S.B. No. 2955 amends the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects and to pledge this revenue for related financial obligations. The bill updates Section 351.152, which outlines the municipalities eligible for these benefits, by adding new criteria for eligibility and removing outdated provisions. Notably, it introduces a new category for municipalities with a population of 16,000 or more that are entirely within a county with a population of 2.6 million or more and are designated as a "town" in the latest U.S. Census.

Additionally, the bill modifies Section 351.157(b) to include the newly defined municipalities in the list of those eligible for specific tax revenue benefits. The changes aim to enhance the economic development potential of these municipalities by allowing them to leverage tax revenues for convention center projects, thereby promoting tourism and local business growth. The act is set to take effect immediately upon receiving a two-thirds vote from 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)