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. It specifically updates Section 351.152 to include new criteria for municipalities eligible to receive these funds. Notably, it adds a new category (65) for municipalities located in a county with a population of 600,000 or more that is adjacent to the county containing the State Capitol, and which has a population between 16,000 and 27,000. Additionally, it modifies the applicability of Section 351.157(b) to include this new category, ensuring that municipalities meeting these criteria can also benefit from the provisions related to tax revenue pledging for project obligations.

The bill also removes certain criteria from the existing law, specifically deleting the previous category (64) that pertained to municipalities that are county seats of smaller counties bordering the Rio Grande and containing a historic military fort. This legislative change aims to streamline the eligibility requirements for municipalities seeking to leverage tax revenue for hotel and convention center projects, thereby potentially enhancing local economic development efforts. 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)