BILL ANALYSIS Senate Research Center S.B. 1444 89R9687 JBD-F By: Campbell Economic Development 4/11/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Under current law, certain municipalities in Texas are authorized to receive a rebate for a period of 10 years of the state hotel occupancy taxes and state sales taxes collected at certain hotels and, in some cases, at certain qualified commercial retail outlets located within 1,000 feet. To qualify for a rebate, the hotel must, among other things, be located within 1,000 feet of a city-owned convention center facility and, in some cases, on land owned by a city. The rebated taxes can be used by a city to service bonds or other obligations incurred for the construction of the project. After the 10-year period has elapsed, the rebates cease, and all state hotel taxes and state sales taxes collected are deposited to the state's general revenue fund. Convention centers and convention center hotels assist the state economy by attracting out-of-state conventions, business meetings, and visitors to Texas in addition to assisting with local revitalization and development efforts. Having an adequate supply of hotel rooms located near a convention center is critical to event planners and makes Texas more competitive in national and international tourism. Accordingly, S.B. 1444 seeks to extend the entitlement to receive those rebates to any city through which the Comal River flows. As proposed, S.B. 1444 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, to provide that Subchapter C (Municipal Hotel and Convention Center Projects) applies only to certain municipalities, including a municipality through which the Comal River flows, and to make nonsubstantive changes. SECTION 2. Amends Section 351.157(b), Tax Code, to provide that Section 351.157 (Additional Entitlement for Certain Municipalities) applies only to certain municipalities described by certain subdivisions of Section 351.152 (Applicability), including a municipality described by Section 351.152(65) (relating to a municipality through which the Comal River flows), and to make nonsubstantive changes. SECTION 3. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1444
89R9687 JBD-F By: Campbell
Economic Development
4/11/2025
As Filed
Senate Research Center
S.B. 1444
89R9687 JBD-F
By: Campbell
Economic Development
4/11/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Under current law, certain municipalities in Texas are authorized to receive a rebate for a period of 10 years of the state hotel occupancy taxes and state sales taxes collected at certain hotels and, in some cases, at certain qualified commercial retail outlets located within 1,000 feet. To qualify for a rebate, the hotel must, among other things, be located within 1,000 feet of a city-owned convention center facility and, in some cases, on land owned by a city. The rebated taxes can be used by a city to service bonds or other obligations incurred for the construction of the project. After the 10-year period has elapsed, the rebates cease, and all state hotel taxes and state sales taxes collected are deposited to the state's general revenue fund.
Convention centers and convention center hotels assist the state economy by attracting out-of-state conventions, business meetings, and visitors to Texas in addition to assisting with local revitalization and development efforts. Having an adequate supply of hotel rooms located near a convention center is critical to event planners and makes Texas more competitive in national and international tourism.
Accordingly, S.B. 1444 seeks to extend the entitlement to receive those rebates to any city through which the Comal River flows.
As proposed, S.B. 1444 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, to provide that Subchapter C (Municipal Hotel and Convention Center Projects) applies only to certain municipalities, including a municipality through which the Comal River flows, and to make nonsubstantive changes.
SECTION 2. Amends Section 351.157(b), Tax Code, to provide that Section 351.157 (Additional Entitlement for Certain Municipalities) applies only to certain municipalities described by certain subdivisions of Section 351.152 (Applicability), including a municipality described by Section 351.152(65) (relating to a municipality through which the Comal River flows), and to make nonsubstantive changes.
SECTION 3. Effective date: upon passage or September 1, 2025.