H.B. No. 1039 amends the Texas Tax Code to allow certain counties, specifically those bordering the United Mexican States and containing a portion of the West Nueces River, to impose a hotel occupancy tax. This new provision, added as Subsection (kk) to Section 352.002, specifies that the tax does not apply to hotels located in municipalities that already impose a tax under Chapter 351. Additionally, the bill repeals Section 351.1035 of the Tax Code, which may have previously governed aspects of hotel occupancy tax.

The changes made by this Act will only apply to revenue collected on or after its effective date, ensuring that any revenue collected prior will still be governed by the previous law. The Act is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Tax Code 351.1035 (Tax Code 351)
House Committee Report: Tax Code 351.1035 (Tax Code 351)
Engrossed: Tax Code 352.002, Tax Code 351.1035 (Tax Code 352, Tax Code 351)