Relating to the authority of certain counties to impose a county hotel occupancy tax and to the rate of the tax.
Impact
The bill amends the Texas Tax Code to establish a framework for the tax rate, prohibiting rates from exceeding seven percent of the hotel room price. However, if the hotel is located within a municipality that has its own hotel tax, the maximum rate is limited to 0.75 percent. This stipulation is an effort to ensure that the newly imposed county tax does not excessively burden guests who may also be subject to municipal taxes.
Summary
SB1413 pertains to the authority of certain counties in Texas to impose a county hotel occupancy tax. Specifically, the bill allows counties with a population of 80,000 or less, which contain two state parks and are located through which the Colorado River flows (but not bordered by it), the option to levy a tax on hotel stays. The purpose of this bill is to enable these specific counties to generate additional revenue that can contribute to local funding and tourism development.
Contention
While the bill itself aims to support rural and less populated counties by allowing them to tap into hotel occupancy taxes, it does not come without potential points of contention. Some localities might resist the implementation of this tax to avoid additional expenses for travelers, fearing it might deter tourism. Additionally, municipalities that already impose hotel taxes may argue that adding a county tax complicates the taxation environment, potentially creating confusion for visitors and affecting the overall competitiveness of their tourism sector.
Relating to the hotel occupancy tax imposed by certain rural counties and by municipalities located in those counties and to the use of revenue from that tax.