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HB 4926

Relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax.

89th Legislature (2025) Introduced by Trey Wharton

HB 4926 authorizes select Texas counties to levy hotel occupancy taxes and specifies allowable uses of revenue generated from the taxation of overnight lodging stays.

Referred to Economic Development
#grimescounty(g0060) #navasotariver(gs5t2) #taxation--hotel #moteloccupancy(i0806)
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WeVote Research Nonpartisan
Bill Summary · HB 4926

Legislative bill overview

HB 4926 authorizes certain Texas counties to impose a hotel occupancy tax (HOT) and establishes how revenues from that tax can be used. The bill specifies which counties gain this taxing authority and likely defines permissible uses of collected revenue, such as tourism promotion or infrastructure development.

Why is this important

Hotel occupancy taxes are a common revenue source for local governments, particularly in counties with significant tourism. This bill expands fiscal authority for specific counties, potentially generating funding for tourism marketing, convention centers, or other local priorities without raising general property or sales taxes on residents.

Potential points of contention

  • Selective authorization: The bill grants this power only to "certain counties," raising questions about which counties qualify and whether the criteria are fair or create competitive disadvantages
  • Tax burden on visitors vs. locals: While HOT primarily affects tourists, business travelers and visiting relatives absorb the cost; debates may arise over whether the tax is appropriate or competitive with neighboring areas
  • Revenue use restrictions: The specific allowed uses of HOT revenue are critical—if narrowly defined, counties may find restrictions limiting; if broadly defined, concerns may arise about misallocation away from tourism infrastructure

Compiled from official sources — confirm details with the bill’s official record.

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