The bill, H.B. No. 2877, amends the definition of a "project financing zone" within the Texas Tax Code, specifically Section 351.1015(a)(4). The updated definition clarifies that a project financing zone is an area designated by a municipality that is either within a three-mile radius of a qualified project or, if the municipality meets certain criteria, a contiguous area that is less than or equal to that radius. Additionally, the bill specifies that the designation must include the longitude and latitude of the project's center or the exact boundaries of the zone, depending on the designation criteria.

Furthermore, the bill establishes that the designation of a project financing zone will expire no later than 30 years from the date it is designated. This legislation aims to provide municipalities with clearer guidelines for utilizing tax revenue to fund convention center facilities, multipurpose arenas, and related infrastructure, thereby enhancing local economic development efforts. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Tax Code 351.1015 (Tax Code 351)