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 Section 352.002(a)(16) to use the revenue for the removal of trash and litter in state-owned rivers and riverbeds, as well as for the provision and maintenance of litter containers in these areas. Additionally, it specifies that a county must allocate 25 percent of the revenue derived from the tax for these purposes.

Furthermore, the bill modifies existing language regarding the exemption of hotel occupancy taxes for hotels located in municipalities that impose their own taxes. It expands the list of counties authorized to impose the tax by including additional categories, specifically those under Subsection (a)(16), (17), (19), (20), (21), (23), or (29). The bill aims to enhance the management of litter in natural areas frequented by lodging guests while ensuring that a portion of the tax revenue is dedicated to environmental maintenance. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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