SB 1592 - Hotel tax centralization

SB 1592 forces online booking platforms like Airbnb and Vrbo to collect not just state hotel occupancy taxes, but also local hotel taxes on behalf of cities, counties, and public improvement districts. These companies must send all collected taxes to the Texas Comptroller, who will then distribute the local portion back to each taxing entity—effectively making the state the tax collector for local governments. While pitched as a way to improve compliance, the bill centralizes a function that has historically been handled at the local level, and further reinforces this tax on Texans. It imposes a new 1% state administrative fee, meaning local governments lose revenue just for the privilege of the state managing their taxes. For these reasons, TFR opposes SB 1592.