Relating to the use of municipal hotel occupancy tax revenue and certain tax revenue derived from a hotel and convention center project by certain municipalities.
Summary
SB 2298 would expand and clarify which Texas municipalities may use municipal hotel occupancy tax revenue for tourism-related facilities and projects. The bill amends the Tax Code to authorize certain specifically described municipalities to spend hotel occupancy tax revenue on the construction, improvement, expansion, equipping, renovation, repair, operation, and maintenance of coliseums, multiuse facilities, and related infrastructure, as well as venues tied to tourism such as hotels, resorts, and convention center facilities on municipally owned land or land held by a nonprofit acting for the municipality.
The bill is highly specific in its applicability, listing a large number of municipalities by population, geography, county characteristics, landmarks, and local features. It also amends a related provision so that one category of municipality may use certain hotel/convention center project revenue under Section 351.161 only if it falls within the newly referenced municipal categories. The bill would take effect immediately if approved by a two-thirds vote in each chamber; otherwise, it would take effect September 1, 2025.
Impact
SB 2298 would change state law in Chapter 351 of the Tax Code by broadening and tailoring the authorized uses of municipal hotel occupancy tax revenue for a long list of named or specially described municipalities. It would also limit one subsection by expressly stating that a municipality in one category may not use hotel occupancy tax revenue for roads, streets, or water and sewer facilities, while allowing tourism-oriented facility spending. The bill’s practical effect is to give selected municipalities more flexibility to finance tourism and convention-related development, while leaving other municipalities subject to existing hotel tax restrictions.
Sentiment
The available legislative record suggests generally favorable committee sentiment. The bill was reported adversely with a favorable committee substitute by a 4-0 vote, indicating unanimous support among those voting in committee for the substitute version even though the original bill was not advanced in its original form. There are no recorded floor votes or committee transcript excerpts in the provided material, so broader chamber sentiment cannot be assessed from the available record.
Contention
The main point of contention appears to be the scope and specificity of the municipal authorizations. Because the bill uses numerous population thresholds, county boundaries, and local landmarks to identify eligible municipalities, it creates a highly tailored set of beneficiaries rather than a general statewide rule. That kind of specificity can raise concerns about special legislation, unequal treatment among municipalities, and whether hotel occupancy tax revenue should be directed to tourism facilities versus broader infrastructure needs. The committee substitute likely reflects an effort to refine those eligibility categories and permitted uses.
Identical
Relating to the use of municipal hotel occupancy tax revenue and certain tax revenue derived from a hotel and convention center project by certain municipalities.
Relating to the use of municipal hotel occupancy tax revenue and certain tax revenue derived from a hotel and convention center project by certain municipalities.
Relating to municipal and county hotel occupancy taxes and the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project; authorizing the imposition of taxes.