Texas House Bill HB4781

Texas 2009 - 81st Regular

• Out of House Committee: 5/6/09
• Voted on by House: 5/12/09
• Out of Senate Committee: 5/20/09
• Voted on by Senate: 5/22/09
• Governor Action: 6/19/09
• Enrolled: 5/26/09
• Passed: 6/19/09

Caption

Relating to the imposition and rate of the county hotel occupancy tax in certain counties and the use of municipal hotel occupancy tax revenue in certain municipalities; providing authority to issue bonds.

Impact

The bill could have significant implications for local government revenue, allowing counties that meet specific geographical criteria—such as those located near national parks—to set a capped tax rate on hotel stays. By potentially raising the tax revenue generated from tourism, counties might have greater financial resources to fund local initiatives and improvements. This could lead to enhanced public services and infrastructure supports, benefiting both residents and visitors. However, the bill may also raise questions about equitable tax burdens across different regions, especially in counties with diverse economic profiles.

Summary

House Bill 4781 aims to modify the authority of counties in Texas to impose and rate the hotel occupancy tax. Specifically, the bill concerns certain counties and mandates the conditions under which these taxes can be enacted. It clarifies how the county hotel occupancy tax interacts with municipal occupancy taxes, creating provisions that prevent overlapping tax applications in municipalities that already impose their own hotel taxes. This is particularly relevant for local governments seeking to manage their revenue streams effectively and avoid tax redundancies that could confuse both residents and tourists alike.

Contention

Debate surrounding HB 4781 is expected as stakeholders differ on how the bill could affect tourism and municipality revenues. Supporters argue that providing counties with greater flexibility in tax rates could boost local economies by attracting more tourists, while critics might express concern over increasing costs for travelers. Additionally, there is potential contention regarding accountability in how the additional tax revenue will be utilized and whether the increased burden on hotel patrons is justified in relation to the benefits promised by such revenue enhancements.