S.B. No. 1071 amends Section 351.152 of the Texas Tax Code to expand the list of municipalities eligible to use certain tax revenue derived from hotel and convention center projects. The bill introduces new criteria for eligibility, including a municipality that has a population of 10,000 or more but less than 75,000, is located in two counties (one of which contains the State Capitol), and hosts an annual German festival. Additionally, it removes a previous eligibility criterion related to municipalities that are the county seat of a county with a population of 60,000 or less and that borders the Rio Grande, replacing it with the new criteria.

The bill aims to provide more municipalities with the authority to utilize tax revenue for development projects, potentially enhancing local economies and tourism. The changes reflect a broader approach to include diverse municipalities based on specific characteristics, thereby promoting regional growth and development. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: Tax Code 351.152, Tax Code 351.157 (Tax Code 351)
Senate Committee Report: Tax Code 351.152 (Tax Code 351)