A hotel's owner, operator or manager must collect hotel taxes from their guests. For the purposes of the state 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.
The state hotel tax rate is 6 percent.
Cities and some counties and special purpose districts can each levy local hotel taxes, generally at rates varying up to 7 percent; sports and community venue projects can levy hotel taxes at rates varying up to 2 percent, except for Dallas County which can impose a hotel venue tax at a rate of up to 3 percent.
For example, in Houston there is 6 percent state tax, 7 percent Houston tax, 2 percent Harris County tax and 2 percent Harris County - Houston Sports Authority tax.
The Comptroller's office collects and administers the 6 percent state hotel tax, while cities and counties are responsible for collecting their own local hotel taxes.
There are various factors that affect the answer to this question, so please call our Hotel Occupancy tax help line toll-free at 800-252-1385 to discuss your situation with a tax specialist.
While the Comptroller's office does not issue printed hotel tax permits, businesses that report the tax should send a completed Form AP-102, Hotel Occupancy Tax Questionnaire (PDF) to the Comptroller's local field office.
Owners and operators should contact the county and city where their hotel is located for more information about collecting and reporting local hotel taxes.
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.
Religious, charitable and educational organizations that have received a letter of exemption from the Comptroller's office are exempt from the 6 percent state hotel tax. The exemption extends to their employees traveling on official business, but does not apply to any local hotel taxes, which must be paid.
Complete Form 12-302, Texas Hotel Occupancy Tax Exemption Certificate (PDF), and provide required documentation to the Comptroller’s office. For additional information on exemptions, please refer to Exempt Organizations - Sales and Purchases (PDF).
A hotel is liable for tax if a guest fails to stay for 30 consecutive days. In this case, a hotel may prefer to collect tax and then later give the guest a refund or credit.
The payment method of an exempt organization’s employee does not affect the exemption. Non-employees of an exempt organization, however, must pay the hotel with the organization's funds (organization check, credit card or direct billing).
No, third-party contractors completing contracts for the government or using federal grant money are not exempt and must pay state and local hotel taxes.
No, state agencies (except Texas institutions of higher education) and their employees (except certain state officials described above) must pay state and local hotel taxes. State agencies can request that paid state and local hotel taxes be refunded to their employees.
No, county and city agencies and their employees must pay state and local hotel taxes, and cannot request refunds of taxes paid.
An exempt organization or its employee must give the hotel a completed Form 12-302, Texas Hotel Occupancy Tax Exemption Certificate (PDF), and proof that the organization has received a letter of hotel tax exemption from the Comptroller's office at the time of registration. Organizations that have received hotel tax exemption can be found by using the Comptroller's Tax-Exempt Entity Search.
Hotels can accept exemption certificates in good faith when the guest provides the following supporting documentation:
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.