Texas Senate Bill SB2264

Texas 2019 - 86th Regular

Caption

Relating to the authority of certain municipalities to pledge certain tax revenue for the payment of obligations related to multipurpose convention center facility projects.

Impact

If passed, SB2264 will amend Chapter 351 of the Tax Code by adding Section 351.1021, which will grant qualified municipalities broader financial authority when it comes to municipal bonds. This legislative change would allow municipalities to ensure adequate funding for developing and maintaining convention centers, which could drive tourism and business traffic in regions where such venues are established.

Summary

Senate Bill 2264 seeks to empower certain municipalities in Texas to pledge tax revenues for the funding of multipurpose convention center facility projects. Specifically, the bill defines an 'eligible municipality' and outlines the parameters under which these municipalities can leverage their tax revenues, which includes funds from related infrastructure projects like parking facilities or shuttle systems. The bill emphasizes the interconnected nature of hotels and convention centers, allowing municipalities to utilize funds that could potentially enhance local economic opportunities.

Contention

While proponents argue that SB2264 would open avenues for robust economic development and attract more events to Texas cities, potential concerns have been raised about the implications for local budgets. Opponents may argue that allowing municipalities to pledge future tax revenues could place undue financial strain on localities if projected income does not meet expectations, thereby risking essential services funded by those taxes.