TX SB2588

Municipalities with existing sales and use taxes for sports and community venue projects may convert all or a portion of that tax to an economic development tax (under Chapter 504 or Chapter 505) if approved by a majority of voters at an election

Applies only to municipalities that have adopted a venue tax under Chapter 334 and have outstanding bonded indebtedness as of September 1, 2025, for bonds payable from that tax

Conversion takes effect the day after all venue project bonds (including refunding bonds) are paid in full or funds are set aside in a trust account to pay the bonds; municipalities must notify the comptroller at least 60 days before the conversion takes effect

The converted tax rate must be set in increments of one-eighth of one percent and cannot change the combined rate of all local sales taxes in the affected territory

Elections held before the Act's effective date may satisfy the voter approval requirement if the ordinance was published at least 14 days prior and stated the election anticipated enabling legislation