Bill Caption

Relating to the use of certain tax revenue to acquire, construct, enhance, upgrade, operate, and maintain convention center facilities, multipurpose arenas, venues, and spaceport and spacecraft observation facilities in certain municipalities.

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

SB 2089 would allow the city of Brownsville to use funds from a hotel occupancy and mixed beverage tax imposed in a project financing zone for the payment of bonds to acquire, lease, construct, improve, enlarge, equip, operate, maintain, and repair spaceports and spacecraft observation facilities or other qualified projects. The municipal government must notify the Comptroller of the designation of a project financing zone and the Comptroller must deposit revenue associated with hotels in a suspense account for the municipality. The municipality would be required to notify the Comptroller if a qualified project is abandoned. The Comptroller would then be required to transfer the amount of money in the suspense account, that exceeds the amount required for the payment of bonds or other obligations, to the general revenue fund.

Vote Recommendation Notes

The role of a limited government is not to grow tourism or to subsidize certain projects with taxpayer money at the expense of others. If the concern of the city of Brownsville 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.

Texas Action opposes SB 2089.