SB 1719

83(R) - 2013
Economic & Small Business Development

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Joe Moody

Bill Caption

Relating to the construction, remodeling, or rehabilitation of certain hotel projects.

Fiscal Notes

No fiscal implication to the State is anticipated. The bill would allow the owner of a qualified hotel project undertaken in the City of El Paso to enter an agreement with units of local government to receive, for a period not to exceed 10 years pursuant to Section 2303.5055, Government Code, a rebate, refund, or payment of proceeds from eligible local taxes including hotel occupancy taxes, ad valorem taxes, sales and use taxes, and mixed beverage taxes generated, paid, or collected by the hotel or by businesses located at the hotel. There could be an indeterminate revenue loss to units of local government depending on the number of qualified hotel projects that may become eligible for receipt of such tax revenues under the bill's provisions.

Bill Analysis

Summary: SB 1719 would permit a hotel that is constructed or refurbished in a city of more than 500,000 people and borders Mexico to be governed by the Texas Transportation Corporation Act, allowing a city or non-profit operated by the city government to manage the hotel project. These hotel projects would receive obligations from hotel occupancy taxes and bonds from city tax revenue.

Analysis: This legislation would provide preferential tax treatment for certain hotel projects. We generally do not support preferential tax treatment that is targeted to a specific business or industry. However, this is also a local matter and does not impact state funds. We are neutral on this legislation.