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Bill

SB 2779

Relating to the allocation and use of certain hotel occupancy tax revenues.

89th Legislature (2025) Introduced by Brian Birdwell

SB 2779 restructures how Texas allocates hotel occupancy tax revenues among state and local entities, affecting funding for tourism and economic development programs.

Left pending in committee
#comptrollerofpublicaccounts(v2608) #taxation--hotel #moteloccupancy(i0806)
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Bill Summary · SB 2779

Legislative bill overview

SB 2779 modifies how Texas allocates and uses revenues generated from hotel occupancy taxes (the taxes guests pay when booking hotel rooms). The bill adjusts which entities receive portions of these tax revenues and potentially changes the permitted uses for the money collected. Specific allocation details would be found in the bill text itself.

Why is this important

Hotel occupancy taxes are a significant revenue source for many Texas cities and regions, typically funding tourism promotion, convention centers, and economic development. Changes to how these revenues are distributed directly affect local budgets, tourism infrastructure investments, and economic development priorities across the state. Cities and tourism organizations rely on these predictable revenue streams for multi-year planning.

Potential points of contention

  • Reallocation of funds: Some municipalities may lose revenue if allocations shift away from them, creating winners and losers in the redistribution
  • Tourism promotion versus other uses: Debate over whether revenues should remain dedicated to tourism/conventions or be redirected to other public purposes
  • Local control concerns: Cities may oppose state-level mandates that reduce their flexibility in using hotel tax revenues for local priorities

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

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