TX SB2532

Defines "eligible coastal municipality" as a municipality described under Section 351.001(3)(A) that has created a park board of trustees under Local Government Code Section 306.011

Creates a new "misspent hotel occupancy tax revenue" definition that includes hotel occupancy tax revenue spent for unauthorized purposes plus any other money received from a park board of trustees and spent by the municipality during the preceding tax year

Establishes a "misspent hotel occupancy tax revenue rate" calculated by dividing misspent hotel occupancy tax revenue by the current total taxable value

Modifies the voter-approval tax rate formula for eligible coastal municipalities to subtract the misspent hotel occupancy tax revenue rate from the calculation, effectively lowering the tax rate ceiling when municipalities misspend these funds

Takes effect January 1, 2026, and applies to ad valorem taxes imposed for tax years beginning on or after that date