The bill, S.B. No. 1517, 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. Specifically, it updates Section 351.152 to include new criteria for municipalities eligible for these benefits, adding a new category (65) for municipalities located in a county with a population of 600,000 or more adjacent to the county containing the State Capitol, with a population between 16,000 and 27,000. Additionally, it removes a previous category (64) that specified a municipality as the county seat of a smaller county bordering the Rio Grande with a historic military fort.

Furthermore, the bill modifies Section 351.157(b) to include the newly added municipality category (65) among those eligible for the tax revenue benefits, while also retaining several existing categories. The bill aims to enhance the economic development potential of these municipalities by allowing them to leverage tax revenues for convention center projects, thereby promoting tourism and local business growth. The act 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)