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Relating to the allocation of hotel occupancy tax revenue collected
by certain municipalities.
No fiscal implication to the State is anticipated.
SB 1262 would authorize certain municipalities to levy a hotel occupancy tax to promote tourism and the convention and hotel industry.
Texas Action recommends opposing SB 1262 because it violates limited government principles. 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. It is emphatically not within the proper role of government to use taxation in this manner.
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