Texas House Bill HB 4109

Texas 2025 - 89th Regular

• Filed: 3/7/25

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.

Summary

HB 4109 would expand the list of municipalities eligible to receive certain tax revenues generated by a hotel and convention center project and to pledge those revenues to pay related obligations. The bill amends two provisions of the Tax Code that govern which municipalities may participate in these hotel/convention center financing arrangements, adding or clarifying eligibility for municipalities identified by specific subsections of Section 351.152. In practical terms, the bill appears to broaden access to a local economic development financing tool used for convention center and hotel projects. It does not create a new tax, but instead adjusts which cities may capture and dedicate certain tax receipts tied to qualifying projects and use them to secure project-related debt or other obligations. The bill also includes a standard effective-date provision, allowing immediate effect if it receives the required two-thirds vote in each chamber, otherwise taking effect September 1, 2025.

Impact

HB 4109 would amend the Tax Code provisions governing municipal hotel and convention center project financing, expanding the set of municipalities that may receive and pledge designated tax revenue for these projects. The change affects local governments eligible under Section 351.152 and may influence how cities structure financing for convention center, hotel, and related tourism-development projects. It would not directly alter state tax rates, but it would change the statutory eligibility framework for using certain local tax revenues as project support.

Sentiment

The available record suggests the bill was treated as a technical or enabling local-government finance measure rather than a controversial policy change. There are no recorded committee transcripts or votes indicating strong opposition or support, and the bill was left pending in the House Ways & Means Committee. Overall, the sentiment appears neutral to favorable, with the measure likely intended to provide additional flexibility to qualifying municipalities.

Contention

The main point of contention, to the extent one exists, would be which municipalities should be allowed to participate in these hotel and convention center financing mechanisms and whether expanding that authority is appropriate. Because the bill amends eligibility lists by cross-reference, any debate would likely center on local fiscal risk, the use of tax revenue to support development projects, and whether the expanded authority benefits specific cities more than the state as a whole. No specific objections or supporters are documented in the provided materials.