Relating to the conversion of all or a portion of a municipal sales and use tax originally adopted for the purpose of sports and community venues to a municipal sales and use tax for economic development purposes.

SB 2588 allows Texas municipalities to redirect sales and use tax revenue originally collected for sports and community venues to fund economic development projects, such as attracting new businesses. It requires voter approval via a majority vote in a special election, with ballot language specifically stating the conversion to "promotion and development of new and expanded business enterprises." Municipalities must notify the comptroller 60 days before implementation and can only convert taxes if they meet specific debt obligations as of September 1, 2025. This bill directly affects local governments with existing venue-related taxes seeking to reallocate funds for broader economic growth. The proposal is currently in the Economic Development committee for review.