Relating to the entitlement of certain municipalities to certain tax revenue associated with hotel and convention center projects.

SB 1425 extends the period that qualifying cities can receive hotel tax revenue from 10 to 20 years after a new hotel opens. It requires cities to repay the state if they received more tax revenue than the state collected during the transition period (from year 10 to 20 for standard cities, or year 20 to 40 for cities meeting specific criteria under Section 351.152(46)). The bill amends Texas Tax Code sections to establish these extended entitlement periods and repayment mechanisms. This directly affects cities designated as qualifying under the tax code’s provisions for hotel and convention center projects.