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Ellis County examines transient guest tax as a tourism-funded revenue option
Summary
Staff outlined a transient guest tax (up to 2% by resolution) and possible tourism-related uses; County Counselor Bill Jeter cautioned some proposed uses may not legally qualify as tourism promotion, and commissioners discussed starting collections in 2026 to use proceeds in 2027.
County Administrator Darin Myers described the transient guest tax as a potential revenue source during the budget discussion, explaining the county may set a tax of up to 2% by resolution (higher rates would require a charter resolution and voter approval). Myers listed potential uses such as supporting Grow Hays, economic development initiatives, the Ellis Junior Free fair, a Victoria satellite site for the Historical Society and scholarships for local universities, all framed as tourism-promoting activities.
County Counselor Bill Jeter cautioned that state law limits uses of the transient guest tax to activities that actually promote tourism, and he said he was not certain several of the suggested items would qualify. Myers said a transient guest tax could begin being collected in 2026 and would be usable in 2027 after reserves accumulated; commissioners asked staff to provide options and legal review before moving forward.
