BILL ANALYSIS Senate Research Center S.B. 1592 By: Blanco et al. Economic Development 3/20/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The growth in online travel has created multiple channels for travelers to book lodging through virtual sources. While accommodations intermediaries such as Airbnb and Vrbo have agreements with the Texas Comptroller of Public Accounts of the State of Texas (comptroller) for state hotel occupancy tax (HOT) collection, the landscape for tax collection at the municipal and county level is varied and, in many instances, results in under-collection of the local HOT for municipalities across the state. Additionally, the process for local governments to set up systems to collect local HOT from individuals operating on accommodations intermediaries can be cumbersome and unreasonably costly. The current system of state and local HOT collection and reporting did not contemplate accommodations intermediaries that operate across multiple jurisdictions. S.B. 1592 provides a framework for centralized collection of local HOT for accommodations intermediaries to address these issues and assist municipalities with the administration of the tax. Under this framework, the comptroller will collect these funds from accommodations intermediaries, then remit the relevant local HOT to local entities, in the same manner as sales tax. As proposed, S.B. 1592 amends current law relating to the collection of state, municipal, and county hotel occupancy taxes by an accommodations intermediary. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Comptroller of Public Accounts of the State of Texas SECTION 1 (Section 156.054, Tax Code), SECTION 2 (Section 351.0043, Tax Code), and SECTION 3 (Section 352.0042, Tax Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 156, Tax Code, by adding Section 156.054, as follows: Sec. 156.054. TAX COLLECTION BY ACCOMMODATIONS INTERMEDIARY. (a) Defines "accommodations intermediary" and "booking charge." (b) Provides that, notwithstanding Section 156.053 (Collection of Tax) or any other law, beginning June 1, 2026: (1) an accommodations intermediary is: (A) required to collect the appropriate amount of the tax imposed under Chapter 156 (Hotel Occupancy Tax) on each booking charge with respect to a hotel located in this state; (B) required to report and remit all taxes collected by the accommodations intermediary under Section 156.054 (b)(1)(A) in the manner required of a person owning, operating, managing, or controlling a hotel under this chapter; (C) required to report and remit all taxes collected by the intermediary under Section 156.054 (b)(1)(A) to the Comptroller of Public Accounts of the State of Texas (comptroller) according to a schedule determined by the comptroller; and (D) considered to be the person owning, operating, managing, or controlling the hotel for purposes of the collection and enforcement of the tax imposed under this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary; and (2) the hotel is prohibited from collecting and is not liable for a tax imposed by this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary. (c) Requires the comptroller, on or before April 1, 2026, to promulgate a form or forms an accommodations intermediary is required to use to report the taxes collected by the accommodations intermediary under this section and Sections 351.0043 and 352.0042 and as necessary to administer Sections 151.429(h) (relating to requiring the owner of a qualified hotel project to receive 100 percent of the sales and use taxes paid or collected by the project or businesses located in the project), 351.102 (Pledge for Bonds), 351.156 (Entitlement to Certain Tax Revenue), and 351.157 (Additional Entitlement for Certain Municipalities). (d) Prohibits the forms described by Subsection (c) from requiring the identification of a specific guest or the owner or operator of a hotel except for as necessary to administer the relevant provisions of Sections 151.429(h), 351.102, 351.156, and 351.157. (e) Requires the comptroller, on or before April 1, 2026, to make available: (1) a map that shows the boundaries of each project financing zone authorized by Section 351.1015 (Certain Qualified Projects); (2) the name, address and relevant location number of each hotel project and qualified hotel project authorized by Sections 151.429(h), 351.102, 351.156, and 351.157, and any other information necessary for the identification of a hotel project or qualified hotel project; and (3) the rate of the tax imposed under this chapter, and the rate of tax imposed by each municipality or political subdivision that imposes a tax on the rental of a room or space in a hotel pursuant to Chapter 351 (Municipal Hotel Occupancy Taxes) or Chapter 352 (County Hotel Occupancy Taxes). (f) Requires that the taxes remitted to the comptroller under this section derived from project financing zones, hotel projects and qualified hotel projects to be deposited by the comptroller and distributed to the treasurer of the municipality or political subdivision in accordance with the requirements set forth in Sections 151.429(h), 351.1015, 351.102, 351.156, 351.157, and rules issued by the comptroller. (g) Provides that this section does not apply to an accommodations intermediary that has entered into a written agreement with the comptroller to collect and remit the tax