A recently signed bill allowing municipalities to use hotel occupancy tax (HOT) funds for sports facility improvements could have an impact in Buda in the future.
SB 1136, authored by Juan Hinojosa (D-McAllen), was signed into law effective immediately on May 29 due to a soccer field that needed new lighting in Edinburg, which could draw in large crowds and sponsor sporting events.
Buda was able to piggyback onto the bill with the intention of making various improvements to the Buda Sportsplex, such as stadium style lighting and possible seating upgrades.
“It’s going to give us the ability to use our HOT funds in support of improvements at the Sportsplex like lights, possibly more grandstands, and a variety of other improvements that may come up along the way,” Buda mayor Todd Ruge said.
In addition to being able to host large scale sporting events, the city could also improve the baseball and softball fields at the sportsplex, which could provide a “better venue,” said David Marino, Buda public information officer.
“An upgraded Sportsplex will provide a better venue for local little league teams or other sports-related activities in Buda ... Some of the improvements needed include lights, improved bleacher area, batting cages, new concession facility and additional fields.”
David Marino, Buda public information officer
“An upgraded Sportsplex will provide a better venue for local little league teams or other sports-related activities in Buda,” Marino said. “Some of the improvements needed include lights, improved bleacher area, batting cages, new concession facility and additional fields.”
Ruge said the consequences for taxpayers based on the passage of this bill is nonexistent, as the funds from the HOT fund come from Buda visitors, not residents.
According to the Texas Comptroller’s website, hotel owners, operators or managers must collect a six percent state HOT from their guests who rent a room costing $15 or more per day.
Municipalities can also impose a HOT on rooms costing $2 or more per day.
Visitors who stay in Buda and Kyle are assessed an additional seven percent HOT on top of the state rate.
Per state laws, however, HOT funds can only be used to directly promote a city and must meet at least one of nine different criteria to be collected.
Ruge said money from the HOT fund goes to the Tourism Department and the Main Street program.
The new law gives Buda another avenue to access excess money in that HOT fund.
“This was just a mechanism to move some of that surplus money in that fund to help improve our parks,” Ruge said.
Marino said improving Sportsplex could potentially attract visitors to Buda, where they can explore downtown, as well as other Buda parks.
“It really brings us a level of exposure that we normally wouldn’t get,” Marino said, “People who live in Buda love its charm, this gives us an opportunity to show others what Buda is all about.”
