Canales proposes bill to increase tax free hotel period to 60 days.

Bills would fill loophole on hotel-motel taxes in oil country

Hotel rooms and worker lodges are full across South and West Texas, as the oil and gas industry rushes to drill thousands of new wells.

And communities across the state are more than happy to take the hotel-motel taxes.

But not long into the oil boom, it became clear that there's a loophole at work.

Workers who stay in a hotel for at least 30 consecutive days don't have to pay the hotel-motel tax at all.

And given the lack of available rental homes and apartments in the regions, companies are housing workers in hotels and special lodges that cater to the industry.

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