BILL ANALYSIS

C.S.H.B. 4926

By: Wharton

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that many counties across the state levy and collect hotel occupancy taxes to promote tourism and economic development and that Grimes County is currently not authorized to do so. The bill author has further informed the committee that Grimes County is home to the Texas Renaissance Festival, which draws hundreds of thousands of visitors each year with themed weekends, live entertainment, artisan vendors, and immersive historical experiences. C.S.H.B. 4926 seeks to boost investment in the Grimes County civic center, fairgrounds, and arena venue to promote tourism and the local economy by authorizing the county to impose a hotel occupancy tax.

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

C.S.H.B. 4926 amends the Tax Code to authorize a commissioners court of a county with a population of less than 100,000 that borders the Navasota River and in which an annual renaissance festival is held to impose a hotel occupancy tax at a rate provided by the bill's provisions.

C.S.H.B. 4926 caps the tax rate in a county described by the bill's provisions at seven percent of the price paid for a hotel room, except that the cap is instead two percent of that price if the hotel is located in a municipality that imposes a municipal hotel occupancy tax applicable to the hotel or in the extraterritorial jurisdiction of such a municipality.

C.S.H.B. 4926 authorizes the revenue from a tax imposed under the bill's provisions, in addition to the purposes of the hotel occupancy tax, to be used for the following:

· the construction, enlarging, equipping, improvement, maintenance, repairing, and operation of a civic center with an arena used for rodeos, livestock shows, or agricultural expositions to enhance hotel activity and encourage tourism;

· advertising and conducting solicitations and promotional programs to attract tourists or convention delegates to the county, any of which may be conducted by the county or through a contract with a person or organization selected by the county; and

· encouraging, promoting, and improving historical preservation and restoration efforts.

EFFECTIVE DATE

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

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 4926 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute omits a provision present in the introduced establishing that the hotel occupancy tax imposed at a rate provided by the bill's provisions does not apply to a hotel operated by a nonprofit organization exempt from federal income tax under the federal Internal Revenue Code of 1986 by being listed as a 501(c)(3) tax-exempt organization.