TX HB2965

Adds counties authorized under Section 352.002(a)(16) to the list of counties whose hotel occupancy tax does not apply to hotels located in municipalities that already impose their own municipal hotel tax under Chapter 351

Modifies revenue allocation for counties wholly located in the Edwards Aquifer Authority, requiring 75% of hotel tax revenue be used for purposes described in Section 351.101(a) and only in unincorporated areas of the county (previously designated for "promotion of tourism and lodging")

Maintains requirement that 25% of revenue for Edwards Aquifer Authority counties be spent on trash removal from state-owned rivers/riverbeds and litter container provision within county boundaries

Creates new Section 352.117 allowing counties through which the Frio River flows to use hotel tax revenue for trash and litter removal from state-owned rivers and riverbeds, and for litter container provision in areas primarily used by lodging guests

Requires Frio River counties to spend 25% of their annual hotel tax revenue on river cleanup and litter container purposes

Takes effect immediately with two-thirds legislative vote, otherwise September 1, 2025