Bill: SB 1393, 86(R) - 2019

Committee

Senate Natural Resources & Economic Development

2nd Chamber 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)

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.


Source URL (retrieved on 03/28/2024 04:03 PM): http://reports.texasaction.com/bill/86r/sb1393?print_view=true