New Report. 5 Problems with Texas Hotel Motel Tax. Who. What. Why.

The Report is by: Texas Public Policy Foundation

The Report:  THE HOTEL OCCUPANCY TAX IN TEXAS

The issues it has with the hotel motel tax in Texas?

• the combined, state & local, rates are 15-17.5%
• discourages tourism
• “siphons” money from local businesses 
• no accountability that the tax funds projects that increase tourism

The solutions:

• require reporting from organizations that receive hotel motel revenue
• link the reporting requirements to renewal of hotel motel funds for the recipient organizations
• if there is no return on invesgtment from hotel and motel funds, eliminate the grants
• cut or eliminate the hotel motel tax (limited government. low taxes)