S.B. No. 1703 amends Section 351.152 of the Texas Tax Code to expand the applicability of certain tax revenue derived from hotel and convention center projects to additional municipalities. The bill introduces new criteria for eligibility, including municipalities with populations over 130,000 but less than 1.3 million that are located in three counties, each with populations exceeding 900,000. Additionally, it removes a previous provision that allowed municipalities to qualify based on being the county seat of a county with a population of 60,000 or less that borders the Rio Grande and contains a historic military fort.

The bill aims to enhance the economic development potential of municipalities by allowing them to utilize tax revenue from hotel and convention center projects more effectively. By broadening the criteria for eligibility, the legislation seeks to support a wider range of municipalities in leveraging tourism and convention activities to boost local economies. The act will 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 351.157 (Tax Code 351)
Senate Committee Report: Tax Code 351.152 (Tax Code 351)