imposed under this chapter for the rental of a room or space in a hotel in this state facilitated by the intermediary, so long as the agreement remains in effect. (h) Requires that information disclosed by an accommodations intermediary pursuant to this chapter be subject to the protections of Chapter 111 (Collection Procedures). (i) Authorizes the comptroller to adopt rules to implement and administer this section. SECTION 2. Amends Subchapter A, Chapter 351, Tax Code, by adding Section 351.0043, as follows: Sec. 351.0043. TAX COLLECTION BY ACCOMMODATIONS INTERMEDIARY. (a) Defines "accommodations intermediary" and "booking charge." (b) Provides that, notwithstanding Section 351.004 (Tax Collection) or any other law, beginning June 1, 2026: (1) an accommodations intermediary is: (A) required to collect the appropriate amount of the tax imposed under this chapter by a municipality in which a hotel is located on each booking charge with respect to that hotel; (B) required to report and remit all taxes collected by the accommodations intermediary under Section 351.0043 (b)(1)(A) in the manner required of a person owning, operating, managing, or controlling a hotel under this chapter; (C) required to report and remit all taxes collected by the intermediary under Section 351.0043 (b)(1)(A) to the comptroller according to a schedule determined by the comptroller; and (D) considered to be the person owning, operating, managing, or controlling the hotel for purposes of the collection and enforcement of the tax imposed under this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary; and (2) the hotel is prohibited from collecting and is not liable for a tax imposed by this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary. (c) Requires an accommodations intermediary to report and remit all taxes collected by the accommodations intermediary under Subsection (b) to the comptroller in accordance with Section 156.054. (d) Requires the comptroller to: (1) subject to Section 156.054(f), deposit the taxes remitted to the comptroller under this section in trust in the separate suspense account of the municipality in which hotels with respect to which the taxes were collected are located; and (2) distribute to the municipal treasurer or to the person who performs the office of the municipal treasurer payable to the municipality the municipality's share of the taxes remitted to the comptroller under this chapter at least 12 times during each state fiscal year. (e) Provides that a suspense account described by Subsection (d) (1) is outside the treasury and the comptroller is authorized to make a payment from the account without the necessity of an appropriation. (f) Requires the comptroller, before distributing any money to a municipality under Subsection (d) and subject to the limitation provided by this subsection, to deduct and deposit to the credit of the general revenue fund an amount equal to one percent of the amount of the taxes collected from booking charges for hotels located in the municipality under this section during the period for which a distribution is made as the state's charge for services provided by the state under this section. (g) Provides that an accommodations intermediary that collects the tax imposed by this chapter is subject to audit by the comptroller and solely subject to audit by the comptroller with regard to taxes required to be remitted to the comptroller under Subsection (c). Provides that the accommodations intermediary is entitled to seek review and to appeal a determination made by the comptroller in relation to the collection of a tax imposed by this chapter in the same manner provided for a tax imposed under Chapter 151 (Limited Sales, Excise, and Use Tax) and as provided in Chapter 111. (h) Provides that, notwithstanding any other law, this section applies to the collection, remittance, and distribution of taxes imposed by a political subdivision that is authorized to impose a hotel occupancy tax under a provision of the Special District Local Laws Code or civil statutes in the same manner the section applies to a municipality authorized to impose a hotel occupancy tax under this chapter. (i) Provides that this section does not apply to an accommodation intermediary that has entered into an agreement with a municipality or other political subdivision to collect and remit hotel occupancy taxes for the rental of a room or space in a hotel in the municipality or political subdivision that is facilitated by the intermediary and provided written notice of the agreement to the comptroller, so long as the agreement remains in effect. (j) Requires each municipality imposing a tax under this chapter to provide notice to the comptroller of the applicable rate of such tax imposed by the municipality on or before December 1, 2025, and on an annual basis thereafter. (k) Requires each municipality that enacts a tax under this chapter after the effective date of this Act to provide to the comptroller notice of the rate of such tax at least 60 days before the effective date of the tax. (l) Requires an accommodations intermediary that collects the tax imposed by this chapter at the rate published by the comptroller pursuant to Section 156.054(e) to be relieved of any and all liability for having collected and remitted an incorrect rate. (m) Requires that information disclosed by an