BILL ANALYSIS

H.B. 5165

By: Landgraf

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that seven municipalities currently utilize all or any portion of hotel occupancy tax revenue for the construction, enlarging, equipping, improvement, maintenance, repairing, and operation of an recreational facility or an arena used for rodeos, livestock shows, and agricultural expositions to substantially enhance hotel activity and encourage tourism. The bill author has further informed the committee that the City of Monahans has experienced exceptionally high hotel occupancy rates due to oil and gas activity, and that city officials have expressed interest in utilizing hotel occupancy tax revenue for the construction of a recreational facility. H.B. 5165 seeks to allow the City of Monahans to utilize hotel occupancy tax revenue for the construction, enlarging, equipping, improvement, maintenance, repairing, and operation of a recreational facility or an arena used for rodeos, livestock shows, and agricultural expositions to substantially enhance hotel activity and encourage tourism.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 5165 amends the Tax Code to authorize a municipality that is the county seat of a county with a population of more than 10,000 that contains a state park featuring sandhills to use revenue derived from the municipal hotel occupancy tax for constructing, enlarging, equipping, improving, maintaining, repairing, and operating a recreational facility or an arena used for rodeos, livestock shows, and agricultural expositions to substantially enhance hotel activity and encourage tourism.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.