BILL ANALYSIS Senate Research Center S.B. 1556 89R8320 JBD-F By: Flores Economic Development 4/10/2025 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. S.B. 1556 seeks to extend the entitlement for who can receive those rebates to the city of Marble Falls. As proposed, S.B. 1556 amends current law relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects. 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 Subchapter C (Municipal Hotel and Convention Center Projects) applies only to certain municipalities, including a municipality with a population of 7,000 or more that contains Lake Marble Falls. Makes nonsubstantive changes. SECTION 2. Amends Section 351.153(a), Tax Code, to provide that Section 351.153 (Exception to Ownership Requirement) applies only to a municipality described by certain subsections of Section 351.152, including Subsection (65) (relating to providing that Subchapter C applies only to certain municipalities, including a municipality with a population of 7,000 or more that contains Lake Marble Falls), and to make a nonsubstantive change. SECTION 3. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1556
89R8320 JBD-F By: Flores
Economic Development
4/10/2025
As Filed
Senate Research Center
S.B. 1556
89R8320 JBD-F
By: Flores
Economic Development
4/10/2025
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.
S.B. 1556 seeks to extend the entitlement for who can receive those rebates to the city of Marble Falls.
As proposed, S.B. 1556 amends current law relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects.
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 Subchapter C (Municipal Hotel and Convention Center Projects) applies only to certain municipalities, including a municipality with a population of 7,000 or more that contains Lake Marble Falls. Makes nonsubstantive changes.
SECTION 2. Amends Section 351.153(a), Tax Code, to provide that Section 351.153 (Exception to Ownership Requirement) applies only to a municipality described by certain subsections of Section 351.152, including Subsection (65) (relating to providing that Subchapter C applies only to certain municipalities, including a municipality with a population of 7,000 or more that contains Lake Marble Falls), and to make a nonsubstantive change.
SECTION 3. Effective date: upon passage or September 1, 2025.