Texas lawmakers spent Tuesday discussing hotel occupancy taxes and whether the decades-old HOT programs are functioning as intended. That same day, the City of Dallas discussed in a Finance Committee meeting just how essential those revenues are in financing its new convention center.
Dallas told its Finance Committee that its project financing zone has generated $219 million to date, with annual collections now running nearly three times initial projections.
Hotel occupancy tax in Texas
The two meetings highlighted different parts of Texas’ complicated hotel-tax system: local hotel occupancy taxes collected and spent by cities, and project financing zones that let certain cities receive growth in state tax revenue generated around major convention and entertainment projects.
When you stay at a Texas hotel, part of your bill can include several layers of hotel occupancy taxes collected by the state, cities and, in some places, counties. Unlike the state’s share, local HOT revenue is generally restricted to specific uses that promote tourism and the hotel industry…