Senate Bill No. 2622, introduced by King and reported favorably by the Committee on Economic Development, seeks to amend Section 351.152 of the Texas Tax Code to expand the authority of certain municipalities to utilize tax revenue generated from hotel and convention center projects. The bill outlines specific criteria for municipalities that qualify for this authority, including population thresholds and geographical characteristics. Notably, the bill adds new criteria for eligibility, specifically introducing a new category for 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, the bill removes a previous 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, thereby streamlining the eligibility requirements. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will take effect on September 1, 2025. This legislation aims to enhance the economic development potential of eligible municipalities by allowing them to leverage tax revenues for local projects.

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