The Texas Hotel and Lodging Association told a Senate committee that local hotel occupancy tax revenue should stay dedicated to promoting tourism and the hotel and convention industry. The association published its account of the hearing on 29 September 2026 under the byline of Justin Bragiel, its general counsel.
The Senate Committee on Economic Development met at 9:00 AM on Tuesday 22 September 2026 in room E1.016, with Senator Angela Paxton in the chair. The committee heard invited testimony only. The association's own post prints no date for the hearing.
The two hotel-tax charges
The notice carried two interim charges on hotel taxes. Ensuring Local Hotel Occupancy Tax Accountability directs the committee to study the collection, reporting and use of state and local hotel occupancy tax revenues, to review data and outcomes under the current framework, and to recommend how local incentives keep long-term fiscal accountability.
Strengthening Oversight of Project Finance Zones directs the committee to study the fiscal impact of multiple project finance zones authorised within individual cities under Chapter 351 of the Tax Code, and to weigh whether each new zone should require specific legislative approval.
A third charge on the same notice covered the Texas workforce and artificial intelligence. The association's account addresses the two hotel-tax charges and leaves the workforce charge alone.
What THLA says it told the committee
The association states that it answered senators' questions on the use of local hotel occupancy tax revenue, on tax collections from short-term rental bookings and on project finance zones.
The association states that it highlighted the strength of the Texas convention industry and the need to keep building meeting and event facilities.
Next before the legislature
The association states that the issues discussed at the hearing are likely to come before the Texas Legislature when its regular session opens on 12 January 2027.
The association states that it will publish its full legislative agenda next month.