Texas 2025 - 89th Regular

Texas Senate Bill SB2588

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the conversion of all or a portion of a municipal sales and use tax originally adopted for the purpose of sports and community venues to a municipal sales and use tax for economic development purposes.

Impact

The passage of SB2588 could substantially alter the financial landscape for municipalities. By providing a mechanism to repurpose tax revenues, the bill encourages local economies to leverage existing funds for broader economic initiatives, beyond just recreational venues. This flexibility could enhance job creation, attract investments, and bolster overall fiscal health. The bill incites discussions on how best to allocate municipal resources in ways that yield the most significant community benefit.

Summary

SB2588 introduces provisions for municipalities in Texas to convert portions of their municipal sales and use tax, originally adopted for financing sports and community venues, to a tax designated for broader economic development purposes. This bill aims to amend existing tax codes to facilitate these conversions, allowing municipalities to redirect funds towards the promotion and development of new and expanded business enterprises. The conversion process is contingent upon a majority vote from the local electorate, which aligns with the democratic principles of local governance.

Contention

One potential area of contention surrounding SB2588 is the requirement for voter approval before tax conversion. While proponents argue that this ensures local accountability, critics might view this as an impediment to swift economic adaptation. Furthermore, there may be concerns regarding transparency in the allocation of diverted tax revenues, which was initially earmarked for community venues. This could lead to challenges in maintaining public trust and ensuring that the priorities of the community are met in the evolving economic landscape.

Texas Constitutional Statutes Affected

Local Government Code

  • Chapter 334. Sports And Community Venues
    • Section: 089
    • Section: New Section
  • Chapter 504. Type A Corporations
    • Section: New Section
  • Chapter 505. Type B Corporations
    • Section: New Section

Companion Bills

TX HB5124

Identical Relating to the conversion of all or a portion of a municipal sales and use tax originally adopted for the purpose of sports and community venues to a municipal sales and use tax for economic development purposes.

Previously Filed As

TX SB333

Relating to the location where certain sales are consummated for the purpose of municipal sales and use taxes.

TX HB1465

Relating to the location where certain sales are consummated for the purpose of municipal sales and use taxes.

TX HB4981

Relating to eligible central municipalities for purposes of municipal hotel occupancy taxes.

TX HB4039

Relating to the provision of municipal services to land annexed by a municipality for full purposes.

TX HB4531

Relating to the substitution of a county sales and use tax for all or a portion of property taxes imposed by certain counties; authorizing the imposition of a tax.

TX SB543

Relating to the conveyance of property by a municipality for the public purpose of economic development.

TX HB1492

Relating to the conveyance of property by a municipality for the public purpose of economic development.

TX HB5047

Relating to the imposition of sales and use tax after a municipality annexes an area in an emergency services district.

TX SB2435

Relating to the imposition of sales and use tax after a municipality annexes an area in an emergency services district.

TX HB5089

Relating to the location at which certain sales are consummated for purposes of local sales and use taxes.

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