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Bill

HB 5028

Relating to the use of municipal hotel occupancy tax revenue by certain municipalities.

89th Legislature (2025) Introduced by Richard Hayes

HB 5028 modifies how Texas municipalities can allocate hotel occupancy tax revenue, potentially expanding or redirecting uses of this dedicated tourism funding source.

Referred to Ways & Means
#taxation--hotel #moteloccupancy(i0806)
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Bill Summary · HB 5028

Legislative bill overview

HB 5028 modifies how certain Texas municipalities can spend revenue collected from hotel occupancy taxes (the tax guests pay when booking hotel rooms). The bill appears to expand or redirect the allowable uses of these tax revenues beyond their current statutory restrictions, though the specific changes require review of the full bill text and existing law.

Why is this important

Hotel occupancy tax revenue is a significant funding source for many Texas cities, typically dedicated to tourism promotion and convention facilities. Changes to how this money can be spent directly affect municipal budgets, tourism infrastructure investments, and what services cities can fund with this dedicated revenue stream.

Potential points of contention

  • Competing fund uses: Expanding allowable uses of hotel tax revenue may pit tourism promotion and hospitality industry interests against other municipal priorities (infrastructure, affordable housing, etc.)
  • Local control vs. state mandate: The bill may represent either increased local flexibility or state-imposed restrictions on municipal revenue use, depending on its specific provisions
  • Hotel industry impact: If the bill redirects significant revenue away from tourism marketing and hospitality infrastructure, the hotel industry and convention bureaus may oppose it as harmful to their competitiveness

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

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