S.B. No. 2622, introduced by Senator King, amends Section 351.152 of the Texas Tax Code to expand the list of municipalities eligible to utilize certain tax revenue derived from hotel and convention center projects. The bill adds new criteria for eligibility, including municipalities with a population of 47,000 or more that are located in two counties—one with a population of 2.1 million or more and the other with a population of 179,000 or more, and that are bisected by State Highway 174. 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 historic military fort.

The bill aims to provide greater flexibility and support for municipalities in leveraging tax revenue for development projects that can enhance local economies. If passed, the act will take effect immediately upon receiving a two-thirds majority vote in both houses; 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)