Relating to authorizing certain counties to impose a hotel occupancy tax and the use of revenue from that tax.

HB 4926 authorizes specific small Texas counties (population under 100,000, bordering the Navasota River, and hosting an annual Renaissance Festival) to impose a hotel occupancy tax. The tax rate cannot exceed 7% for most hotels, but is limited to 2% if the hotel is in a municipality already taxing hotels. Revenue from this tax must be used exclusively for: (1) building/maintaining civic centers with arenas for rodeos/agricultural events, (2) tourism promotion, or (3) historical preservation efforts. Nonprofit hotels (501(c)(3)) are exempt from this tax.