BILL ANALYSIS Senate Research Center C.S.S.B. 1592 89R13558 CJC-F By: Blanco et al. Economic Development 4/2/2025 Committee Report (Substituted) 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. (Original Author's/Sponsor's Statement of Intent) C.S.S.B. 1592 amends current law relating to the collection of state and local hotel occupancy taxes and assessments related to hotels 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 the term "accommodations intermediary" does not include a person that facilitates the rental of a room or space in a hotel solely on behalf of an affiliated person, including a franchisee, operating under a shared hotel brand. (c) Provides that, for purposes of this section, a person facilitates the rental of a room or space in a hotel in this state by providing a physical or electronic medium through which a person other than the owner or operator of the medium rents a room or space in the hotel. (d) Provides that, notwithstanding Section 156.053 (Collection of Tax) or any other law and except as provided by this section: (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 Paragraph (A) to the Comptroller of Public Accounts of the State of Texas (comptroller) in the manner required of a person owning, operating, managing, or controlling a hotel under this chapter in accordance with a schedule prescribed by the comptroller; and (C) 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. (e) Requires the comptroller to adopt a form an accommodations intermediary is required to use to report the taxes collected by the accommodations intermediary under this section, and if applicable, Sections 351.0043 and 352.0042. Requires that the form include information necessary for the comptroller to comply with the requirements of certain provisions. (f) Prohibits the form described by Subsection (e) from requiring the identification of a specific guest or the owner or operator of a hotel, except as necessary for the comptroller to comply with the requirements of certain provisions. (g) Requires the comptroller to make available to an accommodations intermediary: (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 boundaries of each hotel project, qualified hotel project, and qualified hotel for which a municipality or owner is entitled to a rebate, refund, or payment of hotel occupancy taxed under certain sections as well as any other information necessary to identify the location of the hotel project, qualified hotel project, or qualified hotel; and (3) a list that is maintained and continuously updated and provides the rate of the hotel occupancy tax imposed by the state under this chapter and the rate of the hotel occupancy tax imposed by each municipality and other political subdivision that imposes a hotel occupancy tax. (h) Requires the comptroller to deposit and pay to the appropriate municipality the hotel occupancy taxes remitted by an accommodations intermediary that are attributable to booking charges at a hotel located in a project financing zone or at a hotel that is a hotel project, qualified hotel project or qualified hotel in accordance with certain provisions and rules adopted by the comptroller under those provisions. (i) 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. (j) Provides that Sections 111.0034 (Advanced Database System For Audits), 111.0035 (Advanced Database System For Tax Collections), 111.036 (Out-Of-State Audits), 111.006 (Confidentiality of Information), and 111.025 (Delinquent Taxpayer Financial Records) apply to information provided or disclosed by an accommodations intermediary under this chapter. (k) 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 and except as provided by this section: (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 Paragraph (A) to the comptroller in accordance with a schedule prescribed by the comptroller; and (C) 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 use the form adopted by the comptroller under Section 156.054(e) to report the taxes collected by the intermediary under this chapter. (d) Requires the comptroller, subject to Section 156.054(h), to: (1) 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) send 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 sending any money to a municipality under Subsection (d), 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 only in regard to the accommodations intermediary's collection, reporting, and remittance of the tax imposed by this chapter. 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 as provided by Chapter 111 (Collection Procedures) and in the same manner provided for a tax imposed under Chapter 151 (Limited Sales, Excise, and Use Tax). (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 during the period the agreement is in effect. (j) Prohibits a municipality that adopts an ordinance imposing a tax under this chapter in a year after the date on which the report required under Section 351.009 is due from imposing the tax before the 60th day after the date the municipality provided notice of the rate of the tax to the comptroller. (k) Requires a political subdivision to which this section applies under Subsection (h) that is not required to file with the comptroller a report under Section 351.009 or a report that contains substantially the same information to annually report to the comptroller the rate of the hotel occupancy tax imposed by the political subdivision in the manner and on a date prescribed by the comptroller. Prohibits a political subdivision that adopts an ordinance, order, or resolution imposing a hotel occupancy tax in a year after the date on which the political subdivision is required to report the rate of its hotel occupancy tax to