accommodations intermediary pursuant to this chapter be subject to the protections of Chapter 111. (n) Authorizes the comptroller to adopt rules to implement and administer this section. SECTION 3. Amends Subchapter A, Chapter 352, Tax Code by adding Section 352.0042, as follows: Sec. 352.0042. TAX COLLECTION BY ACCOMMODATIONS INTERMEDIARY. (a) Defines "accommodations intermediary" and "booking charge." (b) Provides that, notwithstanding Section 352.004 (Tax Collection; Penalty) or any other law, beginning June 1, 2026: (1) an accommodations intermediary is: (A) required to collect the appropriate amount of the tax imposed under this chapter by a county in which a hotel is located on each booking charge with respect to that hotel; (B) required to report and remit all taxes collected by the accommodations intermediary under Section 352.0042 (b)(1)(A) in the manner required of a person owning, operating, managing, or controlling a hotel under this chapter; and (C) required to report and remit all taxes collected by the intermediary under Section 352.0042 (b)(1)(A) to the comptroller according to a schedule determined by the comptroller; and (D) considered to be the person owning, operating, managing, or controlling the hotel for purposes of the collection and enforcement of the tax imposed under this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary; and (2) the hotel is prohibited from collecting and is not liable for a tax imposed by this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary. (c) Requires an accommodations intermediary to report and remit all taxes collected by the intermediary under Subsection (b) in accordance with Section 156.054. (d) Requires the comptroller to: (1) subject to Section 156.054(f), deposit the taxes remitted to the comptroller under this section in trust in the separate suspense account of the county in which hotels with respect to which the taxes were collected are located; and (2) distribute to the county treasurer payable to the county the county's share of the taxes remitted to the comptroller under this chapter at least 12 times during each state fiscal year. (e) Provides that a suspense account described by Subsection (d)(1) is outside the treasury and the comptroller is authorized to make a payment from the account without the necessity of an appropriation. (f) Requires the comptroller, before distributing any money to a county under Subsection (d) and subject to the limitation provided by this subsection, to deduct and deposit to the credit of the general revenue fund an amount equal to one percent of the amount of the taxes collected from booking charges for hotels located in the county under this section during the period for which a distribution is made as the state's charge for services provided by the state under this section. (g) Provides that an accommodations intermediary that collects the tax imposed by this chapter is subject to audit by the comptroller and solely subject to audit by the comptroller with regard to taxes required to be remitted to the comptroller under Subsection (c). Provides that the accommodations intermediary is entitled to seek review and to appeal a determination made by the comptroller in relation to the collection of a tax imposed by this chapter in the same manner provided for a tax imposed under Chapter 151 and as provided in Chapter 111. (h) Provides that, notwithstanding any other law, this section applies to the collection, remittance, and distribution of taxes imposed by a political subdivision that is authorized to impose a hotel occupancy tax under a provision of the Special District Local Laws Code or civil statutes in the same manner the section applies to a county authorized to impose a hotel occupancy tax under this chapter. (i) Provides that this section does not apply to an accommodations intermediary that has entered into an agreement with a county or other political subdivision to collect and remit hotel occupancy taxes for the rental of a room or space in a hotel in the county or political subdivision that is facilitated by the intermediary and provided written notice of the agreement to the comptroller, so long as the agreement remains in effect. (j) Requires each political subdivision imposing a tax under this chapter to provide notice to the comptroller of the applicable rate of such tax imposed by the municipality on or before December 1, 2025, and on an annual basis thereafter. (k) Requires each political subdivision that enacts a tax under this chapter after the effective date of this Act to provide to the comptroller notice of the rate of such tax at least 60 days before the effective date of the tax. (l) Requires an accommodations intermediary that collects the tax imposed by this chapter at the rate published by the comptroller pursuant to Section 156.054(e) to be relieved of any and all liability for having collected and remitted an incorrect rate. (m) Requires that information disclosed by an accommodations intermediary pursuant to this chapter be subject to the protections of Chapter 111. (n) Authorizes the comptroller to adopt rules to implement and administer this section. SECTION 4. Amends Sections 334.253(a) and (b), Local Government Code, as follows: (a) Provides that certain sections, including Section 351.0043, Tax Code, govern the imposition, computation, administration, collection, and