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Bill

HB 3178

Relating to the authority of certain counties to impose a hotel occupancy tax.

89th Legislature (2025) Introduced by Wes Virdell

HB 3178 grants certain Texas counties new authority to impose hotel occupancy taxes, increasing local revenue but raising lodging costs for travelers and the hospitality industry.

Referred to Economic Development
#guadaluperiver(g0423) #kerrcounty(g0192) #taxation--hotel #moteloccupancy(i0806)
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Bill Summary · HB 3178

Legislative bill overview

HB 3178 expands the authority of certain Texas counties to impose a hotel occupancy tax, likely granting counties previously without this taxing power the ability to levy taxes on hotel stays. The bill has passed the House and was referred to the Economic Development Committee, suggesting it modifies existing tax code provisions affecting county revenue sources.

Why is this important

Hotel occupancy taxes are a significant revenue source for local governments, typically funding tourism promotion, infrastructure, and public services. Expanding this authority allows additional counties to capture revenue from transient lodging, which could increase funding for local projects or reduce reliance on property and sales taxes, but also increases costs for travelers and the hospitality industry in affected areas.

Potential points of contention

  • Economic burden on hospitality sector: Hotels and property owners may oppose tax increases that could reduce competitiveness and occupancy rates in their regions
  • Consumer cost impact: Travelers face higher lodging costs, potentially affecting tourism demand and convention business for affected counties
  • Revenue fairness and use: Questions about how new tax revenue should be allocated and whether it primarily benefits tourism-related infrastructure versus general county operations

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

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