Relating to the entitlement of certain municipalities to receive tax revenue from certain establishments located near a hotel and convention center project.

HB 1186 amends Texas tax code to expand which municipalities can receive tax revenue from businesses near a specific hotel and convention center project. It applies to cities with 130,000 or more residents that qualify under existing tax code provisions (Section 351.152(12)). The key change adds these larger cities to the list of municipalities entitled to share tax revenue generated by nearby establishments. If passed, the bill would take effect immediately with a two-thirds vote or September 1, 2025, otherwise. The bill focuses on clarifying tax revenue distribution rules, not creating new programs or policies.