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HB 2289

Relating to the authority of certain municipalities to use certain tax revenue derived from a hotel and convention center project.

89th Legislature (2025) Introduced by Carrie Isaac

HB 2289 allows select Texas municipalities greater flexibility to use hotel and convention center tax revenues for expanded municipal purposes beyond original restrictions.

Received from the House
#conventions&conventioncenters(s0348) #citygovernment--finance(i0062) #newbraunfels #cityof(g0572) #taxation--hotel #moteloccupancy(i0806)
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WeVote Research Nonpartisan
Bill Summary · HB 2289

Legislative bill overview

HB 2289 expands the authority of certain Texas municipalities to utilize tax revenue generated from hotel and convention center projects for broader purposes than previously allowed. The bill modifies existing restrictions on how local governments can allocate these funds, potentially enabling reinvestment in related infrastructure or economic development initiatives.

Why is this important

Hotel and convention center projects are significant economic drivers in Texas cities, and revenue allocation flexibility can affect how municipalities fund related public improvements, tourism promotion, or debt service. This change could impact tax policy for businesses operating in hospitality sectors and influence how cities balance project financing with broader community investments.

Potential points of contention

  • Revenue reallocation concerns: Clarification needed on whether funds previously designated for specific purposes will be redirected, potentially affecting existing stakeholders or project commitments
  • Scope ambiguity: The bill's reference to "certain municipalities" and "certain projects" lacks public detail on which cities and facilities qualify, raising equity questions about differential treatment
  • Oversight and accountability: Expansion of discretionary spending authority may warrant scrutiny regarding transparency requirements and public notice for how revenues will actually be deployed

Compiled from official sources — confirm details with the bill’s official record.

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