remittance of a municipal tax authorized under Subchapter H (Hotel Occupancy Taxes) except as inconsistent with this subchapter. (b) Provides that certain sections, including Section 352.0042, Tax Code, govern the imposition, computation, administration, collection, and remittance of a county tax authorized under this subchapter except as inconsistent with this subchapter. SECTION 5. Amends Subchapter A, Chapter 372 of Subtitle A, Local Government Code, by adding Sections 372.0016 and 372.0185, as follows: Sec. 372.0016. DEFINITION. Defines "accommodations intermediary." Sec. 372.0185. (a) Collection by accommodations intermediary. Authorizes the governing body, notwithstanding any other of provision of law, beginning June 1, 2026, if the governing body of a municipality or county establishes a public improvement district under this subchapter and levies an assessment against hotels that is imposed on a percentage of the consideration paid for occupancy of any sleeping room furnished by a hotel and is to be collected in the same manner and in accordance with the same procedures as those established in the municipality's or county's hotel occupancy tax, to require an accommodations intermediary to collect the assessment if all of the following are satisfied: (1) a hotel in the public improvement district agrees with an accommodations intermediary to have the assessment collected by the accommodations intermediary; (2) the hotel informs the accommodations intermediary of the appropriate rate to be charged and any other information necessary for the accommodations intermediary to properly collect the assessment; and (3) the hotel agrees to remit the assessment to the appropriate governing body of the municipality or county. (b) Requires the accommodations intermediary, if an accommodations intermediary is required to collect an assessment under this subchapter, to remit the amount collected to the hotel and have no liability for payment of the assessment described in Section 372.0185 (a) and not be held liable for any under-collection or over-collection of the assessment. SECTION 6. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1592
By: Blanco et al.
Economic Development
3/20/2025
As Filed
Senate Research Center
S.B. 1592
By: Blanco et al.
Economic Development
3/20/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The growth in online travel has created multiple channels for travelers to book lodging through virtual sources. While accommodations intermediaries such as Airbnb and Vrbo have agreements with the Texas Comptroller of Public Accounts of the State of Texas (comptroller) for state hotel occupancy tax (HOT) collection, the landscape for tax collection at the municipal and county level is varied and, in many instances, results in under-collection of the local HOT for municipalities across the state. Additionally, the process for local governments to set up systems to collect local HOT from individuals operating on accommodations intermediaries can be cumbersome and unreasonably costly. The current system of state and local HOT collection and reporting did not contemplate accommodations intermediaries that operate across multiple jurisdictions.
S.B. 1592 provides a framework for centralized collection of local HOT for accommodations intermediaries to address these issues and assist municipalities with the administration of the tax. Under this framework, the comptroller will collect these funds from accommodations intermediaries, then remit the relevant local HOT to local entities, in the same manner as sales tax.
As proposed, S.B. 1592 amends current law relating to the collection of state, municipal, and county hotel occupancy taxes by an accommodations intermediary.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Comptroller of Public Accounts of the State of Texas SECTION 1 (Section 156.054, Tax Code), SECTION 2 (Section 351.0043, Tax Code), and SECTION 3 (Section 352.0042, Tax Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subchapter B, Chapter 156, Tax Code, by adding Section 156.054, as follows:
Sec. 156.054. TAX COLLECTION BY ACCOMMODATIONS INTERMEDIARY. (a) Defines "accommodations intermediary" and "booking charge."
(b) Provides that, notwithstanding Section 156.053 (Collection of Tax) or any other law, beginning June 1, 2026:
(1) an accommodations intermediary is:
(A) required to collect the appropriate amount of the tax imposed under Chapter 156 (Hotel Occupancy Tax) on each booking charge with respect to a hotel located in this state;
(B) required to report and remit all taxes collected by the accommodations intermediary under Section 156.054 (b)(1)(A) in the manner required of a person owning, operating, managing, or controlling a hotel under this chapter;
(C) required to report and remit all taxes collected by the intermediary under Section 156.054 (b)(1)(A) to the Comptroller of Public Accounts of the State of Texas (comptroller) according to a schedule determined by the comptroller; and
(D) considered to be the person owning, operating, managing, or controlling the hotel for purposes of the collection and enforcement of the tax imposed under this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary; and
(2) the hotel is prohibited from collecting and is not liable for a tax imposed by this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary.
