Bill > HB3567

This bill allows certain counties meeting specific demographic criteria to impose a hotel occupancy tax, specifically targeting counties that have a population over 125,000, border the Red River, and have a county seat with a population exceeding 100,000. Under this legislation, such counties can implement a hotel tax at a rate not exceeding two percent of the price paid for a room in a hotel. Both the authorization to impose the tax and the tax rate limitation will expire on September 1, 2030, which means the provision has a sunset clause. The bill will take effect immediately if it receives a two-thirds majority vote in both legislative chambers, otherwise it will become effective on September 1, 2025. This type of legislation provides local counties with additional flexibility to generate revenue through targeted taxation, specifically in the hospitality and tourism sector.

Budget and Finance, Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3567