The authority of certain counties to impose a hotel occupancy tax

House Bill 3179 allows certain counties in Texas to impose a hotel occupancy tax. Specifically, it grants this authority to counties with a population under 145,000 that contain a portion of Lake Ray Hubbard, and to counties where the Llano River and James River meet. The tax does not apply to hotels located in municipalities that already impose their own hotel occupancy tax.

Supporters argue that HB 3179 provides smaller counties with a valuable tool to generate revenue from tourism, which can be reinvested into local infrastructure and services, thereby boosting the local economy.

Critics contend that the bill could lead to higher costs for visitors, potentially deterring tourism. They also express concerns about the administrative burden on counties implementing the tax and the potential for overlapping taxation with municipal hotel taxes.