S.B. No. 2133, introduced by Hinojosa, amends Section 351.152 of the Texas Tax Code to expand the authority of certain municipalities to utilize specific tax revenues for hotel and convention center projects. The bill outlines a comprehensive list of municipalities that qualify under this provision, including those with populations ranging from less than 10,000 to over 750,000, and specifies various geographic and demographic criteria that must be met. Notably, the bill deletes a previous provision regarding municipalities that are the county seat of a county with a population of 60,000 or less that borders the Rio Grande and adds a new category for municipalities described by Section 334.0082(a)(2) of the Local Government Code.

The bill aims to enhance the economic development potential of these municipalities by allowing them to invest in infrastructure that supports tourism and convention activities. The changes are designed to provide greater flexibility and opportunities for municipalities to leverage tax revenues for projects that can stimulate local economies and attract visitors. 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)
Senate Committee Report: Tax Code 351.152 (Tax Code 351)