Senate Bill No. 1517 aims to expand the authority of certain municipalities in Texas to receive tax revenue generated from hotel and convention center projects. The bill amends Section 351.152 of the Tax Code to include new criteria for municipalities eligible to receive such tax revenue. Notably, it introduces a new category (65) for municipalities that are located in a county with a population of 600,000 or more adjacent to the county containing the State Capitol and have a population between 16,000 and 27,000. Additionally, it removes a previous category (64) that specified municipalities as county seats with certain characteristics related to military forts.

Furthermore, the bill amends Section 351.157(b) to include the newly added municipality category (65) among those eligible for tax revenue related to hotel and convention center projects. This change reflects a broader effort to enhance the economic development potential of smaller municipalities by allowing them to benefit from 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)