Bill > SB1425

This bill modifies Texas tax code provisions related to municipal entitlements from hotel and convention center projects, specifically extending the revenue collection period for certain municipalities. Under the current law, municipalities are generally entitled to receive tax revenue from a qualified hotel project for 10 years after its initial occupancy. The bill creates an exception for a specific type of municipality (referenced by Section 351.152(46)) that would now be entitled to receive such tax revenue for 20 years instead of 10. Additionally, for these special municipalities, the bill introduces a new provision allowing for a further review at the 40-year mark, where the state comptroller will calculate the total state tax revenue received and compare it against the municipal revenue. If the state's revenue is less than the municipal revenue during specified periods, the municipality will be required to remit the difference back to the state through monthly payments. These changes appear designed to provide longer-term financial benefits to certain municipalities while also maintaining a mechanism for financial accountability and potential revenue recoupment by the state. The bill would take effect immediately if it receives a two-thirds vote in the Texas legislature, or otherwise on September 1, 2025.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1425