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For the purposes of the hotel tax, a hotel is considered to be any building in which members of the public rent sleeping accommodations for $15 or more per day. Local hotel taxes apply to sleeping rooms costing $2 or more per day.
The tax covers hotels, motels, and bed and breakfasts, as well as condominiums, apartments, and houses rented for less than 30 consecutive days.
Hotel tax does not apply to hospitals, sanitariums, nursing homes, student dormitories operated by colleges and universities; or condominiums, apartments, and houses leased for more than 30 consecutive days.
A hotel's owner, operator, or manager must collect hotel taxes from their guests.
The state hotel tax rate in is 6% and the local tax rate is 1% for a total of 7% hotel tax rate.
Yes, there is state hotel tax on meeting and banquet rooms. The 6 percent state hotel tax applies to any room or space in a hotel, including meeting and banquet rooms.
Local hotel taxes, however, are due only on those rooms ordinarily used for sleeping. There are no state or local hotel taxes on meeting and banquet rooms located in a building where no sleeping accommodations are provided.
The following organizations and individuals do not have to pay hotel tax:
Some hotels collect tax after a permanent resident gives written notice because a hotel is liable for tax if a guest fails to stay for 30 consecutive days and thus may prefer to collect tax and then later give the guest a refund or credit.
No, Texas state agencies and their employees are not exempt for hotel tax.
State agencies (except Texas institutions of higher education) and their employees (except certain state officials described in the code) must pay state and local hotel taxes.
State agencies can request a refund of state and local hotel taxes paid or reimbursed to employees (Chapter 351.006).
No, county and city agencies and their employees are not exempt from hotel taxes. They must pay state and local hotel taxes, and cannot request refunds of taxes paid.
For a hotel guest to claim a hotel tax exemption, the exempt organization or employee must give the hotel a completed Hotel Occupancy Tax Exemption Certificate (form 12-302) and proof that the organization has received a letter of hotel tax exemption from the Comptroller's office at the time of registration.
The on-line list of organizations that have received hotel tax exemption is located through the Comptroller's Exemption Search.
Hotels need the following supporting documentation to verify a hotel tax exemption: