Bill: SB 1354, 85(R) - 2017
Committee
Senate Natural Resources & Economic Development
Vote Recommendation
Vote Recommendation |
Economic Freedom |
Property Rights |
Personal Responsibility |
Limited Government |
Individual Liberty |
No |
Negative |
Neutral |
Neutral |
Negative |
Neutral |
Author(s)
Royce West
Bill Caption
Relating to the authority of certain municipalities to pledge certain tax revenue for the payment of obligations related to hotel projects.
Fiscal Notes
An impact of $0 through the biennium ending August 31, 2019.
However, there would be a negative impact of $660,000 through the bienniumending
August 31, 2021.
Bill Analysis
Under current law, specified municipalities are permitted to use revenues from the hotel occupancy tax to finance hotel equipment and ancillary facilities (including restaurants, shops, parking, and utilities near the hotel project). SB 1354 is a local bill that would also apply this provision to the City of Cedar Hill.
Vote Recommendation Notes
Although this bill is local in nature, SB 1354 infringes on the principles of limited government and the free market by expanding the application of market distorting provisions that allow cities to finance hotels, restaurants, shops, parking, and utilities with hotel occupancy tax revenue. For this reason, we oppose SB 1354.
Organizations Supporting
Texas Hotel and Lodging Association