S.B. No. 1592 amends the Texas Tax Code to clarify the responsibilities of accommodations intermediaries in the collection of state and local hotel occupancy taxes. The bill introduces a new section, 156.054, which defines "accommodations intermediary" and mandates that these entities collect the appropriate tax on booking charges, report, and remit these taxes to the comptroller. It specifies that hotels are prohibited from collecting taxes on booking charges made through intermediaries, thereby simplifying the tax collection process. The bill also allows the comptroller to adopt necessary reporting forms and establishes that intermediaries will only be audited concerning their tax collection activities.

Additionally, the bill addresses the collection of assessments by public improvement districts against hotels, permitting accommodations intermediaries to collect these assessments under certain conditions. It ensures that intermediaries are not liable for using incorrect tax rates if they adhere to the most recent list provided by the comptroller. Municipalities and counties are required to notify the comptroller of their hotel occupancy tax rates by December 1, 2025, and the majority of the bill's provisions will take effect on June 1, 2026. Overall, the legislation aims to enhance compliance and efficiency in the hotel tax collection process.

Statutes affected:
Introduced: Local Government Code 334.253 (Local Government Code 334)
Senate Committee Report: Local Government Code 334.253 (Local Government Code 334)
Engrossed: Local Government Code 334.253 (Local Government Code 334)