BILL ANALYSIS

Senate Research Center	C.S.S.B. 2298
89R25166 RDS-F	By: Paxton
	Economic Development
	4/30/2025
	Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In 1993, the Texas 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 public-finance tool is known as a "qualified hotel project" (QHP) and describes the state and local tax rebate program authorized by Chapter 351 of the Tax Code.

S.B. 2298 simply adds the City of Plano to the statutory list of cities that may use the QHP program.  

(Original Author's/Sponsor's Statement of Intent)

C.S.S.B. 2298 amends current law relating to the use of municipal hotel occupancy tax revenue and certain tax revenue derived from a hotel and convention center project by certain municipalities.

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 351.101(q), Tax Code, as follows:

(q) Authorizes a municipality described by Section 351.152(75) or a municipality with a population of more than 10,000 that has a city hall located less than three miles from a space center operated by an agency of the federal government and that is wholly located in a county with a population of four million or more, in addition to the purposes provided by Subsections (a) (relating to authorized uses for municipal hotel occupancy tax revenue) and (e) (relating to the authority to use hotel occupancy tax revenue only on certain promotion and servicing expenditures), to use revenue from the hotel occupancy tax for the construction, improvement, enlarging, equipping, renovating, repairing, operation, and maintenance of a coliseum or multiuse facility and related infrastructure or a venue, as defined by Section 334.001(4) (relating to defining "venue"), Local Government Code, that is related to the promotion of tourism, including a hotel, resort, or convention center facility located on land owned by the municipality or a nonprofit corporation acting on behalf of the municipality. Provides that this subsection does not authorize a municipality described by Section 351.152(75) to use revenue from the hotel occupancy tax for the construction, improvement, enlarging, equipping, renovating, repairing, operation, or maintenance of a road, street, or water or sewer facility.

SECTION 2. 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:

(1)-(62) makes no changes to these subdivisions;

(63)-(64) makes nonsubstantive changes to these subdivisions; and

(75) a municipality with a population of more than 285,000 that is wholly located in two counties, each with a population of more than 900,000.

SECTION 3. Amends Section 351.161(a), Tax Code, as added by Chapter 1030 (S.B. 627), Acts of the 88th Legislature, Regular Session, 2023, to provide that Section 351.161 (Application of Other Law) applies only to a municipality described by Section 351.152(5) (relating to the applicability of Subchapter C to a municipality containing at least 70 percent of the county's population in a county of at least 1.5 million) or (75).

SECTION 4. Provides that, to the extent of any conflict, this Act prevails over another Act of the 89th Legislature, Regular Session, 2025, relating to nonsubstantive additions to and corrections in enacted codes.

SECTION 5. Effective date: upon passage or September 1, 2025.