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Bill

HB 4222

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

89th Legislature (2025) Introduced by A.J. Louderback

Texas counties gain authority to impose hotel occupancy taxes with specified rates, generating revenue for local tourism and infrastructure development.

Referred to Economic Development
#airports(s0307) #guadaluperiver(g0423) #taxation--hotel #moteloccupancy(i0806)
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WeVote Research Nonpartisan
Bill Summary · HB 4222

Legislative bill overview

HB 4222 authorizes certain Texas counties to impose a hotel occupancy tax (HOT) and specifies the applicable tax rates and permitted uses of the resulting revenue. The bill provides local governments with flexibility in implementing this lodging tax while establishing parameters for how the funds can be allocated.

Why is this important

Hotel occupancy taxes are a common revenue source for municipalities and counties, typically funding tourism promotion, convention centers, and related infrastructure. This bill impacts both local government finances and the hospitality industry in affected counties by creating new taxation authority that could increase costs for travelers while generating local revenue streams.

Potential points of contention

  • Rate uncertainty: The bill's specific tax rates and which counties qualify are not detailed in the summary, leaving questions about the actual tax burden on hotels and guests
  • Revenue allocation restrictions: Without knowing how revenue "must" or "may" be used, stakeholders may disagree on whether funds should prioritize tourism development, infrastructure, or general county services
  • Competitive impact: Counties with HOT authority may see competitive disadvantages compared to neighboring areas without such taxes, affecting hotel occupancy and pricing

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

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