BILL ANALYSIS

Senate Research Center	H.B. 5178
88R21226 RDS-F	By: Ashby (Nichols)
	Natural Resources & Economic Development
	5/15/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Hotel occupancy taxes are an important source of revenue for local governments. By levying such taxes, local governments can fund important tourism-related initiatives that attract visitors and generate economic activity. H.B. 5178 seeks to support such initiatives by authorizing a certain county containing a portion of the Angelina National Forest to impose a hotel occupancy tax to generate revenue for funding initiatives such as tourism development, historic preservation programs, and promotion of the arts.

H.B. 5178 amends current law relating to authorizing certain counties to impose a hotel occupancy tax and the applicability of that tax in certain counties.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 352.002, Tax Code, by adding Subsection (ee), as follows:

(ee) Authorizes the commissioners court of a county that has a population of 80,000 or more and that contains a portion of the Angelina National Forest to impose a tax as provided by Subsection (a) (relating to authorizing the commissioners courts of certain counties by the adoption of an order or resolution to impose a tax on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room that is in a hotel, costs $2 or more each day, and is ordinarily used for sleeping). Provides that a tax imposed under this subsection does not apply to a hotel located in a municipality that imposes a tax under Chapter 351 (Municipal Hotel Occupancy Taxes) applicable to the hotel.

SECTION 2. Effective date: September 1, 2023. �