TX HB3118

Expands eligibility for municipalities to use hotel occupancy tax revenue for sporting event expenses by adding a new category: municipalities with at least 9,000 population, wholly located in the county containing the State Capitol (Travis County), and adjacent to or bisected by State Highway 71

Allows the newly eligible municipalities (those in Travis County near Highway 71) to use hotel tax revenue for promoting tourism through enhancement and upgrading of existing municipal-owned sports facilities or fields used for district, state, regional, or national tournaments

Adds these same municipalities to the list eligible for broader hotel tax revenue spending authority under Section 351.1066, which permits additional tourism-related expenditures

Takes effect immediately upon receiving a two-thirds vote in both legislative chambers, otherwise takes effect September 1, 2025