Relating to the applicability of a hotel occupancy tax in and the use of hotel occupancy tax revenue by certain counties.

HB 2965 clarifies when counties can impose hotel occupancy taxes and specifies how certain counties must spend the resulting revenue. It prohibits counties from taxing hotels in municipalities that already impose such taxes, with limited exceptions for small counties adjacent to major cities or bordering the Neches River. Counties in the Edwards Aquifer Authority must use 75% of revenue for tourism/lodging in unincorporated areas and 25% for cleaning state-owned rivers. Similarly, counties along the Frio River must dedicate 25% of revenue to river cleanup and litter containers near rivers used by lodging guests. The bill directly affects specific Texas counties based on population and geography.