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Relating to the municipal hotel occupancy tax.
From LBB: Estimated Two-year Net Impact to General Revenue Related Funds for SB 2194, As
Introduced: an impact of $0 through the biennium ending August 31, 2021.
However, there would be a negative impact to General Revenue Related Funds beginning
in the biennium ending August 31, 2023.
SB 2194 would add the city of San Benito as a city that is authorized to levy a hotel occupancy tax to promote tourism and the convention and hotel industry.
Texas Action recommends opposing SB 2194 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.