The bill, S.B. No. 1517, seeks to amend the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects. Specifically, it modifies Section 351.152 to include new criteria for municipalities eligible to receive such tax revenue. 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 removes a previous category (64) that specified certain conditions for municipalities that are county seats bordering the Rio Grande and containing a historic military fort.

Furthermore, the bill amends Section 351.157(b) to update the list of municipalities eligible for specific provisions related to tax revenue from hotel and convention center projects. This includes the addition of the newly defined municipality (65) while also removing the previous reference to category (19). The bill is designed to enhance the financial capabilities of municipalities in promoting tourism and development through hotel and convention center projects, thereby potentially boosting local economies. The act will take effect immediately if it receives a two-thirds majority vote in both houses; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Tax Code 351.152, Tax Code 351.157 (Tax Code 351)