Bill Caption

Relating to the use of hotel occupancy tax revenue by certain municipalities for certain projects.

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

SB 2181 would authorize the City of Dallas to use a hotel occupancy tax to acquire, construct, improve, and equip a venue project such as an amphitheater, arena, exhibit hall, music hall, or stadium within its municipally owned park. No more than 20% of the revenue gained from the venue expansion project may be used for an amphitheater, arena, exhibit hall, music hall, or stadium

Vote Recommendation Notes

SB 2181 violates our principles of limited government and free markets because the hotel occupancy tax distorts the free market by favoring certain businesses over others, raises prices on consumers, and encourages government spending. 

The role of a limited government is not to grow tourism or to subsidize certain events facilities with taxpayer money. Like any city whose concern is to see more tourists come and visit, a better solution would be to reduce taxes and fees which 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. Such a situation would benefit tourists, municipalities, and their communities, and would also favor a limited government and the free market system.

For these reasons, Texas Action opposes SB 2181.