HB 2974: Craddick Hotel Tax Bill Picks Cities By Peach Festival

Caption

relating to municipal and county hotel occupancy taxes and the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project; authorizing the imposition of taxes.

Caption from analyzed text · version S.

Summary

Or a renaissance festival. Or a country music hall of fame. Hotel guests pay.

The bill rewrites Texas hotel occupancy tax law, adding many new cities and counties, each described by size, rivers, lakes, highways or festivals, to the lists allowed to levy hotel taxes or to use state hotel tax rebates for hotel and convention center projects. It touches hotel guests, who pay the new or expanded taxes, and dozens of local governments, which gain taxing or pledging power, while also limiting most cities to pledging this money for only one hotel or convention project unless a later law approves another. On the ground, more local hotel taxes can be levied and pledged to pay off convention center debt into the 2050s, beach-cleaning rebates come with new conditions, and hotel tax money may not be spent on programs that prioritize by race, sex or similar traits.

Receipt

The receipt

89R-HB2974 · 2025-02-18

SOLD BY

Rep. Tom CraddickRHouse 82

ITEM

relating to municipal and county hotel occupancy taxes and the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project; authorizing the imposition of taxes.

WHAT IT DOES

Or a renaissance festival. Or a country music hall of fame. Hotel guests pay.

The bill rewrites Texas hotel occupancy tax law, adding many new cities and counties, each described by size, rivers, lakes, highways or festivals, to the lists allowed to levy hotel taxes or to use state hotel tax rebates for hotel and convention center projects. It touches hotel guests, who pay the new or expanded taxes, and dozens of local governments, which gain taxing or pledging power, while also limiting most cities to pledging this money for only one hotel or convention project unless a later law approves another. On the ground, more local hotel taxes can be levied and pledged to pay off convention center debt into the 2050s, beach-cleaning rebates come with new conditions, and hotel tax money may not be spent on programs that prioritize by race, sex or similar traits.

CHARGES

[x] BRACKET BILLanalysis confidence 75%

THE TEXT

“hosts an annual peach festival”

Bill text, Senate committee report version (S)

The bill aims its tax and rebate authority at single places picked out by landmarks like a peach festival, a country music hall of fame or a renaissance festival, not by any general rule. The caption does say 'certain municipalities,' so the narrowness is flagged, but the bracket list is the whole bill.

TOTAL

Net to General Revenue · FY 2026$0

LBB estimate, flow · fiscal note version S · ( ) = negative · source

Sources

Fiscal note · version S · May 22, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB2974, Committee Report 2nd House, Substituted: a negative impact of ($446,000) through the biennium ending August 31, 2027. However, there would a negative impact of ($18,264,000) in the biennium ending August 31, 2029. Similar fiscal implications would continue after 2030 until the 10th anniversary of the date of entitlement for each project, when the estimated cumulative total of entitlement to state revenue for these projects would reach ($143,705,000).

First year · FY 2026 · $0

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Feb 18, 2025Filed
Mar 20, 2025Read first time
Mar 20, 2025Referred to Ways & Means
Apr 7, 2025Scheduled for public hearing on . . .
Apr 7, 2025Considered in public hearing
Apr 7, 2025Testimony taken/registration(s) recorded in committee
Apr 7, 2025Left pending in committee
May 1, 2025Considered in formal meeting
May 1, 2025Reported favorably w/o amendment(s)
May 6, 2025Comte report filed with Committee Coordinator
May 6, 2025Committee report distributed
May 7, 2025Committee report sent to Calendars
May 7, 2025Considered in Calendars
May 9, 2025Placed on General State Calendar
May 12, 2025Read 2nd time
May 12, 2025Amended 1-Craddick
May 12, 2025Amended 2-Craddick
May 12, 2025Amended 3-Craddick
May 12, 2025Amended 4-Craddick
May 12, 2025Passed to engrossment as amended
May 12, 2025Record vote RV#2209
May 13, 2025Read 3rd time
May 13, 2025Amended 1-Craddick
May 13, 2025Passed as amended
May 13, 2025Record vote RV#2275
May 13, 2025Statement(s) of vote recorded in Journal
May 13, 2025Reported engrossed
May 14, 2025Received from the House
May 14, 2025Read first time
May 14, 2025Referred to Economic Development
May 20, 2025Co-sponsor authorized
May 21, 2025Scheduled for public hearing on . . .
May 21, 2025Considered in public hearing
May 21, 2025Testimony taken in committee
May 21, 2025Vote taken in committee
May 23, 2025Reported favorably as substituted
May 23, 2025Committee report printed and distributed
May 25, 2025Co-sponsor authorized
May 25, 2025Placed on intent calendar
May 25, 2025Rules suspended-Regular order of business
May 25, 2025Record vote
May 25, 2025Read 2nd time
May 25, 2025Amendment(s) offered FA1 King
May 25, 2025Amended
May 25, 2025Vote recorded in Journal
May 25, 2025Passed to 3rd reading as amended
May 25, 2025Record vote
May 25, 2025Three day rule suspended
May 25, 2025Record vote
May 25, 2025Read 3rd time
May 25, 2025Passed
May 25, 2025Record vote
May 26, 2025Senate passage as amended reported
May 27, 2025Senate Amendments distributed
May 27, 2025Senate Amendments Analysis distributed
May 28, 2025House refuses to concur in Senate amendments
May 28, 2025House requests conference committee
May 28, 2025House appoints conferees
May 28, 2025House refuses to concur-reported
May 28, 2025House requests conference committee-reported
May 28, 2025House appoints conferees-reported
May 29, 2025Senate grants request for conference comm.
May 29, 2025Senate appoints conferees
May 29, 2025Senate grants request for conf comm-reported
May 29, 2025Senate appoints conferees-reported

