The bill, S.B. No. 1556, amends the Texas Tax Code to expand the authority of certain municipalities to utilize specific tax revenues for hotel and convention center projects. The amendments to Section 351.152 introduce new eligibility criteria for municipalities, including the addition of a new category for municipalities with a population of 7,000 or more that contain Lake Marble Falls. Additionally, the bill removes a previous eligibility criterion related to municipalities that are the county seat of a county with a population of 60,000 or less that borders the Rio Grande, while retaining other existing categories.

Furthermore, Section 351.153(a) is updated to include the newly added municipality category (65) alongside existing categories (5), (6), and (29) that qualify for the use of tax revenue for these projects. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature 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)