Texas 2023 - 88th Regular

Texas House Bill HB4565

Filed
3/9/23  
Out of House Committee
4/24/23  
Voted on by House
5/2/23  
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the authority of certain municipalities to use hotel occupancy tax revenue for certain venue projects.

Impact

The bill is poised to change state statutes regarding the management of hotel occupancy tax revenues. By permitting Harlingen to impose a new tax, it facilitates financial relief and bolsters economic development initiatives. Proponents argue that this bill will empower local governments to better manage funds for their community enhancements, including improvements to venues and drainage systems. The changes introduced by HB4565 are intended to rectify perceived oversights in the current regulatory framework regarding municipal financial authority over hotel tax revenues.

Summary

House Bill 4565 proposes amendments to the Local Government Code impacting the authority of certain municipalities in Texas to utilize hotel occupancy tax revenue specifically for venue projects, focusing on Harlingen. This bill allows municipalities with populations between 70,000 and 180,000 located near the Gulf of Mexico and bordering the Mexican states to impose a nine percent hotel occupancy tax to support local programs and fund debts associated with convention centers like Harlingen's. By enabling additional revenue, HB4565 aims to enhance community projects and support the financial obligations of local infrastructure.

Sentiment

The sentiment around HB4565 has shown considerable support from municipal leaders and local stakeholders. The mayor of Harlingen and representatives from the Texas Hotel and Lodging Association have voiced strong endorsements for the bill, emphasizing its potential to alleviate debt and encourage community improvements. Contrarily, there may be concerns from critics representing alternative viewpoints, who could question the appropriateness of increasing taxation without sufficient public benefit or scrutiny.

Contention

While the initial reception of HB4565 has been largely favorable, there remains a potential for contention, particularly regarding concerns over local governance and financial management. Critics may argue that increased taxation could burden residents and that any funds derived from the hotel occupancy tax should be allocated transparently. The legislative discussions also suggest a recognition that while enhancing municipal authority is beneficial, it is essential to ensure accountability and community-focused outcomes.

Texas Constitutional Statutes Affected

Local Government Code

  • Chapter 334. Sports And Community Venues
    • Section: 0082

Tax Code

  • Chapter 351. Municipal Hotel Occupancy Taxes
    • Section: 001
    • Section: 003
    • Section: 101
    • Section: 001
    • Section: 003
    • Section: 101

Companion Bills

TX SB2007

Identical Relating to the use of the revenue derived from the municipal hotel occupancy tax by certain municipalities and to the rate at which that tax is imposed by those municipalities.

Previously Filed As

TX HB4755

Relating to the authority of certain municipalities to use hotel occupancy tax revenue for certain venue projects.

TX HB4563

Relating to the authority of certain municipalities to authorize and finance certain venue projects and to use municipal hotel occupancy tax revenue for certain of those projects; authorizing the imposition of a tax.

TX SB2184

Relating to the authority of certain municipalities to authorize and finance certain venue projects and to use municipal hotel occupancy tax revenue for certain of those projects; authorizing the imposition of a tax.

TX SB2007

Relating to the use of the revenue derived from the municipal hotel occupancy tax by certain municipalities and to the rate at which that tax is imposed by those municipalities.

TX HB4682

Relating to the use of municipal hotel occupancy tax revenue and certain tax revenue derived from a hotel and convention center project by certain municipalities.

TX HB2445

Relating to the imposition of hotel occupancy taxes by and the collection and use of certain tax revenue in certain municipalities and counties, including the authority of certain municipalities to pledge certain tax revenue for the payment of obligations related to hotel and hotel and convention center projects; authorizing the imposition of a tax.

TX SB2298

Relating to the use of municipal hotel occupancy tax revenue and certain tax revenue derived from a hotel and convention center project by certain municipalities.

TX HB2974

Relating to municipal and county hotel occupancy taxes and the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project; authorizing the imposition of taxes.

TX SB1307

Relating to the use of hotel occupancy tax revenue by certain municipalities and the authority of certain municipalities to pledge that revenue, and to receive and pledge certain other revenue, for the payment of obligations related to hotel projects.

TX HB2788

Relating to the use of hotel occupancy tax revenue by certain municipalities, including the authority to pledge certain revenue for the payment of obligations related to hotel projects.

Similar Bills

No similar bills found.