Bill

SB 1393

86(R) - 2019
Senate Natural Resources & Economic Development
House Ways & Means
Senate Natural Resources & Economic Development
House Ways & Means

Contact the Author

Kel Seliger

Phone:

512-463-0131

Capitol Office:

1E.12

Email:

Vote Recommendation

No
  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral

Author(s)

Kel Seliger

Sponsor(s)

Brooks Landgraf

Bill Caption

Relating to the use of municipal hotel occupancy tax revenue in certain municipalities.

Fiscal Notes

No fiscal impact to the state is anticipated. 

Bill Analysis

SB 1393 would authorize the City of Odessa to use the hotel occupancy tax to construct a sports facility on land owned by state universities.

Vote Recommendation Notes

Texas Action opposes SB 1393 on the basis of limited government and free markets. First, funding projects through the hotel and occupancy tax (HOT) offers little transparency—lawmakers have no way to verify whether the disincentive caused by the high cost of the HOT is offset by gains elsewhere in the tourism industry. Second, the tourism and travel industry, like any other private industry, should not rely on taxpayer subsidies in order to flourish. It is emphatically not within the proper role of government to use taxation in this manner.

We recommend following the Texas model and reducing or eliminating the HOT altogether. The best economic model is one in which regulation is light, sensible, and transparent.

Contact the Author

Kel Seliger

Phone:

512-463-0131

Capitol Office:

1E.12

Email: