S.B. No. 1703 aims to amend the Tax Code regarding the authority of certain municipalities to utilize tax revenue generated from hotel and convention center projects. The bill updates Section 351.152 to specify the municipalities eligible for this authority, including various population thresholds and geographic criteria. Notably, it introduces new criteria for municipalities, such as those with populations over 130,000 but less than 1.3 million located in three counties, each with populations exceeding 900,000. Additionally, it removes a previous criterion related to municipalities that are the county seat of a county with a population of 60,000 or less bordering the Rio Grande, which also includes a historic military fort.

The bill is structured to enhance the economic development potential of municipalities by allowing them to leverage tax revenues for projects that can attract tourism and business. The proposed changes reflect a targeted approach to support municipalities that meet specific demographic and geographic characteristics, thereby promoting growth in areas that may benefit from increased investment in hospitality and convention infrastructure. 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 351.157 (Tax Code 351)
Senate Committee Report: Tax Code 351.152 (Tax Code 351)