Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
Relating to the use of municipal hotel occupancy tax revenue in
No fiscal implication to the State is anticipated.
HB 2199 would allow the City of Carrizo Springs to use revenue from the municipal hotel occupancy tax to fund the the construction, enlarging, equipping, improvement, maintenance, repairing, and operation of an arena used for rodeos, livestock shows, and agricultural expositions to substantially enhance hotel activity and encourage tourism.
Texas Action opposes HB 2199 for violating the principles of limited government and free markets. We generally oppose the 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.