Senate Bill No. 2297, introduced by Paxton, seeks to amend 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 for this authority based on various population thresholds and geographical criteria. Notably, it adds new eligibility criteria, including a municipality with a population of 15,000 or more but less than 30,000 that is bisected by United States Highway 75 and is wholly located in a county with a population of 750,000 or more, which also contains a municipality with a population of one million or more and is adjacent to a county with a population of two million or more.

Additionally, the bill removes a previous criterion that allowed municipalities that are the county seat of a county with a population of 60,000 or less and that borders the Rio Grande to qualify for the same tax revenue authority. The proposed changes aim to enhance the economic development potential of eligible municipalities by allowing them to invest in infrastructure that supports tourism and convention activities. The bill 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)