Monitoring the Session

HB 4412

Landgraf Hotel Tax Bill Fits One City, Kermit

Died in committee

Verdict: Smells

SmellsInitial review
Rep. Brooks LandgrafRHouse 81
Why it's charged
Bracket bill

THE TEXT

“This section applies only to a municipality that is the county seat of a county that borders New Mexico and contains a portion of a state park that is located in two counties.”

Bill text, House committee report version (H)

These geographic descriptors narrow a Tax Code section to a single city, which the committee statement names as Kermit. The caption's "certain municipalities" signals the narrowing and the stated purpose names the city, so the aim is disclosed rather than hidden.

Bracket bill

Initial review · graded Oct 22, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the use of hotel occupancy tax revenue for certain public improvement projects by certain municipalities.

Caption from analyzed text · version H.

Summary

Hotel tax covers up to 25% of a project. Eight years later, the rate caps at 2%.

The bill lets one city spend its hotel occupancy tax money on public improvement projects that directly benefit the hotel and tourism industry, on top of the uses already allowed. It reaches only a city that is the county seat of a county bordering New Mexico and containing part of a two-county state park, which the committee statement identifies as Kermit. The city may cover no more than 25 percent of any project with this money, must keep its other tourism spending at its prior three-year average, must stop the new spending after 2034, and must cut its hotel tax rate to no more than two percent eight years after it first uses the new authority.

Labels

Labels: GOT HALFWAY. Passed the House on May 14, 2025. Died in the Senate: never got out of the Economic Development committee.

Receipt

The receipt

89R-HB4412 · 2025-03-11

SOLD BY

Rep. Brooks LandgrafRHouse 81

ITEM

relating to the use of hotel occupancy tax revenue for certain public improvement projects by certain municipalities.

WHAT IT DOES

Hotel tax covers up to 25% of a project. Eight years later, the rate caps at 2%.

The bill lets one city spend its hotel occupancy tax money on public improvement projects that directly benefit the hotel and tourism industry, on top of the uses already allowed. It reaches only a city that is the county seat of a county bordering New Mexico and containing part of a two-county state park, which the committee statement identifies as Kermit. The city may cover no more than 25 percent of any project with this money, must keep its other tourism spending at its prior three-year average, must stop the new spending after 2034, and must cut its hotel tax rate to no more than two percent eight years after it first uses the new authority.

CHARGES

[x] BRACKET BILLanalysis confidence 60%

THE TEXT

“This section applies only to a municipality that is the county seat of a county that borders New Mexico and contains a portion of a state park that is located in two counties.”

Bill text, House committee report version (H)

These geographic descriptors narrow a Tax Code section to a single city, which the committee statement names as Kermit. The caption's "certain municipalities" signals the narrowing and the stated purpose names the city, so the aim is disclosed rather than hidden.

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · May 4, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Ways & Means
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Committee substitute considered in committee
  7. Testimony taken/registration(s) recorded in committee
  8. Left pending in committee
  9. Considered in formal meeting
  10. Committee substitute considered in committee
  11. Reported favorably as substituted
  12. Comte report filed with Committee Coordinator
  13. Committee report distributed
  14. Committee report sent to Calendars
  15. Considered in Calendars
  16. Placed on General State Calendar
  17. Read 2nd time
  18. Passed to engrossment
  19. Record vote RV#2362
  20. Statement(s) of vote recorded in Journal
  21. Read 3rd time
  22. Passed
  23. Record vote RV#2448
  24. Statement(s) of vote recorded in Journal
  25. Reported engrossed
  26. Received from the House
  27. Read first time
  28. Referred to Economic Development
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 101 yea · 34 nay

Sources

House: Final passage · May 14, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Brooks Landgraf

Donors

Texans for Lawsuit Reform PAC$50KOvintiv USA Inc. PAC$19KDiamondback Energy PAC$15K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 2, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$50,000.00

Texans for Lawsuit Reform PAC

$50,000.00

Cash
$50,000.00
Paid by others
$0.00
Total
$50,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 26, 2024 to Sep 14, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977404, 101009994, 101033682, 101069723.

Ovintiv USA Inc. PAC$19,000.00

Ovintiv USA Inc. PAC

$19,000.00

Cash
$19,000.00
Paid by others
$0.00
Total
$19,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Dec 12, 2024 to Sep 29, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Dec 12, 2024 to Dec 22, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977404, 101033682.

