Hotel Occupancy Tax Funding Program

The City of Brownsville Hotel Occupancy Tax Funding program is a locally administered funding opportunity designed to allocate revenue generated from hotel occupancy taxes toward initiatives that directly enhance tourism and the hospitality industry within Brownsville, Texas. Governed by Chapter 351 of the Texas Tax Code and corresponding municipal ordinances, the program is administered through the City of Brownsville in partnership with the Convention and Visitors Bureau and other city departments. The funding initiative reflects the City’s broader strategy to stimulate economic growth, increase visitor spending, and improve quality of life by supporting tourism-driven programming and infrastructure. The primary purpose of the program is to fund events, projects, and activities that can demonstrably attract overnight visitors and generate hotel stays within the city. Eligible uses of funds are strictly defined and must meet a two-part statutory test: expenditures must directly promote the hotel and convention industry, and they must fall within specific allowable categories such as advertising and promotion, arts and cultural programming, historic preservation, sporting events, convention services, and tourism-related facilities. Funds cannot be used for general governmental purposes or activities that do not have a clear and direct tourism impact. Applicants may include governmental entities, nonprofit organizations, and for-profit corporations registered in Texas, provided they meet eligibility requirements such as maintaining good standing with the state, demonstrating organizational capacity, and hosting activities within Brownsville or its immediate jurisdiction. Preference is given to applicants that can quantify their impact on hotel occupancy through metrics such as room-night generation, reserved hotel blocks, historical attendance data, and targeted marketing strategies aimed at out-of-town visitors. Non-local applicants must partner with a Brownsville-based organization and provide documentation of that relationship. The application process requires submission of detailed organizational and project information, including a full description of the proposed event or program, a marketing plan, expected attendance figures, hotel usage strategy, and a comprehensive budget. Applicants must also provide supporting documentation such as financial statements, proof of organizational status, governance information, and marketing samples. The program includes structured reporting requirements based on award size, with obligations ranging from post-event reporting to full quarterly financial and performance reporting. Recipients must maintain accurate financial records and comply with all audit and compliance standards. The funding timeline for the program follows the City’s fiscal planning cycle. The application period opens in mid-May and closes in early July, with internal review and funding recommendations occurring in July. Final approval is granted by the City Commission in late summer, and funded projects begin at the start of the fiscal year on October 1. Initial disbursements are typically issued between late October and early December, subject to contract execution. The program operates on an annual cycle aligned with the City’s fiscal year, which runs from October 1 through September 30. Evaluation of applications is conducted by the HOT Funds Committee, which includes representatives from multiple City departments. Applications are assessed based on their ability to promote tourism, generate overnight stays, align with statutory requirements, and provide measurable economic impact. Additional consideration may be given to projects that leverage matching funds or demonstrate strong community benefit. Final funding decisions are made at the discretion of the City Commission, and all awards are subject to available funding and compliance with applicable regulations. The program includes strict compliance, reporting, and accountability requirements. Recipients must acknowledge City support in promotional materials, maintain segregated financial tracking for HOT funds, and submit required reports within specified timelines. Failure to comply with reporting or eligibility requirements may result in withholding of funds, termination of contracts, or repayment obligations. Overall, the program represents a structured and performance-driven funding opportunity aimed at strengthening Brownsville’s tourism ecosystem through strategic investment in visitor-attracting initiatives.

Emphasize measurable hotel occupancy impact, provide strong out-of-market marketing strategy, include documented room blocks or visitor projections, and clearly align project with Texas Tax Code eligible categories