The bill, S.B. No. 1703, amends the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects. Specifically, it updates Section 351.152 to include new criteria for municipalities eligible to receive such tax revenue. Notably, it adds a new category (65) for municipalities with populations between 130,000 and 1.3 million that are located in three counties, each with populations exceeding 900,000. Additionally, it modifies existing categories by deleting the previous category (64) related to municipalities that are county seats with specific characteristics, while adding a new requirement for those municipalities to have a military fort listed in the National Register of Historic Places.

Furthermore, the bill amends Section 351.157(b) to specify the municipalities that qualify for certain provisions, including the newly added category (65). The bill aims to enhance the financial capabilities of these municipalities to support hotel and convention center projects, thereby promoting tourism and economic development. 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 351.157 (Tax Code 351)