Senate Bill No. 1756 amends the Texas Tax Code to restrict municipalities' ability to pledge or commit tax revenue for hotel and convention center projects. The bill introduces several new subsections that stipulate a municipality may only commit revenue for one qualified project, which includes hotel and multipurpose convention center facility projects. Once a municipality has made such a commitment, it cannot pledge revenue for any subsequent projects unless those projects are authorized by a new act of the legislature that becomes law on or after January 1, 2026. This provision applies to all municipalities, including local government corporations acting on their behalf.

Additionally, the bill specifies that municipalities with populations over 1.5 million are prohibited from using revenue for certain hotel projects if the related construction or acquisition began after December 1, 2016. The bill also repeals a previous section of the Tax Code and clarifies that existing obligations for which revenue was pledged before the effective date of this Act will remain valid under the law in effect at that time. The changes will take effect on January 1, 2026.

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)
Senate Committee Report: 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)
Engrossed: 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)