Bill: HB 1717, 84(R) - 2015

Committee

House Ways & Means

Vote Recommendation

Vote Recommendation Economic Freedom Property Rights Personal Responsibility Limited Government Individual Liberty
No Negative Neutral Neutral Negative Neutral

Author(s)

Rene Oliveira

Bill Caption

Relating to the use of municipal hotel occupancy taxes by certain municipalities for ecological and space exploration-related tourism.

Fiscal Notes

A fiscal note dated April 30, 2015 anticipates no fiscal implication to the State.

The fiscal not adds that City South Padre Island, the only city that would qualify under the bill's provisions, would be given the discretion to allocate revenues collected from the municipal hotel occupancy tax for the promotion of ecological and space exploration-related tourism.

Bill Analysis

House Bill 1717 would amend Chapter 351 of the Tax Code relating to municipal hotel occupancy taxes to allow an eligible barrier island coastal municipality to use revenue from the municipal hotel occupancy tax to pay for promotion and expenses related to ecological tourism events if these events are mainly attended by tourists and increase economic activity at hotels in and around the municipality, and to pay for expenses related to the acquisition of sites and construction and repair of facilities to observe and learn about spacecraft and spaceport activities and operations.

The bill would authorize such a municipality to use not more than the greater of 15 percent of the revenues from the municipal hotel occupancy tax, or the amount of tax received by the municipality at the rate of one percent of the cost of a room.

Vote Recommendation Notes

House Bill 1717 would provide that an eligible barrier island municipality be able to use revenues from the municipal hotel occupancy tax to pay for promotion and expenses related to ecological tourism events, and for expenses related to acquisition of sites, as well maintenance of facilities, for spaceport activities.

According to the statement of intent for the bill, "SpaceX recently announced its decision to build a commercial space launch facility at Boca Chica Beach, just south of South Padre Island. Once open, the facility is expected to have at least eight launches per year."

House Bill 1717 seeks to authorize the city of South Padre Island to use revenues from the municipal hotel occupancy tax to subsidize ecological tourism events and space launch viewing facilities in order to grow tourism. Basically, local tourists, or any visitor that needs to spend a night in a hotel room would be forced to subsidize these activities every time they spend a night in a hotel room in that city, whether they take part in these activities or not.

The role of a limited government is not to grow tourism or to subsidize certain events at the expense of others with taxpayer money. If the concern of the city of South Padre Island is to see more tourists come and visit, the repeal of the municipal hotel occupancy tax would encourage individuals to stay longer in hotels and to spend more of their money -- that would have otherwise been paid in taxes -- within the local economy, and in tourism events and activities. Such a situation would benefit tourists, municipalities and their communities and would also favor a limited government and the free market system.

As a consequence, we oppose HB 1717.

The second chamber sponsor is Senator Eddie Lucio, Jr.


Source URL (retrieved on 04/25/2024 02:04 AM): http://reports.texasaction.com/bill/84r/hb1717?print_view=true