Bill > SB2532

This bill modifies the calculation of voter-approval tax rates for certain coastal municipalities that receive hotel occupancy tax revenue from a local park board of trustees. The legislation introduces new definitions, including "eligible coastal municipality" (a municipality with a park board of trustees) and "misspent hotel occupancy tax revenue" (funds from hotel taxes or park board trustees that were not used for authorized purposes). The bill changes the voter-approval tax rate formula for these specific municipalities by adding a new calculation that subtracts the "misspent hotel occupancy tax revenue rate" from the standard rate. This means that if a coastal municipality improperly spends hotel occupancy tax revenue, its allowable tax rate will be reduced accordingly. The changes apply to ad valorem (property) taxes for tax years beginning on or after the effective date, which is January 1, 2026. The bill aims to incentivize proper use of hotel occupancy tax funds by directly linking misuse of these funds to a lower tax rate, thereby potentially discouraging inappropriate spending by eligible coastal municipalities.

Budget and Finance, Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2532