the comptroller from imposing the tax before the 60th day after the date the political subdivision provides notice of the rate of the tax to the comptroller. (1) Prohibits an accommodations intermediary that collects the tax imposed by this chapter at the rate provided by the comptroller on the most recent list made available under Section 156.054(g), notwithstanding any other law, from being held liable for using an incorrect tax rate when collecting and remitting the tax. (m) Provides that Sections 111.0034, 111.0035, 111.0036, 111.006, and 111.025 apply to information provided or disclosed by an accommodations intermediary under this chapter. (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 351.004 or any other law and except as provided by this section: (1) an accommodations intermediary is: (A) required to collect the appropriate amount of 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 Paragraph (A) to the comptroller in accordance with a schedule prescribed by the comptroller; and (C) 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 use the form adopted by the comptroller under Section 156.054(e) to report the taxes collected by the intermediary under this chapter. (d) Requires the comptroller, subject to Section 156.054(h), to: (1) 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) send 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 sending any money to a county under Subsection (d), 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 only in regard to the accommodation intermediary's collection, reporting, and remittance of the tax imposed by this chapter. 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 as provided by Chapter 111 and in the same manner provided for a tax imposed under Chapter 151. (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 during the period the agreement is in effect. (j) Prohibits a county that adopts an order or resolution imposing a tax under this chapter in a year after the date in which the report required under Section 352.009 (Annual Report to Comptroller) is due from imposing the tax before the 60th day after the date the county provided notice of the rate of the tax to the comptroller. (k) Requires a political subdivision to which this section applies under Subsection (h) that is not required to file with the comptroller a report under Section 352.009 or a report that contains substantially the same information to annually report to the comptroller the rate of the hotel occupancy tax imposed by the political subdivision in the manner and on a date prescribed by the comptroller. Prohibits a political subdivision that adopts an ordinance, order or resolution imposing a hotel occupancy tax in a year after the date on which the political subdivision is required to report the rate of its hotel occupancy tax to the comptroller from imposing the tax before the 60th day after the date the political subdivision provides notice of the rate of the tax to the comptroller. (l) Prohibits an accommodations intermediary that collects the tax imposed by this chapter at the rate provided by the comptroller on the most recent list made available under Section 156.054(g), notwithstanding any other law, from being held liable for using an incorrect tax rate when collecting and remitting the tax. (m) Provides that Sections 111.0034, 111.0035, 111.0036, 111.006, and 111.025 apply to information provided or disclosed by an accommodations intermediary under this chapter. (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, Local Government Code, by adding Section 372.0185, as follows: Sec. 372.0185. COLLECTION OF ASSESSMENT BY ACCOMMODATIONS INTERMEDIARY. (a) Defines "accommodations intermediary." (b) Provides that this section applies only to a public improvement district established by the governing body of a municipality or county under this subchapter that levies against a hotel an assessment that is imposed on a percentage of the consideration paid for occupancy of a sleeping room in the hotel and is collected in the same manner and in accordance with the same procedures as a hotel occupancy tax imposed by the municipality or county that established the district. (c) Authorizes the governing body of a municipality or county that establishes a public improvement district described by Subsection (b) to require an accommodations intermediary to collect an assessment levied against a hotel in the district if: (1) a hotel in the district enters into an agreement with an accommodations intermediary to have the assessment collected by the accommodations intermediary; (2) the hotel provides to the accommodations intermediary the rate of the assessment to be collected as well as any other information necessary for the accommodations intermediary to collect the assessment; and (3) the hotel agrees to remit the assessment to the governing body of the municipality or county, as applicable, that established the district. (d) Prohibits an accommodations intermediary, if the governing body of a municipality or county requires the accommodations intermediary to collect and assessment under this section, notwithstanding any other law, from being held liable for collecting the assessment in an incorrect amount. SECTION 6. (a) Requires each municipality, county, or other political subdivision that imposes a hotel occupancy tax, not later than December 1, 2025, to provide notice of the rate of that tax to the comptroller in the manner prescribed by the comptroller. (b) Provides that this section takes effect September 1, 2025. SECTION 7. Effective date: except as otherwise provided by this Act, June 1, 2026.
BILL ANALYSIS
Senate Research Center C.S.S.B. 1592
89R13558 CJC-F By: Blanco et al.
