Tex. Loc. Gov't Code § 382.155 – Hotel Occupancy Tax

(a) A county may authorize a district to impose a hotel occupancy tax on a person who pays for the use or possession of or for the right to the use or possession of a room that is ordinarily used for sleeping in a hotel in the district.
(b) If authorized by a county, a district shall impose a hotel occupancy tax in the same manner as provided by Section 352.107, Tax Code.
(c) The hotel occupancy tax rate is the greater of nine percent or the rate imposed by the municipality.
(d) A hotel occupancy tax imposed by a district in a county described by Section 382.002(1) may be used:
1. (1) for a purpose described by Chapter 352, Tax Code; or
2. (2) to encourage the development or operation of a hotel in the district, including an economic development program for or a grant, loan, service, or improvement to a hotel in the district.
  Transferred from Local Government Code, Subchapter C, Chapter 372 and amended by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.009, eff. September 1, 2009.
  Acts 2011, 82nd Leg., R.S., Ch. 846 (H.B. 3597), Sec. 3, eff. June 17, 2011.