Relating to the authority of certain municipalities to use certain tax revenue for certain qualified projects.

SB 2947 amends Texas tax law to allow specific municipalities to use certain tax revenues for qualified projects. It applies only to cities with populations between 5,000 and 40,000, cities adjacent to another state, or cities in counties containing part of the Lyndon B. Johnson National Grassland. The bill updates Section 351.1015(b) of the Tax Code to establish this authority, without specifying eligible projects. The change takes effect September 1, 2025. This policy adjustment directly affects eligible municipalities by expanding their flexibility in allocating designated tax funds.