Texas House Bill HB2228

Texas 2015 - 84th Regular

Caption

Relating to a refund of certain sales taxes collected by certain hotels and restaurants that complete renovation projects; authorizing a fee.

Impact

The bill sets specific eligibility criteria for participation in the program, stipulating minimum expenditure amounts for projects aimed at upgrading guest rooms or dining areas. For hotels, the expenditure must be at least $10,000 per guest room and a total of $2 million for the project, while restaurants require a minimum of $10,000 for kitchen areas and $100,000 for the entire project. This legislative approach aims to stimulate investment in the hospitality sector, thereby bolstering local economies and the state's overall economic health.

Summary

House Bill 2228 introduces a sales tax refund program aimed at incentivizing the renovation and improvement of hotels and restaurants across Texas. Under this bill, owners of hotels and restaurants can apply for refunds on sales taxes collected when they complete certain renovation projects. Eligible projects include extensive renovations that cost over specified thresholds, which ensures that the funds are directed to substantial improvements that can enhance the hospitality experience for customers and potentially increase business revenue.

Contention

Discussion around HB 2228 may center on the appropriateness of providing tax refunds to businesses that are already expected to maintain and enhance their facilities as part of normal operations. Critics could argue that such incentives represent a use of public funds for private gain, particularly if the renovations do not lead to significant job creation or economic benefits to the community. Proponents, however, would assert that these refunds are necessary to ensure competitiveness and attractiveness of Texas hotels and restaurants in a crowded market.

Additional_notes

Furthermore, the implementation of this bill places some administrative responsibilities on the comptroller's office, as they are tasked with reviewing applications and issuing refunds, which could contribute to debates about state resource allocation and efficiency.