The bill, S.B. No. 2565, amends the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects. It specifically updates Section 351.152 to include new criteria for municipalities eligible to receive these funds. Notably, it adds a new category for municipalities with a population of 240,000 or more that border a man-made lake with a surface area exceeding 20,000 acres. Additionally, it modifies the existing list of municipalities by removing a previous category related to county seats with specific population and geographic criteria.

Furthermore, the bill amends Section 351.157(b) to include the newly added municipality category (65) in the list of municipalities eligible for certain tax revenue. This change aims to enhance the financial resources available for local development projects, particularly those related to tourism and convention facilities. The bill is set to take effect immediately upon receiving a two-thirds majority vote in both houses or on September 1, 2025, if that threshold is not met.

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