Economic Development
4/2/2025
Committee Report (Substituted)
Senate Research Center
C.S.S.B. 1592
89R13558 CJC-F
By: Blanco et al.
Economic Development
4/2/2025
Committee Report (Substituted)
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.
(Original Author's/Sponsor's Statement of Intent)
C.S.S.B. 1592 amends current law relating to the collection of state and local hotel occupancy taxes and assessments related to hotels 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 the term "accommodations intermediary" does not include a person that facilitates the rental of a room or space in a hotel solely on behalf of an affiliated person, including a franchisee, operating under a shared hotel brand.
(c) Provides that, for purposes of this section, a person facilitates the rental of a room or space in a hotel in this state by providing a physical or electronic medium through which a person other than the owner or operator of the medium rents a room or space in the hotel.
(d) Provides that, notwithstanding Section 156.053 (Collection of Tax) or any other law and except as provided by this section:
(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 Paragraph (A) to the Comptroller of Public Accounts of the State of Texas (comptroller) in the manner required of a person owning, operating, managing, or controlling a hotel under this chapter in accordance with a schedule prescribed by the comptroller; and
(C) 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.
(e) Requires the comptroller to adopt a form an accommodations intermediary is required to use to report the taxes collected by the accommodations intermediary under this section, and if applicable, Sections 351.0043 and 352.0042. Requires that the form include information necessary for the comptroller to comply with the requirements of certain provisions.
(f) Prohibits the form described by Subsection (e) from requiring the identification of a specific guest or the owner or operator of a hotel, except as necessary for the comptroller to comply with the requirements of certain provisions.
(g) Requires the comptroller to make available to an accommodations intermediary:
(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 boundaries of each hotel project, qualified hotel project, and qualified hotel for which a municipality or owner is entitled to a rebate, refund, or payment of hotel occupancy taxed under certain sections as well as any other information necessary to identify the location of the hotel project, qualified hotel project, or qualified hotel; and
(3) a list that is maintained and continuously updated and provides the rate of the hotel occupancy tax imposed by the state under this chapter and the rate of the hotel occupancy tax imposed by each municipality and other political subdivision that imposes a hotel occupancy tax.
(h) Requires the comptroller to deposit and pay to the appropriate municipality the hotel occupancy taxes remitted by an accommodations intermediary that are attributable to booking charges at a hotel located in a project financing zone or at a hotel that is a hotel project, qualified hotel project or qualified hotel in accordance with certain provisions and rules adopted by the comptroller under those provisions.
(i) 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.
(j) Provides that Sections 111.0034 (Advanced Database System For Audits), 111.0035 (Advanced Database System For Tax Collections), 111.036 (Out-Of-State Audits), 111.006 (Confidentiality of Information), and 111.025 (Delinquent Taxpayer Financial Records) apply to information provided or disclosed by an accommodations intermediary under this chapter.
(k) 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 and except as provided by this section:
(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 Paragraph (A) to the comptroller in accordance with a schedule prescribed by the comptroller; and
(C) 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 use the form adopted by the comptroller under Section 156.054(e) to report the taxes collected by the intermediary under this chapter.
(d) Requires the comptroller, subject to Section 156.054(h), to:
(1) 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) send 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 sending any money to a municipality under Subsection (d), 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 only in regard to the accommodations intermediary's collection, reporting, and remittance of the tax imposed by this chapter. 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 as provided by Chapter 111 (Collection Procedures) and in the same manner provided for a tax imposed under Chapter 151 (Limited Sales, Excise, and Use Tax).
(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 during the period the agreement is in effect.
(j) Prohibits a municipality that adopts an ordinance imposing a tax under this chapter in a year after the date on which the report required under Section 351.009 is due from imposing the tax before the 60th day after the date the municipality provided notice of the rate of the tax to the comptroller.
(k) Requires a political subdivision to which this section applies under Subsection (h) that is not required to file with the comptroller a report under Section 351.009 or a report that contains substantially the same information to annually report to the comptroller the rate of the hotel occupancy tax imposed by the political subdivision in the manner and on a date prescribed by the comptroller. Prohibits a political subdivision that adopts an ordinance, order, or resolution imposing a hotel occupancy tax in a year after the date on which the political subdivision is required to report the rate of its hotel occupancy tax to the comptroller from imposing the tax before the 60th day after the date the political subdivision provides notice of the rate of the tax to the comptroller.
