BILL ANALYSIS Senate Research Center S.B. 1071 89R9683 JBD-D By: Eckhardt Economic Development 4/11/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT State law authorizes certain counties to impose a hotel occupancy taxrevenue from which is primarily to promote tourism and local attractions. Hotels and convention centers are important economic drivers for local communities. They can attract tourists, business travelers, and conventions, which can generate significant economic activity through increased spending at local businesses, job creation, and tax revenue. Section 351.157, Tax Code, authorizes municipalities to collect certain tax revenue on restaurants, bars, retail establishments, swimming pools, and facilities that are within 1,000 feet of a qualified hotel or convention center and are constructed on or after the date the municipality commences a qualified project. S.B. 1071 seeks to add the city of Pflugerville to Section 351.157, Tax Code, and authorize the city to retain its sales, use, and hotel occupancy tax revenue generated by a hotel project, along with eligible tax proceeds, for 10 years. This legislation is supported by the city of Pflugerville. There is no known opposition to this bill. As proposed, S.B. 1071 amends current law relating to the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 351.152, Tax Code, as follows: Sec. 351.152. APPLICABILITY. Provides that this Subchapter C (Municipal Hotel and Convention Center Projects) applies only to: (1)-(63) makes no changes to these subdivisions; (64) makes a nonsubstantive change to this subdivision; and (65) a municipality that has a population of 10,000 or more but less than 75,000; is located in two counties, one of which is a county in which the State Capitol is located; and hosts an annual German festival. SECTION 2. Amends Section 351.157(b), Tax Code, to include a municipality described by Section 351.152(65) among the municipalities to which Section 351.157 (Additional Entitlement for Certain Municipalities) applies. SECTION 3. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1071
89R9683 JBD-D By: Eckhardt
Economic Development
4/11/2025
As Filed
Senate Research Center
S.B. 1071
89R9683 JBD-D
By: Eckhardt
Economic Development
4/11/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
State law authorizes certain counties to impose a hotel occupancy taxrevenue from which is primarily to promote tourism and local attractions. Hotels and convention centers are important economic drivers for local communities. They can attract tourists, business travelers, and conventions, which can generate significant economic activity through increased spending at local businesses, job creation, and tax revenue.
Section 351.157, Tax Code, authorizes municipalities to collect certain tax revenue on restaurants, bars, retail establishments, swimming pools, and facilities that are within 1,000 feet of a qualified hotel or convention center and are constructed on or after the date the municipality commences a qualified project. S.B. 1071 seeks to add the city of Pflugerville to Section 351.157, Tax Code, and authorize the city to retain its sales, use, and hotel occupancy tax revenue generated by a hotel project, along with eligible tax proceeds, for 10 years.
This legislation is supported by the city of Pflugerville. There is no known opposition to this bill.
As proposed, S.B. 1071 amends current law relating to the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 351.152, Tax Code, as follows:
Sec. 351.152. APPLICABILITY. Provides that this Subchapter C (Municipal Hotel and Convention Center Projects) applies only to:
(1)-(63) makes no changes to these subdivisions;
(64) makes a nonsubstantive change to this subdivision; and
(65) a municipality that has a population of 10,000 or more but less than 75,000; is located in two counties, one of which is a county in which the State Capitol is located; and hosts an annual German festival.
SECTION 2. Amends Section 351.157(b), Tax Code, to include a municipality described by Section 351.152(65) among the municipalities to which Section 351.157 (Additional Entitlement for Certain Municipalities) applies.
SECTION 3. Effective date: upon passage or September 1, 2025.