Texas House Bill HB1764

Texas 2021 - 87th Regular

Caption

Relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax.

Impact

The bill's passage would enable counties with specific cultural events, like strawberry festivals, to raise additional revenue through tourism-related taxes. This revenue would have designated uses, primarily focused on building and maintaining community civic centers equipped for events such as rodeos and agricultural shows. Consequently, this could stimulate local economies by boosting tourism and related hotel occupancy, further increasing economic activity in the region.

Summary

House Bill 1764 is aimed at expanding tax authority for certain counties in Texas, specifically allowing counties with populations under 60,000 to impose a hotel occupancy tax if they host an annual strawberry festival in a location outside the county seat. This legislative measure seeks to enhance local funding capabilities for community development projects tied to tourism and hospitality. The tax rate can be set at a maximum of 2% charged on hotel room rentals in the designated counties.

Contention

While supporters of HB 1764 argue that it provides necessary financial resources for smaller counties to promote tourism and improve community infrastructure, detractors may express concerns regarding the implications of introducing a new tax. Specific contention points might include potential impacts on local hospitality businesses, and whether or not the additional tax burden could deter visitors. Furthermore, the narrow focus on counties with strawberry festivals may prompt discussions about equitable access to tourism revenues for other counties with different cultural events.