Bill

HB 1633

86(R) - 2019
House Ways & Means
Senate Natural Resources & Economic Development
House Ways & Means
Senate Natural Resources & Economic Development
Taxation
Wilson County

Vote Recommendation

No
  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral

Author(s)

John Kuempel

Sponsor(s)

Judith Zaffirini

Bill Caption

Relating to the imposition and rate of the county hotel occupancy tax in certain counties; authorizing the imposition of a tax.

Fiscal Notes

No fiscal implication to the State is anticipated. 

Bill Analysis

HB 1633 would allow Wilson County to impose a hotel occupancy tax, with a seven percent cap on the price paid per room and a further two percent cap if the hotel is in a municipality which already imposes a hotel occupancy tax. 

Vote Recommendation Notes

Texas Action opposes HB 1633 for violating the principles of limited government and free markets. We generally oppose creation or expansion of hotel and occupancy taxes. First, funding projects through the hotel and occupancy tax (HOT) offers little transparency—lawmakers have no way to verify whether the disincentive caused by the high cost of the HOT is offset by gains elsewhere in the tourism industry. Second, the tourism and travel industry, like any other private industry, should not rely on taxpayer subsidies in order to flourish. The best economic model is one in which regulation is light, sensible, and transparent.