TX HB4412

Applies only to municipalities that are the county seat of a county bordering New Mexico and containing a portion of a state park located in two counties

Authorizes qualifying municipalities to use hotel occupancy tax revenue for public improvement projects that directly benefit the hotel and tourism industry to promote tourism

Limits hotel occupancy tax funding to no more than 25% of total costs for any public improvement project, and requires maintaining at least the average annual spending on standard hotel tax purposes from the prior 36 months

Reduces the maximum hotel occupancy tax rate to 2% starting on the eighth anniversary of when a municipality first uses this authority for public improvements

Prohibits use of hotel occupancy tax revenue for these public improvement projects after December 31, 2034

Takes effect immediately with two-thirds legislative vote, otherwise September 1, 2025