Texas SB2189 amends hotel occupancy tax rates and usage in coastal municipalities with populations under 5,000.

Texas SB2189 amends the Tax Code to allow coastal municipalities with populations under 5,000 to exceed the standard seven percent hotel occupancy tax rate, up to eight percent, if approved by voters. The increased revenue can be used for public improvements and beautification projects, including pedestrian safety and accessibility enhancements. The municipality cannot spend more on these projects from the tax revenue than it does from other sources. These provisions expire December 31, 2035.

Texas SB2189 amends hotel occupancy tax rates and usage in coastal municipalities with populations under 5,000.

Texas SB2189 amends the Tax Code to allow coastal municipalities with populations under 5,000 to exceed the standard seven percent hotel occupancy tax rate, up to eight percent, if approved by voters. The increased revenue can be used for public improvements and beautification projects, including pedestrian safety and accessibility enhancements. The municipality cannot spend more on these projects from the tax revenue than it does from other sources. These provisions expire December 31, 2035.