The bill, S.B. No. 1496, seeks to amend the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue generated from hotel and convention center projects. It specifically allows these municipalities to pledge the tax revenue for obligations related to such projects. The bill updates Section 351.152 of the Tax Code, which outlines the applicability of the subchapter, by adding new criteria for municipalities that qualify for these provisions. Notably, it introduces a new category (65) 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, the bill modifies Section 351.157(b) to include the newly added municipality category (65) among those eligible for the provisions of the section. The changes aim to enhance the financial capabilities of municipalities in managing and funding hotel and convention center projects, thereby potentially boosting local economies through increased tourism and related activities. 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)