Court votes to end county hotel occupancy tax

The Hill County Commissioners Court voted to cease county hotel occupancy tax collections during a regular meeting held Tuesday, May 27.

Commissioners have been discussing the issue at recent meetings, trying to decide whether to continue collecting the tax and, if so, how to ensure that all those renting rooms in the county are collecting it as required.

The county adopted the tax in 2007 after a group of Hill County residents introduced the idea to promote tourism. The tax is collected from hotels, motels and those offering short-term rentals through Airbnb and similar platforms in unincorporated areas of the county.

The tax proceeds can only be used for economic development efforts that support tourism and lead to “heads in beds” for those renting rooms in unincorporated Hill County.

In the past, the county has used that money for advertising and the county’s TexasGetawayVacation.com website.

A recent survey of those renting rooms to visitors in unincorporated Hill County found that the majority were in favor of eliminating the tax.

The court considered several agenda items last Tuesday related to the tax collection. Precinct 1 Commissioner Jim Holcomb abstained because he operates an Airbnb rental.

Commissioners voted to cease collections effective June 30. The county’s month-to-month contract with GovOS, the hotel occupancy tax payment platform, will be continued until August 19 to allow those collecting the tax to remit payments to the county.

The court also voted to end contracts related to the hotel occupancy tax revenue, including with Sheri Hemrick and Go Daddy for the Texas Getaway Vacation website.

County Auditor Susan Swilling provided commissioners with a list of acceptable ways to spend the money already collected and revenue that will be collected through June 30, adding that the county wants to find the best use for it to promote tourism.

After discussion, the court opted to form a committee to research ways to best spend the money.

The court observed and recorded the County Auditor’s Annual Report for the fiscal year that ended September 30, 2024. The report details the tax levy, amount of outstanding bonds, revenues and expenditures, and a balance sheet for each county fund.

The full report is available online at http://www.co.hill.tx.us/page/hill.countyauditor-financial.
Commissioners also observed and recorded the annual audit of finances for Emergency Services District (ESD) 2. County Judge Shane Brassell said that there were no findings, and the ESD is doing well.

County Treasurer Rachel Parker presented a discussion item regarding management of county credit cards. She said that there is currently an issue with some offices being allowed to keep a credit card on hand for expenses and others having to check out a card from her office and return it after each transaction.

Parker said that the cards are secure and she receives text messages about large transactions. She said that the county needs to find a way to streamline the process while complying with local government code.

The county will form a committee to come up with a policy that works for all offices, and the issue is expected to be before the court for action at a future meeting.

The court discussed a request to change the employment of Public Safety Communications Technician Chris Clark from 30 hours to 40 hours a week in the Hill County Emergency Management department. Chris Jackson is now working in communications under the sheriff’s office, which frees up money in the budget to increase Clark’s hours.

Judge Brassell asked the court to take no action, saying that emergency management employees are hired by the county judge, so he will make the necessary adjustment. The judge added that he would like for emergency management roles as they relate to the sheriff’s office to be addressed during upcoming budget discussions.

In other action, the court voted to continue a contract between the sheriff’s office and the U.S. Department of Defense that has been in place for decades. Under the program, law enforcement agencies have access to federal equipment at no cost to the county.

Commissioners also approved allowing Precinct 2 to trade in a 2007 International 4300 water tank truck for a 2007 Sterling 9500 water tank truck.

The court’s next regular meeting is scheduled for Tuesday, June 10, at 8:30 a.m. in the county courtroom of the Hill County Courthouse.