Did You Know Texas Has a Fund That Can Be Used for Traffic Safety?

Enhance Community Safety and Tourism with HOT Funds

This hidden source of funding from the Hotel Occupancy “HOT” Tax can help create safer streets in your city.

The SAM 3 radar speed trailer with the MC360 messaging trailer

Did you know Texas Hotel Occupancy Tax (HOT) funds can be used to purchase traffic safety products, such as messaging trailers and radar speed signs?

What Qualifies?

Under the Texas Tax Code 351.101(a)(b), HOT fund expenditures must pass a two-part test:

  1. Directly enhance and promote tourism and the convention/hotel industry.
  2. Fit one of nine approved categories for local HOT revenue spending (see the list at the end of this note).

While these funds cannot be used to pay for officers, weapons, or vehicles, non-enforcement safety equipment is generally considered to be an approved purchase.

Which Use Cases Count?

Many municipalities justify their purchase of products like our Message Center 360 (MC360) Message Trailers and SAM-3 Radar Trailers because they can fall under these approved HOT Tax use cases:

#1: Signage directing tourists to attractions and events frequently visited by hotel guests (e.g., speed control for safety or event directions).

#2: Promotional expenses for sporting events in counties under 1 million people (e.g., local football games or rodeos).

An Easy Way To Afford To Keep Your Community Safe

With modern challenges like natural disasters, public health crises, and security concerns, communities are increasingly discovering how useful messaging trailers and radar “Your Speed” signs are in directing traffic and keeping streets slow and safe.

As an added bonus, all Stalker/Street Dynamics radar trailers include Traffic Analyst® software, providing accurate traffic data to inform your governing body during major events. When not in use for HOT purposes, these trailers can serve your community in other ways.

To learn more or request a demo of the MC360, SAM-3, or other traffic safety products, contact your Texas Regional Sales Manager today!

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