(c) Requires the comptroller, on or before April 1, 2026, to promulgate a form or forms an accommodations intermediary is required to use to report the taxes collected by the accommodations intermediary under this section and Sections 351.0043 and 352.0042 and as necessary to administer Sections 151.429(h) (relating to requiring the owner of a qualified hotel project to receive 100 percent of the sales and use taxes paid or collected by the project or businesses located in the project), 351.102 (Pledge for Bonds), 351.156 (Entitlement to Certain Tax Revenue), and 351.157 (Additional Entitlement for Certain Municipalities).
(d) Prohibits the forms described by Subsection (c) from requiring the identification of a specific guest or the owner or operator of a hotel except for as necessary to administer the relevant provisions of Sections 151.429(h), 351.102, 351.156, and 351.157.
(e) Requires the comptroller, on or before April 1, 2026, to make available:
(1) a map that shows the boundaries of each project financing zone authorized by Section 351.1015 (Certain Qualified Projects);
(2) the name, address and relevant location number of each hotel project and qualified hotel project authorized by Sections 151.429(h), 351.102, 351.156, and 351.157, and any other information necessary for the identification of a hotel project or qualified hotel project; and
(3) the rate of the tax imposed under this chapter, and the rate of tax imposed by each municipality or political subdivision that imposes a tax on the rental of a room or space in a hotel pursuant to Chapter 351 (Municipal Hotel Occupancy Taxes) or Chapter 352 (County Hotel Occupancy Taxes).
(f) Requires that the taxes remitted to the comptroller under this section derived from project financing zones, hotel projects and qualified hotel projects to be deposited by the comptroller and distributed to the treasurer of the municipality or political subdivision in accordance with the requirements set forth in Sections 151.429(h), 351.1015, 351.102, 351.156, 351.157, and rules issued by the comptroller.
(g) Provides that this section does not apply to an accommodations intermediary that has entered into a written agreement with the comptroller to collect and remit the tax imposed under this chapter for the rental of a room or space in a hotel in this state facilitated by the intermediary, so long as the agreement remains in effect.
(h) Requires that information disclosed by an accommodations intermediary pursuant to this chapter be subject to the protections of Chapter 111 (Collection Procedures).
(i) Authorizes the comptroller to adopt rules to implement and administer this section.
SECTION 2. Amends Subchapter A, Chapter 351, Tax Code, by adding Section 351.0043, as follows:
Sec. 351.0043. TAX COLLECTION BY ACCOMMODATIONS INTERMEDIARY. (a) Defines "accommodations intermediary" and "booking charge."
(b) Provides that, notwithstanding Section 351.004 (Tax Collection) or any other law, beginning June 1, 2026:
(1) an accommodations intermediary is:
(A) required to collect the appropriate amount of the tax imposed under this chapter by a municipality in which a hotel is located on each booking charge with respect to that hotel;
(B) required to report and remit all taxes collected by the accommodations intermediary under Section 351.0043 (b)(1)(A) in the manner required of a person owning, operating, managing, or controlling a hotel under this chapter;
(C) required to report and remit all taxes collected by the intermediary under Section 351.0043 (b)(1)(A) to the comptroller according to a schedule determined by the comptroller; and
(D) considered to be the person owning, operating, managing, or controlling the hotel for purposes of the collection and enforcement of the tax imposed under this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary; and
(2) the hotel is prohibited from collecting and is not liable for a tax imposed by this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary.
(c) Requires an accommodations intermediary to report and remit all taxes collected by the accommodations intermediary under Subsection (b) to the comptroller in accordance with Section 156.054.
(d) Requires the comptroller to:
(1) subject to Section 156.054(f), deposit the taxes remitted to the comptroller under this section in trust in the separate suspense account of the municipality in which hotels with respect to which the taxes were collected are located; and
(2) distribute to the municipal treasurer or to the person who performs the office of the municipal treasurer payable to the municipality the municipality's share of the taxes remitted to the comptroller under this chapter at least 12 times during each state fiscal year.
