Texas House Bill HB4348

Texas 2009 - 81st Regular

Caption

Relating to the allocation of a portion of the state hotel occupancy tax revenue collected in a catastrophe area to the catastrophe reserve trust fund.

Impact

If enacted, HB 4348 would modify the existing Texas Tax Code by establishing a new provision that safeguards funding for disaster recovery efforts. Specifically, it amends the allocation process for hotel occupancy taxes, ensuring that some of the collected revenue is redirected to bolster the state's catastrophe reserve trust fund. This change has implications for local economies, especially in tourism-dependent areas that may face challenges due to disasters, as it prioritizes a funding mechanism aimed at enhancing disaster resilience.

Summary

House Bill 4348 addresses the allocation of a portion of the state hotel occupancy tax revenue that is collected in specified catastrophe areas. As defined in the bill, a 'catastrophe area' refers to locations impacted by significant disasters, which commonly necessitate state intervention and emergency funding. The bill aims to enhance the state's ability to respond to catastrophic events by directing a designated percentage of tax revenue from hotels in these areas to be deposited into the catastrophe reserve trust fund. This fund serves as a financial buffer for future disaster responses and recovery efforts.

Contention

Key points of discussion surrounding HB 4348 might focus on the balance between local economic interests and the necessity of having a robust disaster response fund. While proponents of the bill argue that it is a critical step toward improving the state's readiness for future crises, opponents may raise concerns about the potential impacts on local tax revenue streams and the pressures this could place on hotel operators and the hospitality industry as a whole. Further debate may center on how effectively the reserve fund could be utilized in actual disaster response efforts.