WeVote
Log In

Bill

Bill

HB 2370

Relating to the authority of certain municipalities to use hotel occupancy tax revenue for certain venue projects.

89th Legislature (2025) Introduced by Ryan Guillen and 4 co-sponsors

Texas bill authorizes select municipalities to redirect hotel occupancy tax revenue toward venue capital projects, bypassing traditional tourism-promotion spending restrictions.

Referred to Economic Development
#border(s0045) #citygovernment--finance(i0062) #taxation--hotel #moteloccupancy(i0806)
0
WeVote Research Nonpartisan
Bill Summary · HB 2370

Legislative bill overview

HB 2370 expands the authority of certain Texas municipalities to allocate hotel occupancy tax (HOT) revenue toward specific venue projects. The bill allows eligible cities to redirect a portion of their HOT collections—typically restricted to tourism promotion—toward capital improvements or construction of entertainment venues. This represents a shift in how these tax revenues can be deployed locally.

Why is this important

Hotel occupancy taxes generate substantial revenue in Texas tourism destinations, and cities currently face strict statutory limits on how these funds can be used. This bill could enable municipalities to fund major infrastructure projects (convention centers, arenas, sports facilities) without seeking voter approval or competing for general revenue funds. For eligible cities, this creates new financing flexibility for economic development initiatives.

Potential points of contention

  • Revenue redirection concerns: Tourism promotion advocates may argue that diverting HOT revenue weakens marketing budgets that attract visitors and generate additional tax collections
  • Equity among municipalities: The bill specifies "certain municipalities," raising questions about which cities qualify and whether this creates unfair advantages for larger or politically favored areas
  • Lack of voter oversight: Using tax revenue for major projects without voter authorization bypasses direct public input on significant financial commitments
  • Accountability and project selection: Unclear criteria for which venue projects qualify or how municipalities will ensure public benefit justifies the tax redirection

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

Sign in to ask a question.