Bill Caption

Relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax.

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

SB 696 would allow Atascosa County to impose a hotel occupancy tax to fund "construction, enlarging, equipping, improvement, maintenance, repairing, and operation of a civic center with an arena used for rodeos, livestock shows, and agricultural expositions to substantially enhance hotel activity and encourage tourism."

Vote Recommendation Notes

SB 696 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 696.