S.B. No. 1556 aims to expand the authority of certain municipalities in Texas to utilize specific tax revenues for hotel and convention center projects. The bill amends Section 351.152 of the Tax Code, detailing the municipalities eligible for this authority. Notably, it introduces new criteria for eligibility, including a municipality that is the county seat of a county with a population of 60,000 or less that borders the Rio Grande and contains a United States military fort listed in the National Register of Historic Places. Additionally, it adds a new category for municipalities with a population of 7,000 or more that contain Lake Marble Falls.

The bill also removes a previous provision that allowed for a municipality with a population of 35,000 or more that contains a railroad museum and is located in a county with a population of 800,000 or more and adjacent to a county with a population of four million or more. The proposed changes are designed to enhance the ability of these municipalities to fund and develop tourism-related infrastructure, thereby potentially boosting local economies. 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 351.153 (Tax Code 351)
Senate Committee Report: Tax Code 351.152 (Tax Code 351)