TX SB2189

Allows eligible coastal municipalities with a population of 5,000 or less that have a state highway ferry system to increase their hotel occupancy tax rate above the standard limit, up to a maximum of 8% of the room price, if approved by voters in an election

Adds "streetscapes" to the list of public improvements that eligible coastal municipalities can fund with hotel occupancy tax revenue for bond payments and maintenance/operation purposes

Permits qualifying municipalities that adopt a tax rate above 7% to use the additional revenue for streetscape beautification, main street improvements, and pedestrian safety and accessibility enhancements

Limits annual spending on streetscape and main street improvements from the increased tax revenue to no more than the amount the municipality spends on those purposes from all other funding sources combined

All provisions authorizing the increased tax rate and expanded uses expire on December 31, 2035, and the act takes effect immediately with a two-thirds vote or September 1, 2025, otherwise