SB 2747 Texas Senate · 89th Legislature (2025)

Relating to limitations applicable to certain agreements providing for a rebate of municipal sales and use taxes or a grant or loan based on those taxes.

SB 2747 restricts municipalities from entering agreements that provide tax rebates, grants, or loans based on sales tax revenue to incentivize retailers to relocate or open new locations within the municipality. It specifically targets agreements where a retailer (or its affiliated group) moves a business from one Texas municipality to another, or establishes a new location, resulting in tax revenue shifting away from the original municipality. The bill prohibits such agreements unless they change the economic position of the retailer beyond tax considerations (though the full requirement is truncated in the text). This directly affects retailers, their affiliated groups, and municipalities seeking to use tax incentives for economic development.

Issues: ✗ Budget & Taxes

Sub-Topics: Revenue Sales Tax Tax Incentives

Bill status passed 3 of 5 stages cleared

Introduction

Mar 2025

Committee Review

May 2025

Senate Passage

May 2025

House Passage

Governor

Introduced Mar 13, 2025 Last action May 26, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 6 edits · May 14, 2025

MODERATE

This bill was substantially rewritten to clarify and expand its scope, now explicitly covering both existing businesses relocating and new businesses establishing operations in a municipality. The changes add new definitions for 'affiliated groups' and 'retailers', introduce stricter requirements that agreements must change a business's economic position beyond just tax benefits, and establish enforcement mechanisms allowing the comptroller to revoke permits if violations occur.

Scope change

The bill's scope was expanded from general business relocation agreements to specifically include retailers and their affiliated groups, and now covers both relocation of existing businesses and establishment of new places of business.

DEFINITION

Added explicit definition of 'affiliated group' referencing Section 171.0001 and clarified applicability to retailers and their affiliated group members.

ELIGIBILITY

Expanded eligibility criteria to include both relocation of existing places of business and establishment of new places of business for retailers and affiliated group members.

REQUIREMENT

Added new substantive requirements that agreements must change the economic position of the business beyond tax benefits and must have a substantial purpose other than tax benefits.

ENFORCEMENT

Added enforcement provisions allowing the comptroller to disregard relocated business locations and revoke sales tax permits if the municipality violates the new requirements.

TIMELINE

Changed effective date from September 1, 2025 to September 1, 2025 (unchanged in final version, but section numbering and structure were reorganized).

TECHNICAL

Removed original bill text formatting and replaced with clean, properly structured legislative language.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 23, 2025

Lower · Passed

Committee report sent to Calendars

lower

May 22, 2025

Lower · Passed

Committee report distributed

lower

May 20, 2025

Lower · Passed

Reported favorably w/o amendment(s)

lower

May 16, 2025

Committee

Referred to Ways & Means

lower

May 16, 2025

Introduced

Read first time

lower

May 14, 2025

Introduced

Received from the Senate

lower

May 14, 2025

Upper · Passed

Passed

upper

May 5, 2025

Upper · Passed

Committee report printed and distributed

upper

May 5, 2025

Upper · Passed

Reported favorably as substituted

upper

Apr 29, 2025

Upper · Passed

Vote taken in committee

upper

Apr 23, 2025

Upper · Passed

Left pending in committee

upper

Apr 23, 2025

Upper · Passed

Testimony taken in committee

upper

Apr 3, 2025

Committee

Referred to Economic Development

upper

Apr 3, 2025

Introduced

Read first time

upper

2 primary · 0 co-sponsors