FILED UNDER

DEBT AND SPECIAL DISTRICTS

THE TEXT

…“Subsection (b)(2) only to finance a convention center constructed”…

Bill text, Senate committee report version (S)

The bill lets specific border-county cities impose a hotel tax to pay down convention center debt, with authority lasting until the debt is repaid or until 2054 or 2056.

SIGNED FOR BY

House · 102 yea · 31 nay

Senate · 25 yea · 6 nay

Sources

House: Final passage · May 13, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 25, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Tom Craddick

Donors

Associated General Contractors of Texas PAC$101K Texans for Lawsuit Reform PAC$70KJohn R. Weisman$30,000

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 29, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Associated General Contractors of Texas PAC$100,500.00

Associated General Contractors of Texas PAC

$100,500.00

Cash: $100,500.00
Paid by others: $0.00
Total: $100,500.00

Also funds 120 other sitting lawmakers.

Derived recipient stock · Jul 19, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Sep 18, 2025 to May 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101028957, 101058926.

Texans for Lawsuit Reform PAC$70,000.00

Texans for Lawsuit Reform PAC

$70,000.00

Cash: $70,000.00
Paid by others: $0.00
Total: $70,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Oct 29, 2024 to Oct 1, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986335, 101009831, 101028957, 101071728.

John R. Weisman$30,000.00

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Associated General Contractors of Texas PAC

$100,500.00

Cash: $100,500.00
Paid by others: $0.00
Total: $100,500.00

Also funds 120 other sitting lawmakers.

Derived recipient stock · Jul 19, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Sep 18, 2025 to May 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101028957, 101058926.

×

Texans for Lawsuit Reform PAC

$70,000.00

Cash: $70,000.00
Paid by others: $0.00
Total: $70,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Oct 29, 2024 to Oct 1, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986335, 101009831, 101028957, 101071728.

Votes6

Senate May 25, 2025

Yea: 25
Nay: 6
Present, not voting: Not printed
Absent: 0
Excused: 0

Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

The bill was read third time and was passed by the following vote: Yeas 25, Nays 6. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

Yea: 25 (published)
Nay: 6 (published)
Present, not voting: Not printed
Absent: 0 (derived from named list)
Excused: 0 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 25, 2025

Yea: 25
Nay: 6
Present, not voting: Not printed
Absent: 0
Excused: 0

Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

Senator King moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSHB 2974 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 25, Nays 6.

Published stock of positions for this vote, except where marked derived.

Yea: 25 (published)
Nay: 6 (published)
Present, not voting: Not printed
Absent: 0 (derived from named list)
Excused: 0 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 25, 2025

Yea: 25
Nay: 6
Present, not voting: Not printed
Absent: 0
Excused: 0

Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

CSHB 2974 as amended was passed to third reading by the following vote: Yeas 25, Nays 6.

Published stock of positions for this vote, except where marked derived.

