The bill amends the Texas Tax Code to clarify the applicability of hotel occupancy taxes and the use of the revenue generated from these taxes by certain counties. Specifically, it adds new provisions allowing counties authorized to impose a hotel occupancy tax under specific subsections to exclude hotels located in municipalities that already impose a similar tax. The bill also introduces new language regarding the use of tax revenue, stipulating that counties authorized under Section 352.002(a)(15) can allocate 75% of the revenue for purposes related to unincorporated areas, while the remaining 25% can be used for the removal of trash and litter in state-owned rivers and riverbeds.

Additionally, the bill establishes a new section (352.117) that allows counties authorized under Section 352.002(a)(16) to use tax revenue for similar environmental purposes, specifically targeting the removal of litter and the maintenance of litter containers in state-owned rivers and riverbeds primarily used by lodging guests. The bill mandates that these counties must allocate 25% of their tax revenue for these purposes. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Tax Code 352.002, Tax Code 352.110 (Tax Code 352)