least 800,000,
and the remaining territory located in a county with a population of
at least four million;
(xi) contains an intersection of
Interstates 35E and 35W and at least two public universities; or
(xii) is described by Subdivision (6)(C);
and
(C) the sports facilities and fields have been
used, in the preceding calendar year, a combined total of more than
10 times for district, state, regional, or national sports
tournaments;
(8) for a municipality with a population of at least
70,000 but less than 90,000, no part of which is located in a county
with a population greater than 150,000, the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of a coliseum or multiuse facility;
(9) signage directing the public to sights and
attractions that are visited frequently by hotel guests in the
municipality;
(10) the construction, improvement, enlarging,
equipping, repairing, operation, and maintenance of a coliseum or
multiuse facility, if the municipality:
(A) has a population of at least 90,000 but less
than 120,000; and
(B) is located in two counties, at least one of
which contains the headwaters of the San Gabriel River; and
(11) for a municipality with a population of more than
175,000 but less than 225,000 that is located in two counties, each
of which has a population of less than 200,000, the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of a coliseum or multiuse facility and related
infrastructure or a venue, as defined by Section 334.001(4), Local
Government Code, that is related to the promotion of tourism.
SECTION 2. Section 351.1066(a), Tax Code, is amended to
read as follows:
(a) This section applies only to:
(1) a municipality with a population of at least 3,500
but less than 5,500 that is the county seat of a county with a
population of less than 50,000 that borders a county with a
population of more than 1.6 million;
(2) a municipality with a population of at least 2,800
but less than 3,500 that is the county seat of a county with a
population of less than 22,000 that is bordered by the Trinity River
and includes a state park and a portion of a wildlife management
area;
(3) a municipality with a population of at least 8,000
that is located in a county that borders the Pecos River and that
has a population of not more than 15,000;
(4) a municipality with a population of not more than
15,000 that is located in a county through which the Frio River
flows and an interstate highway crosses, and that has a population
of at least 15,000;
(5) a municipality with a population of not less than
7,500 that is located in a county with a population of not less than
40,000 but less than 250,000 that is adjacent to a county with a
population of less than 750;
(6) a municipality that is the county seat of a county
with a population of at least 8,500 and that county contains part of
the Chaparral Wildlife Management Area; [and]
(7) a municipality that has a population of not more
than 25,000, that contains a cultural heritage museum, and that is
located in a county that borders the United Mexican States and the
Gulf of Mexico; and
(8) a municipality that has a population of at least
19,000 and is wholly located in a county in which the State Capitol
is located.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.