Yea: 25 (published)
Nay: 6 (published)
Present, not voting: Not printed
Absent: 0 (derived from named list)
Excused: 0 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 25, 2025

Yea: 25
Nay: 6
Present, not voting: Not printed
Absent: 0
Excused: 0

Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

Senator King moved to suspend the regular order of business to take up for consideration CSHB 2974 at this time on its second reading: CSHB 2974, Relating to municipal and county hotel occupancy taxes and the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project; authorizing the imposition of taxes. The motion prevailed by the following vote: Yeas 25, Nays 6.

Published stock of positions for this vote, except where marked derived.

Yea: 25 (published)
Nay: 6 (published)
Present, not voting: Not printed
Absent: 0 (derived from named list)
Excused: 0 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

House May 13, 2025

Yea: 102
Nay: 31
Present, not voting: 2
Absent: 6
Excused: 9

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2275

HB 2974, as amended, was passed by (Record 2275): 102 Yeas, 31 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 102 (published)
Nay: 31 (published)
Present, not voting: 2 (published)
Absent: 6 (derived from named list)
Excused: 9 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 12, 2025

Yea: 108
Nay: 31
Present, not voting: 3
Absent: 3
Excused: 5

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2209

HB 2974, as amended, was passed to engrossment by (Record 2209): 108 Yeas, 31 Nays, 3 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 108 (published)
Nay: 31 (published)
Present, not voting: 3 (published)
Absent: 3 (derived from named list)
Excused: 5 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses30

For: 27
Against: 1
On: 2

Names

For

City of Bastrop, Texas6 registrations
City of Burleson, Texas5 registrations
City of Carrollton, Texas1 registration
City of Garland, Texas1 registration
City of McAllen1 registration
City of Midland2 registrations
City of Tyler, Texas1 registration
Midland Development Corp1 registration
Permian Basin Medical Center1 registration
Texas Hotel & Lodging Association2 registrations
Texas Travel Alliance2 registrations
The Genecov Group, Inc.1 registration
Town of Addison1 registration
Tyler Economic Development Council1 registration
Winstead pc1 registration

Against

Self1 registration

On

Comptroller of Public Accounts1 registration
Texas Comptroller of Public Accounts1 registration

Sources

30 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

Net to General Revenue · FY 2026$0

LBB estimate, flow · fiscal note version S · ( ) = negative · source

Sources

Fiscal note · version S · May 22, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB2974, Committee Report 2nd House, Substituted: a negative impact of ($446,000) through the biennium ending August 31, 2027. However, there would a negative impact of ($18,264,000) in the biennium ending August 31, 2029. Similar fiscal implications would continue after 2030 until the 10th anniversary of the date of entitlement for each project, when the estimated cumulative total of entitlement to state revenue for these projects would reach ($143,705,000).

First year · FY 2026 · $0

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version S by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Feb 18, 2025

05/29/2025 H Senate appoints conferees-reported

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report

Data snapshot Nov 1, 2026 at 1:45 PM CST. Grades, charges, quotes and corrections follow the published record.

Companion

SB 1885 by Sparks (identical)

Subjects

Taxation--Hotel, Motel Occupancy

COMPTROLLER OF PUBLIC ACCOUNTS

Text

The text as introduced · 188 words

89R9099 RDS-D

By: Craddick
H.B. No. 2974

A BILL TO BE ENTITLED

AN ACT

relating to the authority of certain municipalities to use certain

tax revenue for a hotel and convention center project and to receive

certain tax revenue related to the project.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 351.155(d), Tax Code, is amended to read

as follows:

(d) Subsection (c) does not apply to :

(1) a municipality with a population of 175,000 or

more ; or

(2) a municipality described by Section 351.152(12)

that has a population of 130,000 or more .

SECTION 2. Section 351.157, Tax Code, is amended by adding

Subsection (b-1) to read as follows:

(b-1) In addition to the municipalities described by

Subsection (b), this section applies to a municipality described by

Section 351.155(d)(2).

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

Verdict: Smells

The receipt

SOLD BY

ITEM

WHAT IT DOES

CHARGES

TOTAL

HISTORY

SIGNED FOR BY

Donors

Associated General Contractors of Texas PAC

Texans for Lawsuit Reform PAC

Associated General Contractors of Texas PAC

Texans for Lawsuit Reform PAC

Senate May 25, 2025

Senate May 25, 2025

Senate May 25, 2025

Senate May 25, 2025

House May 13, 2025

House May 12, 2025

For

Against

On

Companion