HB 2974 – Hotel Tax Subsidies

HB 2974 significantly expands the number of cities eligible to receive state tax subsidies for building hotels and convention centers, effectively diverting public funds to private tourism developments. It grants these municipalities the ability to capture state sales and occupancy taxes for up to 10 years, costing taxpayers over $143 million in future revenue. While the bill claims to promote tourism, it continues the flawed practice of government picking winners and losers in the private sector. Rather than lowering taxes or funding essential services, this bill sends taxpayer money to underwrite speculative hotel ventures. It also adds red tape by layering in new requirements and city-specific carve-outs, further complicating an already bloated and complicated tax code. This is corporate welfare masquerading as economic development. Instead of subsidizing luxury hotels, Texas should be cutting taxes for all and focusing on core government functions.