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Relating to the use of municipal hotel occupancy tax revenue in
No fiscal impact to the state is anticipated.
SB 1467 would allow Queen City and San Benito to use hotel occupancy tax revenue to enhance or upgrade sports and recreational facilities.
Texas Action recommends opposing SB 1467 because it infringes upon limited government and free market principles. 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.
We would prefer reducing or eliminating the HOT altogether. The best economic model is one in which regulation is light, sensible, and transparent.