S.B. No. 1592 introduces new regulations for the collection of state and local hotel occupancy taxes by accommodations intermediaries in Texas. The bill defines "accommodations intermediary" as an entity that facilitates hotel room rentals and collects related fees. It mandates that these intermediaries are responsible for collecting the appropriate hotel occupancy tax on each booking, reporting, and remitting these taxes to the comptroller, while hotels are prohibited from collecting taxes on bookings made through intermediaries. This ensures that the tax responsibility lies solely with the intermediaries, who will be treated as the managing entity for tax purposes.

Additionally, the bill outlines the comptroller's responsibilities in creating forms for intermediaries to report collected taxes and provides guidelines for the distribution of these taxes to municipalities. It includes provisions for public improvement districts that levy assessments against hotels, allowing intermediaries to collect these assessments under specific conditions. The bill also states that intermediaries cannot be held liable for incorrect amounts when collecting taxes or assessments. Municipalities and counties are required to notify the comptroller of their hotel occupancy tax rates by December 1, 2025, with the bill set to take effect on June 1, 2026.

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)