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Relating to the use of municipal hotel occupancy tax revenue by
No fiscal impact to the state is anticipated.
SB 2137 would authorize municipalities to use the hotel occupancy tax to fund infrastructure within a certain distance of a sporting facility.
Texas Action recommends opposing SB 2137 because it violates principles 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.