Hutto City Council will consider replacing its hotel occupancy tax use policy with a new, comprehensive policy, which aims to provide clearer guidelines and increase HOT revenue for tourism-related activities, according to city documents. It will review the new policy and consider taking action at a meeting April 3.

The breakdown

The new HOT fund policy provides guidelines for the use of the tax revenue to promote tourism and related industries in the city. It outlines eligibility criteria for applicants and the approved uses, and establishes a clear application, review and approval process. The updated policy proposal ensures that HOT funds are used responsibly and in compliance with state law, according to city documents.

The new comprehensive list of HOT fund uses includes:

• Convention center construction, promotional programs to attract tourists and registration services for events
• Promotion of the arts
• Historical restoration and museums
• Promotion of sports events that attract tourists and drive hotel bookings
• Enhancement of existing sports facilities
• Creation of signs directing tourists to popular sites and attractions

Some context

HOT is a tax charged on temporary stays in hotels, motels and short-term rentals. Revenue generated from HOT has limited uses and helps fund tourism efforts, economic development, infrastructure and local events.

Hutto last updated its HOT use policy in 2014.