S.B. No. 1071 amends Section 351.152 of the Texas Tax Code to expand the list of municipalities eligible to utilize certain tax revenue derived from hotel and convention center projects. The bill introduces new criteria for eligibility, including municipalities with populations between 10,000 and 75,000 that are located in two counties, one of which contains the State Capitol and that 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 that borders the Rio Grande, thereby streamlining the qualifications for municipalities seeking to access these tax revenues.

The bill aims to enhance economic development by allowing a broader range of municipalities to benefit from tax revenues associated with tourism and convention activities. If passed, the act will take effect immediately upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will become effective on September 1, 2025.

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