Diamondback Energy PAC$15,000.00

Diamondback Energy PAC

$15,000.00

Cash
$15,000.00
Paid by others
$0.00
Total
$15,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Aug 13, 2024 to Aug 14, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Aug 13, 2024 to Aug 14, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977404, 101061488, 101069723.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$50,000.00

Cash
$50,000.00
Paid by others
$0.00
Total
$50,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 26, 2024 to Sep 14, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977404, 101009994, 101033682, 101069723.

×

Ovintiv USA Inc. PAC

$19,000.00

Cash
$19,000.00
Paid by others
$0.00
Total
$19,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Dec 12, 2024 to Sep 29, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Dec 12, 2024 to Dec 22, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977404, 101033682.

×

Diamondback Energy PAC

$15,000.00

Cash
$15,000.00
Paid by others
$0.00
Total
$15,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Aug 13, 2024 to Aug 14, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Aug 13, 2024 to Aug 14, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100977404, 101061488, 101069723.

Votes2

House May 14, 2025

Yea
101
Nay
34
Present, not voting
2
Absent
10
Excused
3
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2448

HB 4412 was passed by (Record 2448): 101 Yeas, 34 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 101 (published)
  • Nay: 34 (published)
  • Present, not voting: 2 (published)
  • Absent: 10 (derived from named list)
  • Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 13, 2025

Yea
91
Nay
36
Present, not voting
1
Absent
6
Excused
16
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2362

CSHB 4412 was passed to engrossment by (Record 2362): 91 Yeas, 36 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 91 (published)
  • Nay: 36 (published)
  • Present, not voting: 1 (published)
  • Absent: 6 (derived from named list)
  • Excused: 16 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses6
For
3
Against
0
On
3
Names

For

  • Texas Hotel & Lodging Association1 registration
  • Texas hotel assn1 registration
  • Texas Travel Alliance1 registration

On

  • Texas Comptroller of Public Accounts3 registrations
Sources

6 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · May 4, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version H by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Mar 11, 2025

05/21/2025 S Referred to Economic Development

Texas Legislature Online · Introduced · House Committee Report · Engrossed

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Committee vote 12 aye, 0 nay, 1 absent · Out of committee

Senate committee · Economic Development · Final status: Died in committee

Subjects

KERMIT, CITY OF (G26YV)

Taxation--Hotel, Motel Occupancy

Text

The text as introduced · 466 words

By: Landgraf
H.B. No. 4412

A BILL TO BE ENTITLED

AN ACT

relating to the use of hotel occupancy tax revenue by certain

municipalities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 351.101, Tax Code, is amended by adding

Section 351.1080 to read as follows:

(a) This section applies only to a municipality that

(1) is the county seat of a county that borders New

Mexico and contains a portion of a state park that is located in two

counties;

(2) in the most recent completed fiscal year, hotel

occupancy levels within the municipality and its extraterritorial

jurisdiction exceeded 90 percent;

(3) in the most recent completed fiscal year, on

average, more than forty percent of the individuals within the

municipality and its extraterritorial jurisdiction stay within a

hotel within the municipality each night; and

(4) in the most recent completed fiscal year,

unexpended balances of municipal hotel occupancy tax revenue

exceeded $1.8 million.

(b) Notwithstanding any other provision of this chapter, a

municipality to which this section applies may use hotel occupancy

tax revenue collected by the municipality for a public improvement

project that will directly benefit the hotel and tourism industry.

(c) If a municipality to which this section applies uses

hotel occupancy tax revenue as provided by subsection (b):

(1) Not more than 25 percent of the public improvement

project's total costs may be funded with municipal hotel occupancy

tax revenue; and

(2) The municipality may not reduce the amount of

revenue that it uses for a purpose described by Section 351.101(a)

to an amount that is less than the average amount of revenue used by

the municipality for those purposes during the 36-month period that

precedes the municipality's use of revenue under Subsection (b).

(d) Within eight fiscal years of using municipal hotel

occupancy tax revenue for a purpose provided by subsection (b), a

municipality to which this section applies shall reduce the rate of

municipal hotel occupancy tax to no more than two percent of the

price paid for a room in a hotel and may not increase its municipal

hotel occupancy tax rate to no more than two percent of the price

paid for a room in a hotel.

(e) A municipality to which this section applies may not use

municipal hotel occupancy tax revenue for a purpose provided by

subsection (b) after December 31, 2034.

(f) This section shall expire on December 31, 2034, except

than subsection (d), which shall remain in effect.

SECTION 2. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.