S.B. No. 1556 amends Section 351.152 of the Texas Tax Code to expand the authority of certain municipalities to utilize specific tax revenues for hotel and convention center projects. The bill outlines a comprehensive list of municipalities that qualify based on various population thresholds and geographical criteria. Notably, it introduces new eligibility criteria, including municipalities with populations of 7,000 or more that contain Lake Marble Falls, and municipalities that are the county seat of a county with a population of 60,000 or less that borders the Rio Grande and hosts a United States military fort listed in the National Register of Historic Places.

The bill also deletes a previous provision regarding municipalities with a population of 35,000 or more that contain a railroad museum and are located in a county with a population of 800,000 or more adjacent to a county with a population of four million or more. This legislative change aims to enhance the economic development potential of eligible municipalities by allowing them to allocate tax revenues towards the construction and expansion of convention center facilities, 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 351.153 (Tax Code 351)
Senate Committee Report: Tax Code 351.152 (Tax Code 351)