BILL ANALYSIS

Senate Research Center	S.B. 1086
89R10881 JBD-F	By: Perry
	Economic Development
	4/4/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 1086 would authorize Childress County to impose a hotel occupancy tax (HOT tax) on short-term accommodations, such as hotels and cabins, located outside the City of Childress. While municipalities in Texas can impose this tax through city ordinances, counties must receive specific legislative approval. This bill provides the commissioners court with the authority to set the tax rate at up to seven percent and determine if and when it should be implemented.

Currently, hotels within the City of Childress are already subject to a municipal HOT tax, so the proposed tax would only apply to accommodations outside of the city limits. This approach ensures clarity and prevents overlapping taxes. Revenue generated from the tax could be used to advertise and promote the area as a tourism destination, which would benefit the community and local economy as a whole.

If enacted, the bill would take immediate effect with sufficient legislative support or, alternatively, on September 1, 2025.

As proposed, S.B. 1086 amends current law relating to the authority of certain counties to impose a hotel occupancy tax.

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 (ii), as follows:

(ii) Authorizes the commissioners court of a county that borders Oklahoma and is bisected by United States Highway 62 to impose a tax as provided by Subsection (a) (relating to authorizing the commissioners courts of certain counties to impose a tax on certain persons). 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 Tax) applicable to the hotel.

SECTION 2. Effective date: upon passage or September 1, 2025.