HB 2974 – HOT Tax Subsidy

HB 2974 allows the City of Midland to bypass existing state limits and secure additional tax rebates to fund not just one, but multiple hotel and convention center projects. These rebates include a wide range of taxes from associated restaurants, bars, and entertainment facilities. While this may benefit local developers, it does so at a direct cost to the state treasury—projected to exceed $1.2 million in just the first few years. From a fiscally conservative viewpoint, this is a classic example of government picking winners and losers, granting selective subsidies to certain favored projects. It undercuts free market competition by letting certain businesses benefit from taxpayer-funded incentives while others bear the full tax burden. It also creates precedent for more carveouts, encouraging a patchwork of city-specific giveaways. Rather than supporting broad-based tax relief, this bill funnels revenue to targeted developments that should rise or fall based on merit, not government aid.