(e) Provides that a suspense account described by Subsection (d) (1) is outside the treasury and the comptroller is authorized to make a payment from the account without the necessity of an appropriation.
(f) Requires the comptroller, before distributing any money to a municipality under Subsection (d) and subject to the limitation provided by this subsection, to deduct and deposit to the credit of the general revenue fund an amount equal to one percent of the amount of the taxes collected from booking charges for hotels located in the municipality under this section during the period for which a distribution is made as the state's charge for services provided by the state under this section.
(g) Provides that an accommodations intermediary that collects the tax imposed by this chapter is subject to audit by the comptroller and solely subject to audit by the comptroller with regard to taxes required to be remitted to the comptroller under Subsection (c). Provides that the accommodations intermediary is entitled to seek review and to appeal a determination made by the comptroller in relation to the collection of a tax imposed by this chapter in the same manner provided for a tax imposed under Chapter 151 (Limited Sales, Excise, and Use Tax) and as provided in Chapter 111.
(h) Provides that, notwithstanding any other law, this section applies to the collection, remittance, and distribution of taxes imposed by a political subdivision that is authorized to impose a hotel occupancy tax under a provision of the Special District Local Laws Code or civil statutes in the same manner the section applies to a municipality authorized to impose a hotel occupancy tax under this chapter.
(i) Provides that this section does not apply to an accommodation intermediary that has entered into an agreement with a municipality or other political subdivision to collect and remit hotel occupancy taxes for the rental of a room or space in a hotel in the municipality or political subdivision that is facilitated by the intermediary and provided written notice of the agreement to the comptroller, so long as the agreement remains in effect.
(j) Requires each municipality imposing a tax under this chapter to provide notice to the comptroller of the applicable rate of such tax imposed by the municipality on or before December 1, 2025, and on an annual basis thereafter.
(k) Requires each municipality that enacts a tax under this chapter after the effective date of this Act to provide to the comptroller notice of the rate of such tax at least 60 days before the effective date of the tax.
(l) Requires an accommodations intermediary that collects the tax imposed by this chapter at the rate published by the comptroller pursuant to Section 156.054(e) to be relieved of any and all liability for having collected and remitted an incorrect rate.
(m) Requires that information disclosed by an accommodations intermediary pursuant to this chapter be subject to the protections of Chapter 111.
(n) Authorizes the comptroller to adopt rules to implement and administer this section.
SECTION 3. Amends Subchapter A, Chapter 352, Tax Code by adding Section 352.0042, as follows:
Sec. 352.0042. TAX COLLECTION BY ACCOMMODATIONS INTERMEDIARY. (a) Defines "accommodations intermediary" and "booking charge."
(b) Provides that, notwithstanding Section 352.004 (Tax Collection; Penalty) or any other law, beginning June 1, 2026:
(1) an accommodations intermediary is:
(A) required to collect the appropriate amount of the tax imposed under this chapter by a county in which a hotel is located on each booking charge with respect to that hotel;
(B) required to report and remit all taxes collected by the accommodations intermediary under Section 352.0042 (b)(1)(A) in the manner required of a person owning, operating, managing, or controlling a hotel under this chapter; and
(C) required to report and remit all taxes collected by the intermediary under Section 352.0042 (b)(1)(A) to the comptroller according to a schedule determined by the comptroller; and
(D) considered to be the person owning, operating, managing, or controlling the hotel for purposes of the collection and enforcement of the tax imposed under this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary; and
(2) the hotel is prohibited from collecting and is not liable for a tax imposed by this chapter on a booking charge for a room or space in a hotel made through the accommodations intermediary.
(c) Requires an accommodations intermediary to report and remit all taxes collected by the intermediary under Subsection (b) in accordance with Section 156.054.
(d) Requires the comptroller to:
(1) subject to Section 156.054(f), deposit the taxes remitted to the comptroller under this section in trust in the separate suspense account of the county in which hotels with respect to which the taxes were collected are located; and
(2) distribute to the county treasurer payable to the county the county's share of the taxes remitted to the comptroller under this chapter at least 12 times during each state fiscal year.
