The bill, 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. It specifically updates Section 351.152 to include new criteria for municipalities eligible to receive these funds, including those with populations of 600,000 or more adjacent to the county containing the State Capitol, and municipalities that are the county seat of a county with a population of 60,000 or less that borders the Rio Grande and contains a historic military fort. The bill also modifies Section 351.157(b) to include these new municipalities in the list of those eligible for tax revenue related to such projects.

In total, the bill introduces two new categories of municipalities (identified as 64 and 65) while deleting the previous reference to a specific category (identified as 63). This legislative change aims to enhance the financial resources available to municipalities for the development and expansion of convention center facilities, thereby promoting tourism and economic growth in Texas. The bill is set to take effect immediately upon receiving a two-thirds majority vote 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)