S.B. No. 1703 amends Section 351.152 of the Texas Tax Code to expand the applicability of certain tax revenue provisions related to hotel and convention center projects. The bill introduces new criteria for municipalities to qualify for these provisions, including a new category for municipalities with a population of more than 130,000 but less than 1.3 million that are located in three counties, each with a population exceeding 900,000. Additionally, it removes a previous provision that required a municipality to be the county seat of a county with a population of 60,000 or less that borders the Rio Grande, while adding a requirement that such a municipality must also contain a United States military fort listed in the National Register of Historic Places.

The bill aims to enhance the ability of certain municipalities to utilize tax revenue for the development and expansion of hotel and convention center facilities, thereby promoting economic development and tourism in those areas. The changes are designed to reflect the diverse characteristics of municipalities across Texas and to ensure that more cities can benefit from the economic opportunities associated with convention and tourism projects. The act will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will become effective on September 1, 2025.

Statutes affected:
Introduced: Tax Code 351.152, Tax Code 351.157 (Tax Code 351)
Senate Committee Report: Tax Code 351.152 (Tax Code 351)