BILL ANALYSIS Senate Research Center S.B. 2133 89R14906 CJD-D By: Hinojosa, Juan "Chuy" Economic Development 4/10/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Chapter 351, Subchapter C of the Tax Code entitles certain cities to receive rebates of state taxes if the cities use their municipal hotel occupancy tax revenue in connection with a "qualified project." A qualified project is a project to acquire, construct, repair, remodel, expand, or equip a qualified convention center facility, a qualified hotel, and/or certain restaurants bars, retail establishments, spas, and parking areas or structures not more than 1,000 feet from the qualified convention center facility or qualified hotel. A city can receive rebates for 10 years after a project is open for initial occupancy. The McAllen Convention Center consists of an 18.5-acre complex which hosts over 450 events each year and has an average attendance of 600,000 attendees annually. The increasing number of visitors each year to events at the McAllen Convention Center and the Performing Arts Center has increased the need for more parking. S.B. 2133 would amend Section 351.152 of the Tax Code to add the City of McAllen to the list of cities entitled to receive rebates of state taxes in connection with a qualified project under Subchapter C, Chapter 351, Tax Code. As proposed, S.B. 2133 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 Occupancy Taxes) applies to certain municipalities, including a municipality described by Section 334.0082(a)(2)(relating to providing that Section 334.0082 (Venue Projects in Certain Municipalities) applies only to a municipality that is located in a county adjacent to the Texas-Mexico Border), Local Government Code. Makes nonsubstantive changes. SECTION 2. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2133
89R14906 CJD-D By: Hinojosa, Juan "Chuy"
Economic Development
4/10/2025
As Filed
Senate Research Center
S.B. 2133
89R14906 CJD-D
By: Hinojosa, Juan "Chuy"
Economic Development
4/10/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Chapter 351, Subchapter C of the Tax Code entitles certain cities to receive rebates of state taxes if the cities use their municipal hotel occupancy tax revenue in connection with a "qualified project." A qualified project is a project to acquire, construct, repair, remodel, expand, or equip a qualified convention center facility, a qualified hotel, and/or certain restaurants bars, retail establishments, spas, and parking areas or structures not more than 1,000 feet from the qualified convention center facility or qualified hotel. A city can receive rebates for 10 years after a project is open for initial occupancy.
The McAllen Convention Center consists of an 18.5-acre complex which hosts over 450 events each year and has an average attendance of 600,000 attendees annually. The increasing number of visitors each year to events at the McAllen Convention Center and the Performing Arts Center has increased the need for more parking.
S.B. 2133 would amend Section 351.152 of the Tax Code to add the City of McAllen to the list of cities entitled to receive rebates of state taxes in connection with a qualified project under Subchapter C, Chapter 351, Tax Code.
As proposed, S.B. 2133 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 Occupancy Taxes) applies to certain municipalities, including a municipality described by Section 334.0082(a)(2)(relating to providing that Section 334.0082 (Venue Projects in Certain Municipalities) applies only to a municipality that is located in a county adjacent to the Texas-Mexico Border), Local Government Code. Makes nonsubstantive changes.
SECTION 2. Effective date: upon passage or September 1, 2025.