S.B. No. 1496 amends the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects and to pledge this revenue for related financial obligations. The bill updates Section 351.152 to include new criteria for municipalities eligible for these benefits, specifically adding a new category for municipalities that are the county seat of a county with a population of 600,000 or more and adjacent to the county containing the State Capitol. Additionally, it removes a previous provision regarding municipalities that are the county seat of a county with a population of 60,000 or less and that borders the Rio Grande.

Furthermore, Section 351.157(b) is amended to include the newly defined municipalities in the list of those eligible for the tax revenue benefits. This change aims to enhance the economic development potential of these municipalities by allowing them to leverage tax revenues for the construction and expansion of convention center facilities. The bill 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)