Texas House Bill HB3727

Texas 2023 - 88th Regular

• Filed: 3/6/23
• Out of House Committee: 4/26/23
• Voted on by House: 5/7/23
• Out of Senate Committee: 5/19/23
• Voted on by Senate: 5/23/23
• Governor Action: 6/12/23

Caption

Relating to municipal and county hotel occupancy taxes.

Impact

The modifications proposed in HB3727 significantly impact how municipalities manage and report their hotel occupancy tax revenues. For instance, the bill mandates that municipalities allocate a specific minimum percentage of tax revenue for tourism-related projects, which allows for better infrastructure and promotion of local tourism. This is intended to ensure that the tax revenue bolsters tourism while concurrently putting forth a clear expectation of transparency in financial reporting among local governments.

Summary

House Bill 3727 aims to amend existing provisions regarding municipal and county hotel occupancy taxes in Texas. This bill provides clarity and updates to the tax code surrounding hotel occupancy taxes, specifically relating to reporting requirements and the allocation of revenue generated from these taxes. Notably, it introduces stricter reporting mandates for municipalities, requiring them to annually report their tax rates and revenue collections to the comptroller, thereby enhancing financial transparency and accountability regarding how such tax revenues are utilized.

Sentiment

Generally, the sentiment surrounding HB3727 has been mixed, reflecting a balance between the need for increased regulation and the desire for local autonomy. On one hand, proponents, including members of the Texas Hotel Lodging Association, regard the bill as an important step toward ensuring fair use of hotel occupancy taxes that promote tourism and community development. Conversely, some local officials express apprehension regarding the increased regulatory burden, indicating that tight oversight might undermine local decision-making capabilities.

Contention

Despite its intended benefits, HB3727 has not been without contention. Some legislators and local stakeholders have voiced concerns about the bill's potential to restrict local governments' flexibility in utilizing hotel occupancy tax revenues. They argue that strict requirements could hinder their ability to address specific local needs. Additionally, the requirement for municipalities to remit excess tax revenues to the comptroller after certain thresholds may be viewed as an overreach, limiting the financial autonomy that local governments currently enjoy.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 351. Municipal Hotel Occupancy Taxes
  • Section: 001
  • Section: 009
  • Section: 1021
  • Section: 103
  • Section: 110
  • Section: 152
  • Section: 161
  • Section: 162
  • Section: 163
  • Section: 001
  • Section: 009
  • Section: 1021
  • Section: 103
  • Section: 110
  • Section: 161
  • Section: 162
  • Section: 163
  • Section: 001
  • Section: 009
  • Section: 1021
  • Section: 103
  • Section: 110
  • Section: 001
  • Section: 009
  • Section: 103
  • Section: 110
  • Section: 1021
  • Section: 001
  • Section: 009
  • Section: 1021
  • Section: 103
  • Section: 110
  • Section: 161
  • Section: 162
  • Section: 163

• Chapter 352. County Hotel Occupancy Taxes
  • Section: 009
  • Section: 009
  • Section: 009
  • Section: 009
  • Section: 009