Opinion No. KP-0131

The Honorable Dennis Bonnen

Chair, Committee on Ways & Means

Texas House of Representatives

Post Office Box 2910

Austin, Texas 78768-2910

Re: Authority of a municipality to use hotel occupancy tax revenue to fund a feasibility study and the construction, operation, and maintenance of a performing arts center (RQ-0122-KP)


Under section 351.101 of the Tax Code, a municipality may expend its municipal hotel occupancy tax revenue in the direct promotion of tourism and the convention and hotel industry, provided that the expenditure is for one of the specified uses listed in the statute. It is for a municipal governing body to determine in the first instance whether an expenditure of hotel occupancy tax revenue is proper under section 351.101.

For further information, please access the website at or call the Opinion Committee at (512) 463-2110.


Amanda Crawford

General Counsel

Office of the Attorney General

Filed: January 31, 2017