(1) Prohibits an accommodations intermediary that collects the tax imposed by this chapter at the rate provided by the comptroller on the most recent list made available under Section 156.054(g), notwithstanding any other law, from being held liable for using an incorrect tax rate when collecting and remitting the tax.
(m) Provides that Sections 111.0034, 111.0035, 111.0036, 111.006, and 111.025 apply to information provided or disclosed by an accommodations intermediary under this chapter.
(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 351.004 or any other law and except as provided by this section:
(1) an accommodations intermediary is:
(A) required to collect the appropriate amount of 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 Paragraph (A) to the comptroller in accordance with a schedule prescribed by the comptroller; and
(C) 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 use the form adopted by the comptroller under Section 156.054(e) to report the taxes collected by the intermediary under this chapter.
(d) Requires the comptroller, subject to Section 156.054(h), to:
(1) 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) send 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 sending any money to a county under Subsection (d), 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 only in regard to the accommodation intermediary's collection, reporting, and remittance of the tax imposed by this chapter. 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 as provided by Chapter 111 and in the same manner provided for a tax imposed under Chapter 151.
(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 during the period the agreement is in effect.
(j) Prohibits a county that adopts an order or resolution imposing a tax under this chapter in a year after the date in which the report required under Section 352.009 (Annual Report to Comptroller) is due from imposing the tax before the 60th day after the date the county provided notice of the rate of the tax to the comptroller.
(k) Requires a political subdivision to which this section applies under Subsection (h) that is not required to file with the comptroller a report under Section 352.009 or a report that contains substantially the same information to annually report to the comptroller the rate of the hotel occupancy tax imposed by the political subdivision in the manner and on a date prescribed by the comptroller. Prohibits a political subdivision that adopts an ordinance, order or resolution imposing a hotel occupancy tax in a year after the date on which the political subdivision is required to report the rate of its hotel occupancy tax to the comptroller from imposing the tax before the 60th day after the date the political subdivision provides notice of the rate of the tax to the comptroller.
(l) Prohibits an accommodations intermediary that collects the tax imposed by this chapter at the rate provided by the comptroller on the most recent list made available under Section 156.054(g), notwithstanding any other law, from being held liable for using an incorrect tax rate when collecting and remitting the tax.
(m) Provides that Sections 111.0034, 111.0035, 111.0036, 111.006, and 111.025 apply to information provided or disclosed by an accommodations intermediary under this chapter.
(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, Local Government Code, by adding Section 372.0185, as follows:
Sec. 372.0185. COLLECTION OF ASSESSMENT BY ACCOMMODATIONS INTERMEDIARY. (a) Defines "accommodations intermediary."
(b) Provides that this section applies only to a public improvement district established by the governing body of a municipality or county under this subchapter that levies against a hotel an assessment that is imposed on a percentage of the consideration paid for occupancy of a sleeping room in the hotel and is collected in the same manner and in accordance with the same procedures as a hotel occupancy tax imposed by the municipality or county that established the district.
(c) Authorizes the governing body of a municipality or county that establishes a public improvement district described by Subsection (b) to require an accommodations intermediary to collect an assessment levied against a hotel in the district if:
(1) a hotel in the district enters into an agreement with an accommodations intermediary to have the assessment collected by the accommodations intermediary;
(2) the hotel provides to the accommodations intermediary the rate of the assessment to be collected as well as any other information necessary for the accommodations intermediary to collect the assessment; and
(3) the hotel agrees to remit the assessment to the governing body of the municipality or county, as applicable, that established the district.
(d) Prohibits an accommodations intermediary, if the governing body of a municipality or county requires the accommodations intermediary to collect and assessment under this section, notwithstanding any other law, from being held liable for collecting the assessment in an incorrect amount.
SECTION 6. (a) Requires each municipality, county, or other political subdivision that imposes a hotel occupancy tax, not later than December 1, 2025, to provide notice of the rate of that tax to the comptroller in the manner prescribed by the comptroller.
(b) Provides that this section takes effect September 1, 2025.
SECTION 7. Effective date: except as otherwise provided by this Act, June 1, 2026.