S.B. No. 2565 amends Section 351.152 of the Texas Tax Code to expand the list of municipalities eligible to utilize certain tax revenue from hotel and convention center projects. The bill introduces new criteria for eligibility, including a municipality with a population of more than 240,000 but less than 270,000 that borders a man-made lake with a surface area exceeding 20,000 acres. Additionally, it removes a previous eligibility criterion related to municipalities that are the county seat of a county with a population of 60,000 or less that borders the Rio Grande and contains a United States military fort listed in the National Register of Historic Places.

The bill aims to enhance the economic development potential of municipalities by allowing them to access tax revenue for projects that can stimulate tourism and local economies. If passed, the act will take effect immediately upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will become effective on September 1, 2025.

Statutes affected:
Introduced: Tax Code 351.152, Tax Code 351.157 (Tax Code 351)
Senate Committee Report: Tax Code 351.152 (Tax Code 351)