TX SB1425

Extends the period during which municipalities described by Section 351.152(46) can receive state tax revenue from qualified hotel and convention center projects from 10 years to 20 years after the hotel opens for initial occupancy

Extends the comptroller's review period for these specific municipalities from the 20th anniversary to the 40th anniversary of the qualified hotel's opening date to determine if the municipality received more state tax revenue than the state

Requires municipalities to repay the state if they received more tax revenue during their entitlement period than the state received during the subsequent review period (years 20-40 for Section 351.152(46) municipalities)

Maintains the existing 10-year entitlement period and 20-year review timeline for all other municipalities not covered by Section 351.152(46)

Takes effect immediately with a two-thirds vote of both legislative chambers, otherwise becomes effective September 1, 2025