Attorney General Opinion. How can a city use Hotel Motel Taxes?

Who requested the opinion? Chairman Dennis Bonnen

What question about the use of hotel motel tax revenue does he want answered? Whether a local government can use hotel occupancy tax revenue to fund a feasibility study for a performing arts center.

What’s the kerfuffle? The City of Lakeway attorneys believe they’ve met the statutory requirements to move forward with the feasibility study. Some in the hotel motel industry think there is no specific permission to use the revenue in this manner.

RQ-0122-KP