Hotel visitors in Fort Bend County could see an additional tax on their room bill, as county commissioners approved levying a hotel occupancy tax at the Aug. 13 meeting.

The overview

The additional tax is set to support tourism in the county, said Carlos Guzman, director of the county’s internal Economic Opportunity and Development department.

The tax in the county comes after the 88th Texas Legislature added provisions in 2023 to the Texas Tax Code that allows counties with over 650,000 residents to impose a hotel occupancy tax, or HOT, if they are adjacent to two counties with a population more than 1.8 million.

“HOT funds are special-use revenues which mean that they can only be used on items that will ultimately lead to more tourist dollars being spent within the county,” Guzman said. “This is important as the county now has a tool to promote tourism.”

Breaking it down

Guzman said the amount of tax depends on where hotels are located in the county, with a:

• 2% on the room cost for hotels within a city limit
• 7% on the room cost for hotels outside of a city limit

The county’s initial estimate of revenue from the tax is $2 million a year, he said.

What it means

According to the Texas Comptroller's website, HOT funds can be used for:

• Constructing and maintaining convention or visitor information centers
• Advertising and conducting promotional programs to attract tourists
• Promoting and improving arts programs
• Historical restoration and preservation projects
• Enhancing existing sports facilities
• Constructing and maintaining a multi-use facility
• Signage to attract the public to sights and attractions

What’s next

The hotel occupancy tax will become effective on Oct. 1, according to agenda documents.