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Brownsville CVB outlines hotel-occupancy tax uses and collection trends
Summary
The City of Brownsville’s Convention and Visitors Bureau presented its annual overview of hotel-occupancy tax collections, eligible uses under state law, recent visitor-impact estimates from Placer AI and upcoming hotel development that could affect collections.
The Brownsville Convention and Visitors Bureau presented an informational briefing on the city’s hotel-occupancy tax (HOT) and how the bureau evaluates and distributes those funds on July 15, 2025, at the City Commission meeting.
The presentation summarized how the tax is collected and the legal limits on spending. "We are your destination marketing organization for the city of Brownsville," said Mally Montesam, assistant director of the CVB. Montesam said the city retains 7 percent of the 13 percent total tax collected locally; the state receives 6 percent.
Montesam told commissioners that HOT revenues must meet criteria set in the Texas Tax Code (chapter cited in the presentation) and be used for tourism and convention-related purposes that fall within nine statutorily authorized categories, including advertising, promotion of the arts (subject to a 15 percent cap), sporting events, convention centers and historic preservation.
The CVB cited Placer AI data to describe visitor impacts for recent recipients of HOT funding: the Gladys Porter Zoo, sporting tournaments at Brownsville Sports Park, Lucha Libre events, Charter Days and the Children’s Museum of Brownsville. The presentation reported about $1.7 million in HOT collections in fiscal 2023 and about $1.9 million in fiscal 2024; the bureau presented an FY2025 figure in the slide deck that was not clearly read into the record during the meeting.
Montesam also described short-term operational details: the CVB manages the application and compliance process for HOT grants, provides workshops and guidance for applicants, coordinates recommendations from the HOT eligibility committee and monitors post-event reports and promotional outcomes. She said applicants must document how their activity promotes tourism, show expected attendance and disclose room-block reservations when applicable.
The presentation listed current and near-term hotel development that staff said could increase collections, including an EverHome Suites (about 92 suites, opened in June), a TownePlace Suites (about 122 rooms, opened late June) and a planned Embassy Suites (about 170 rooms). Commissioners asked about the data source used to estimate visitor behavior; Montesam said the CVB runs reports through Placer AI to estimate how many attendees stayed in local hotels.
No vote was required for the informational item. Commissioners thanked staff for the presentation and the CVB staff for outreach and training for prospective applicants.
