TX HB4140

Allows certain counties to use county hotel occupancy tax revenue to fund "qualified projects," defined as multipurpose venue facilities designed to enhance hotel activity and encourage tourism, along with related infrastructure

Creates a "project financing zone" mechanism that counties can designate by order, with designations lasting up to 30 years, to capture incremental state hotel-associated tax revenue above a base year amount

Permits counties to pledge three revenue sources for bonds or obligations to acquire, construct, and improve qualified projects: county hotel occupancy tax revenue from hotels in the zone, local eligible tax proceeds, and incremental hotel-associated revenue from the state

Requires the comptroller to deposit incremental hotel-associated revenue into a separate suspense account held in trust for the county, with payments beginning once the qualified project is commenced

Imposes a 5-year deadline for project commencement—if the qualified project is not started within 5 years of the first deposit, funds transfer to the state general revenue fund and deposits cease