BILL ANALYSIS Senate Research Center S.B. 2955 By: Parker Economic Development 4/10/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The Town of Addison, home to just 17,000 residents, welcomes a daily workforce of over 80,000 and packs more than 12 million square feet of office space into just four square milesmaking it one of the densest office markets in the Dallas-Fort Worth metroplex. Over 90 percent of the town's revenue comes from its thriving commercial base, drawn by Addison's central location, tollway access, Addison Airport, and vibrant dining and entertainment scene. However, a growing shortage of high-quality hotels and meeting space has emerged as a major concern for corporate partners and is driving convention and hospitality business to competing cities. To address this, Addison is proposing a boutique 170-room hotel with 20,000 square feet of premium meeting space, anchoring a new entertainment district that will serve businesses, attract visitors, and strengthen Addison's standing as a regional economic hub. S.B. 2955 would grant the Town of Addison eligibility to participate in the State of Texas's Qualified Hotel Project (QHP) program. The QHP program has a proven track record of enabling successful developments across Texas by supporting projects that generate substantial economic and tourism benefits. Granting Addison access to this program will: address a real infrastructure gap that threatens the town's ability to retain and grow its business base, generate new tax revenues through hotel occupancy, sales, and property taxes, support the creation of a destination-oriented hotel and meeting space that serves local, regional, and statewide economic needs, and create a competitive and level playing field by giving Addison the same tools that other Texas cities already use to attract premier development. S.B. 2955 is a targeted, fiscally responsible approach to economic development that supports one of the highest-performing employment centers in North Texas. It equips Addison to compete for and retain the businesses that form the backbone of its local economy. As proposed, S.B. 2955 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 Subchapter C (Municipal Hotel and Convention Center Projects) applies only to certain municipalities, including a municipality with a population of 16,000 or more, that is located entirely within a county with a population of 2.6 million or more, and that is labeled as a "town" in the most recent United States Census. Makes 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, including a municipality described by Section 351.152(65) (relating to a municipality with a population of 16,000 or more located in a certain county), and to make nonsubstantive changes. SECTION 3. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2955
By: Parker
Economic Development
4/10/2025
As Filed
Senate Research Center
S.B. 2955
By: Parker
Economic Development
4/10/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The Town of Addison, home to just 17,000 residents, welcomes a daily workforce of over 80,000 and packs more than 12 million square feet of office space into just four square milesmaking it one of the densest office markets in the Dallas-Fort Worth metroplex. Over 90 percent of the town's revenue comes from its thriving commercial base, drawn by Addison's central location, tollway access, Addison Airport, and vibrant dining and entertainment scene. However, a growing shortage of high-quality hotels and meeting space has emerged as a major concern for corporate partners and is driving convention and hospitality business to competing cities. To address this, Addison is proposing a boutique 170-room hotel with 20,000 square feet of premium meeting space, anchoring a new entertainment district that will serve businesses, attract visitors, and strengthen Addison's standing as a regional economic hub.
S.B. 2955 would grant the Town of Addison eligibility to participate in the State of Texas's Qualified Hotel Project (QHP) program. The QHP program has a proven track record of enabling successful developments across Texas by supporting projects that generate substantial economic and tourism benefits.
Granting Addison access to this program will: address a real infrastructure gap that threatens the town's ability to retain and grow its business base, generate new tax revenues through hotel occupancy, sales, and property taxes, support the creation of a destination-oriented hotel and meeting space that serves local, regional, and statewide economic needs, and create a competitive and level playing field by giving Addison the same tools that other Texas cities already use to attract premier development.
S.B. 2955 is a targeted, fiscally responsible approach to economic development that supports one of the highest-performing employment centers in North Texas. It equips Addison to compete for and retain the businesses that form the backbone of its local economy.
As proposed, S.B. 2955 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 Subchapter C (Municipal Hotel and Convention Center Projects) applies only to certain municipalities, including a municipality with a population of 16,000 or more, that is located entirely within a county with a population of 2.6 million or more, and that is labeled as a "town" in the most recent United States Census. Makes 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, including a municipality described by Section 351.152(65) (relating to a municipality with a population of 16,000 or more located in a certain county), and to make nonsubstantive changes.
SECTION 3. Effective date: upon passage or September 1, 2025.