BILL ANALYSIS

H.B. 3178

By: Virdell

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that Kerr County, an area known for its natural beauty and recreational value, draws a significant number of tourists each year but that the county has not been able to levy a county hotel occupancy tax to generate local revenue from these visitors. The bill author has further informed the committee that the county lacks resources needed to support the maintenance of certain community facilities, such as the Hill Country Youth Event Center. H.B. 3178 seeks to impose a county hotel occupancy tax in Kerr County so that the county has the ability to not only support community facilities like the youth center but to also reinvest in other local projects and promote tourism in the area.

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. 3178 amends the Tax Code to authorize the commissioners court of a county in which the headwaters of the Guadalupe River are located to impose a county hotel occupancy tax. This tax does not apply to a hotel located in a municipality that imposes a municipality hotel occupancy tax applicable to that hotel.

EFFECTIVE DATE

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