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 geographic criteria. Notably, it introduces new eligibility criteria, 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 deletes a previous provision that allowed for a different category of municipalities, thereby streamlining the criteria for eligibility. The changes aim to enhance the ability of municipalities to fund and develop hotel and convention center projects, potentially boosting local economies and tourism. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Tax Code 351.152, Tax Code 351.153 (Tax Code 351)
Senate Committee Report: Tax Code 351.152 (Tax Code 351)