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Bill

SB 2298

Relating to the use of municipal hotel occupancy tax revenue and certain tax revenue derived from a hotel and convention center project by certain municipalities.

89th Legislature (2025) Introduced by Angela Paxton

SB 2298 modifies Texas municipal authority to allocate hotel occupancy tax revenues from hotel-convention center projects, potentially expanding spending flexibility for certain cities.

Not again placed on intent calendar
#taxation--hotel #moteloccupancy(i0806)
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WeVote Research Nonpartisan
Bill Summary · SB 2298

Legislative bill overview

SB 2298 modifies how certain Texas municipalities can use hotel occupancy tax (HOT) revenue collected from hotel and convention center projects. The bill appears to adjust the allowable uses and restrictions for these dedicated tax revenues, potentially expanding or redirecting how municipalities allocate funds generated from hospitality-related taxes.

Why is this important

Hotel occupancy taxes are significant revenue sources for many Texas cities, often designated for tourism promotion, convention center operations, or economic development. Changes to how these revenues can be spent directly affect municipal budgets, convention center management, and local economic development priorities, with potential impacts on tourism infrastructure investments.

Potential points of contention

  • Revenue allocation flexibility: Debate over whether municipalities should have broader discretion in spending HOT revenue versus maintaining restrictions ensuring funds support tourism and hospitality industries
  • Convention center funding: Questions about whether changes adequately fund ongoing convention center operations and maintenance versus allowing diversion to other municipal priorities
  • Inter-municipal equity: Concerns about whether different municipalities will receive differential treatment or benefits under the revised revenue use rules

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

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