Virdell introduces bill that would grant Kerr County hotel occupancy taxes

State Rep. Wesley Virdell introduced legislation Friday that would authorize Kerr County to collect hotel occupancy taxes from lodging establishments in unincorporated areas, a move that has divided local residents and officials.

The bill would amend the Texas Tax Code to allow Kerr County, specifically identified as the county containing the Guadalupe River headwaters, to impose a 7% tax on hotel stays and short-term rentals outside city limits. Hotels within Kerrville and Ingram, which already collect municipal hotel taxes, would be exempt.

County officials estimate the tax could generate approximately $400,000 annually, with proceeds earmarked for maintenance and renovations at the Hill Country Youth Event Center. The Kerr County Commissioners Court passed a resolution in November 2023 requesting this legislative authority.

“This keeps Kerr County competitive with our neighbors,” said Jake Williamson, General Manager of the Hill Country Youth Event Center, noting that about 80 Texas counties already collect similar taxes, including neighboring Bandera, Kendall, Gillespie, Llano, Real and Uvalde counties.

However, local opposition groups, including We the People – Liberty in Action, argue the tax could harm property owners who rely on short-term rentals for income. Critics contend the 7% county tax, combined with existing state taxes, would push total lodging taxes to 13% and potentially discourage visitors from staying in rural areas.

The bill’s introduction by Rep. Virdell comes as a surprise to some observers, as opposition groups had previously suggested he would be unlikely to support such a measure. If passed, the legislation would take effect September 1, 2025, unless it receives a two-thirds majority vote in both houses for immediate implementation.