Bill > HB5625

This bill amends the Texas Tax Code to expand the authority of certain municipalities and local government corporations to use tax revenue for qualified projects. Specifically, the bill broadens the applicability of Section 351.105 to include municipalities with populations between 650,000 and 750,000, as well as municipalities with at least 750,000 residents located on the Texas/Mexico border. Additionally, the bill allows local government corporations meeting specific criteria to act as municipalities for tax revenue purposes. For such local government corporations, a "qualified project" now includes venues and related infrastructure, but only if the corporation is authorized to collect municipal hotel occupancy tax and is located in a county on the Texas/Mexico border with a population between 860,000 and 950,000. This expansion provides more flexibility for local governments in certain urban and border areas to use tax revenues for specific development projects. The bill is set to take effect on September 1, 2025.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5625