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Commissioners OK hotel, motel tax
Move may gain $800,000 a year

 

By Joe Stinebaker
Copyright 1997 Houston Chronicle
Reprinted with permission
Article date: February 25, 1997
 

Commissioners Court approved a new 8 percent tax on hotel and motel bills in unincorporated Harris County Tuesday, a move expected to generate as much as $800,000 annually for the county.

The money from the tax will be pooled with revenues from hotel -occupancy taxes from inside Houston and other cities in Harris County. The money then will be used for tourism-related expenditures, not the least of which is paying off major Astrodome improvements from 1987 and 1988.

Revenue from the tax in unincorporated Harris County will be small when compared with the millions collected from the tax inside Houston's city limits. While the 8 percent tax in the county is expected to net about $800,000 a year, the county's 2 percent tax inside Houston brings in about $10.4 million.

County Judge Robert Eckels, a supporter of the new tax , said that in addition to generating new income for the county, the tax will help equalize the tax burden on hotels and motels throughout the county.

State law caps all hotel -occupancy taxes inside Harris County at 15 percent, but prescribes fairly specific breakdowns on who gets the money. Inside Houston, for example, the state collects 6 percent, the city gets 7 percent and the county takes 2 percent. In other Harris County cities, the county takes whatever share is left over after the state and the individual municipalities take their portions.

But, until Tuesday, hotel guests in unincorporated Harris County were charged only the state's 6 percent tax. Now, with the county taking its maximum possible share of 8 percent, the hotel -occupancy tax will be nearly uniform across the county.

In the same vote, Commissioners Court also approved selling bonds to refinance the earlier 1987 and 1988 bond issues for the Astrodome improvements. In a move similar to a homeowner refinancing his mortgage, the court expects to save taxpayers more than $7 million because of lower interest rates.

In other action, the court gave unanimous approval to County Attorney Mike Fleming's request that his office be appointed sole legal counsel for any local sports authority that might be created by the Legislature this year.

Fleming sought the court's support for a nonbinding resolution encouraging the Legislature to include his office in any such legislation.

Fleming and some other county officials fear that without such a role, the county could end up taking a back seat to the city or private sector in issues dealing with county-owned sports facilities such as the Astrodome and the proposed county-backed downtown baseball stadium.

The court also agreed Tuesday not to appeal a federal court decision that dismissed the county's suit seeking millions of dollars in federal crime-fighting money.

County officials had been trying since last year to get a larger share of a $6.4 million federal grant designed to reduce area crime. The U.S. Justice Department awarded $5.3 million to Houston and $1.1 million to Harris County, a formula that county officials consider unbalanced. The county sued for a larger share, but lost a decision by U.S. District Judge Nancy Atlas earlier this month.

The court, meeting in closed session Tuesday, decided not to appeal Atlas' decision, but directed Commissioner El Franco Lee to meet with city officials to get a larger share of any future grants. If that attempt is unsuccessful, Lee will lobby area congressmen to pressure the Justice Department into a more equitable distribution.
 

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