Relating to the authority of certain municipalities to pledge certain tax revenue for the payment of obligations related to, and receive certain tax revenue derived from, a hotel and convention center project.

HB 2408 amends Texas tax code to allow specific municipalities (those meeting criteria in Sections 351.102(e)(3) and 351.152(14)) to pledge certain local tax revenue to pay for obligations related to hotel and convention center projects. It also permits these municipalities to receive tax revenue derived from such projects. The bill requires qualifying municipalities to begin these projects before September 1, 2027, to qualify for the tax revenue provisions. This bill directly affects cities pursuing hotel/convention center developments that meet the specified municipal criteria.