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Relating to the imposition and rate of the county hotel occupancy tax in certain counties; authorizing the imposition of a tax.
No fiscal implication to the State is anticipated.
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.
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.