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 provisions, including a stipulation that a municipality may only commit revenue for one qualified project at a time. Once a municipality has made such a commitment, it cannot pledge revenue for another project unless that project is authorized by a new act of the legislature that becomes law on or after January 1, 2026. This applies to various types of projects, including hotel projects, multipurpose convention center facilities, and other qualified projects as defined in the bill.

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, unless authorized by future legislation. The bill also repeals a previous provision in Section 351.155(d) and clarifies that existing obligations related to previously pledged revenue remain valid under the law in effect at the time of the commitment. The changes outlined in this bill 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)