The bill, S.B. No. 1756, amends the Texas Tax Code to limit the ability of municipalities to pledge or commit tax revenue for hotel and convention center projects. Specifically, it introduces new provisions that allow a municipality to commit revenue for only one qualified project, which includes hotel and multipurpose convention center facility projects. Once a municipality has made such a commitment, it cannot pledge or commit revenue for any subsequent projects. This restriction applies to various sections of the Tax Code, including Sections 351.1015, 351.102, 351.1021, and 351.1022, with specific definitions and conditions outlined for what constitutes a "qualified project."

Additionally, the bill repeals Section 351.155(d) and clarifies that the changes made do not affect the validity of any bonds or obligations that were pledged before the effective date of the Act. The bill is designed to streamline the process for municipalities while ensuring that they do not overextend their financial commitments to multiple projects. 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 351.1015, Tax Code 351.102, Tax Code 351.1021, Tax Code 351.1022, Tax Code 351.106, Tax Code 351.155 (Tax Code 351)