Texas Attorney General Ken Paxton issued an opinion on the authority of a municipality to use hotel occupancy tax revenue to fund the study, construction, and operational costs of a performing arts center. The opinion notes that hotel occupancy tax revenue must directly "promote tourism and the convention and hotel industry" and be expended for a set of specified permissible uses. Among other things, the opinion also urges municipalities to consider these criteria fully before using the revenue as their decisions are subject to judicial review. For full details of the AG’s determination please see the opinion.
