Senate Bill No. 2565, introduced by West and reported favorably by the Committee on Economic Development, seeks to amend Section 351.152 of the Texas Tax Code, which outlines the applicability of certain tax revenue regulations for municipalities involved in hotel and convention center projects. The bill expands the list of municipalities eligible to utilize specific tax revenues by adding new criteria and designations. Notably, it introduces a new category for municipalities with a population of more than 240,000 but less than 270,000 that border a man-made lake with a surface area exceeding 20,000 acres. Additionally, it removes a previous category related to municipalities that are the county seat of a county with a population of 60,000 or less and that borders the Rio Grande, thereby streamlining the eligibility criteria.

The bill aims to enhance the economic development potential of municipalities by allowing them to leverage tax revenues from hotel and convention center projects more effectively. By broadening the scope of eligible municipalities, the legislation seeks to promote tourism and related economic activities in various regions of Texas. The bill is set to take effect immediately upon receiving a two-thirds majority vote in both houses or on September 1, 2025, if such a vote is not achieved.

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