(e) Provides that a suspense account described by Subsection (d)(1) is outside the treasury and the comptroller is authorized to make a payment from the account without the necessity of an appropriation.
(f) Requires the comptroller, before distributing any money to a county under Subsection (d) and subject to the limitation provided by this subsection, to deduct and deposit to the credit of the general revenue fund an amount equal to one percent of the amount of the taxes collected from booking charges for hotels located in the county under this section during the period for which a distribution is made as the state's charge for services provided by the state under this section.
(g) Provides that an accommodations intermediary that collects the tax imposed by this chapter is subject to audit by the comptroller and solely subject to audit by the comptroller with regard to taxes required to be remitted to the comptroller under Subsection (c). Provides that the accommodations intermediary is entitled to seek review and to appeal a determination made by the comptroller in relation to the collection of a tax imposed by this chapter in the same manner provided for a tax imposed under Chapter 151 and as provided in Chapter 111.
(h) Provides that, notwithstanding any other law, this section applies to the collection, remittance, and distribution of taxes imposed by a political subdivision that is authorized to impose a hotel occupancy tax under a provision of the Special District Local Laws Code or civil statutes in the same manner the section applies to a county authorized to impose a hotel occupancy tax under this chapter.
(i) Provides that this section does not apply to an accommodations intermediary that has entered into an agreement with a county or other political subdivision to collect and remit hotel occupancy taxes for the rental of a room or space in a hotel in the county or political subdivision that is facilitated by the intermediary and provided written notice of the agreement to the comptroller, so long as the agreement remains in effect.
(j) Requires each political subdivision imposing a tax under this chapter to provide notice to the comptroller of the applicable rate of such tax imposed by the municipality on or before December 1, 2025, and on an annual basis thereafter.
(k) Requires each political subdivision that enacts a tax under this chapter after the effective date of this Act to provide to the comptroller notice of the rate of such tax at least 60 days before the effective date of the tax.
(l) Requires an accommodations intermediary that collects the tax imposed by this chapter at the rate published by the comptroller pursuant to Section 156.054(e) to be relieved of any and all liability for having collected and remitted an incorrect rate.
(m) Requires that information disclosed by an accommodations intermediary pursuant to this chapter be subject to the protections of Chapter 111.
(n) Authorizes the comptroller to adopt rules to implement and administer this section.
SECTION 4. Amends Sections 334.253(a) and (b), Local Government Code, as follows:
(a) Provides that certain sections, including Section 351.0043, Tax Code, govern the imposition, computation, administration, collection, and remittance of a municipal tax authorized under Subchapter H (Hotel Occupancy Taxes) except as inconsistent with this subchapter.
(b) Provides that certain sections, including Section 352.0042, Tax Code, govern the imposition, computation, administration, collection, and remittance of a county tax authorized under this subchapter except as inconsistent with this subchapter.
SECTION 5. Amends Subchapter A, Chapter 372 of Subtitle A, Local Government Code, by adding Sections 372.0016 and 372.0185, as follows:
Sec. 372.0016. DEFINITION. Defines "accommodations intermediary."
Sec. 372.0185. (a) Collection by accommodations intermediary. Authorizes the governing body, notwithstanding any other of provision of law, beginning June 1, 2026, if the governing body of a municipality or county establishes a public improvement district under this subchapter and levies an assessment against hotels that is imposed on a percentage of the consideration paid for occupancy of any sleeping room furnished by a hotel and is to be collected in the same manner and in accordance with the same procedures as those established in the municipality's or county's hotel occupancy tax, to require an accommodations intermediary to collect the assessment if all of the following are satisfied:
(1) a hotel in the public improvement district agrees with an accommodations intermediary to have the assessment collected by the accommodations intermediary;
(2) the hotel informs the accommodations intermediary of the appropriate rate to be charged and any other information necessary for the accommodations intermediary to properly collect the assessment; and
(3) the hotel agrees to remit the assessment to the appropriate governing body of the municipality or county.
(b) Requires the accommodations intermediary, if an accommodations intermediary is required to collect an assessment under this subchapter, to remit the amount collected to the hotel and have no liability for payment of the assessment described in Section 372.0185 (a) and not be held liable for any under-collection or over-collection of the assessment.
SECTION 6. Effective date: September 1, 2025.