Texas House Bill HB4661

Texas 2009 - 81st Regular

• Out of House Committee: 4/27/09
• Voted on by House: 5/6/09
• Out of Senate Committee: 5/15/09
• Voted on by Senate: 5/21/09
• Governor Action: 6/19/09
• Enrolled: 5/23/09
• Passed: 6/19/09

Caption

Relating to the rate of the municipal hotel occupancy tax in certain municipalities and to the use of certain revenue from the tax.

Impact

This legislation aims to provide uniformity and predictability for hotel occupancy tax rates within specific municipalities. By ensuring that a city cannot increase its hotel occupancy tax above the stipulated rate without contractually committing to the construction of a convention center, it sets defined financial parameters that could potentially influence tourism strategies and local economic development. The restrictions placed by this bill may encourage some municipalities to prioritize convention center projects, thereby potentially generating jobs and increasing local revenue through tourism.

Summary

House Bill 4661 focuses on the regulation of municipal hotel occupancy taxes in certain municipalities, particularly those that are home rule and located in counties adjacent to the Brazos and Navasota Rivers. Specifically, it caps the hotel occupancy tax at seven and three-quarter percent for municipalities that were originally chartered in or after 1938 and host a major state university. The bill mandates that these municipalities must utilize the revenue generated from any hotel tax rate exceeding seven percent to fund the construction of a convention center.

Contention

Despite its intentions, HB 4661 may face contention as it explicitly limits the financial autonomy of municipalities, which could lead to criticism regarding local governance. Stakeholders may argue that such a cap on tax rates restricts the ability of cities to generate necessary funding for various local projects, especially those unrelated to convention centers. Municipalities may express concerns that the stipulations could undermine their financial strategies or flexibility to respond to specific local needs, potentially leading to a broader conversation about state versus local authority in fiscal matters.