Hotel Occupancy Tax FAQs

The Hotel Data Search page was removed from the Comptroller website in accordance with Senate Bill 1086 (PDF), passed during the 85th legislative session. This bill prohibits state agencies from posting hotel receipts information from a business on a public website. Users are still permitted to request the data by submitting an open records request.

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.

• The U.S. government and its employees traveling on official business.
• Foreign diplomats issued a tax exemption card by the U.S. Department of State, unless the card specifically excludes hotel tax.
• Certain Texas state officials with special hotel tax exemption cards (includes heads of state agencies, members of state boards and commissions, judicial officials at the district court level and above, state legislators and legislative employees).
• Permanent residents who occupy a room for at least 30 consecutive days. Any interruption in the term of occupancy will void the exemption.
  • Guests who stay 30 or more days and notify the hotel in writing of their intention beforehand are exempt from the day of notification.
  • Guests who do not notify the hotel must pay the tax the first 30 days and are exempt thereafter.
• Some nonprofit entities and their employees traveling on official business.
  • The entity must have received a hotel tax exemption letter from the Comptroller's office.
  • The reason for the exemption must be written on the exemption certificate. For example, "exempt per Electric Cooperative Act, Utilities Code, Chapter 161" or "exempt per Telephone Cooperative Act, Utilities Code, Chapter 162."

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.

• Exempt religious organizations include nonprofit churches and their guiding or governing bodies, but do not include missionary organizations, Bible study groups or churches made up only of family members.
• Charitable organizations include nonprofit organizations whose sole purpose is to provide food, clothing, drugs, treatment or shelter directly to indigent and needy persons. Not included are 501(c)(3) not-for-profit corporations, social groups, professional or business groups, fraternal organizations, or similar organizations.
• Educational organizations include independent school districts, public and private elementary and secondary schools, and Texas institutions of higher education (public and private colleges, universities, junior colleges, and community colleges). Not included are research organizations, home schools and organizations that mainly provide support services to schools. Effective October 1, 2003, non-Texas institutions of higher education no longer qualify for exemption.

To apply for exemption, qualifying religious, charitable and educational organizations must complete and submit the appropriate application and supporting documentation. If an organization qualifies for the exemption, the Comptroller's office will send instructions on how to get an exemption verification letter. For additional information on exemptions, please refer to Hotel Occupancy Tax Exemptions.

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 employees traveling on official state business can request a reimbursement of the state and local hotel taxes on their travel vouchers.

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:

• federal employees traveling on government business - a valid government identification card;
• designated Texas state employees - a special hotel tax exemption photo ID or card that states the holder is exempt from hotel taxes;
• foreign diplomats - a tax exemption card issued by the U.S. Department of State that exempts the diplomat or mission, unless the card specifically excludes hotel tax;
• employees and representatives of a specific nonprofit entity or a nonprofit charitable, educational or religious organization traveling on organization business - a Comptroller's letter of hotel tax exemption or verification that the organization is on the Comptroller's list of exempted entities, such as a printed copy of the Comptroller's Tax-Exempt Entity Search showing the organization is exempt for hotel tax.

Yes, starting in 2018 municipalities must report their local HOT information to the Comptroller every year. The reporting period opens on Jan. 1st and closes Feb 20th. Please review the Municipal Hotel Occupancy Tax Reporting webpage for more information.

State hotel occupancy tax (HOT) must be collected and remitted to the Comptroller’s office for all short-term rentals in Texas ["short-term rental" means the rental of all or part of a residential property to a person who is not a permanent resident; i.e., rental of a property for 29 days or less. See Tax Code Section 156.001(b), Definitions. Short-term rental platforms (STRPs) that have an agreement with property owners to collect and remit state HOT on their behalf are required to collect and remit the tax. The collecting STRP must complete and submit Form AP-102, Hotel Occupancy Questionnaire, to the Comptroller's office. If an STRP does not agree to collect state HOT on behalf of the property owner, the property owner is responsible for collecting and remitting state HOT to the Comptroller’s office for their short-term rentals.

When a property owner only rents properties through an STRP that assumes the collecting and remitting responsibility, the property owner is not required to collect and remit state HOT. The property owner should contact the county and city where the short-term rental is located for more information about collecting and reporting local HOT.

The property owner should contact the STRP regarding questions relating to the remittance of state HOT on the registered property.

A property owner must collect and remit state HOT for the short-term rentals that are not done through a platform that has agreed to collect on their behalf. Stated another way, the property owners are required to collect and remit the tax for rentals made on their website or a non-collecting STRP. The property owner should contact the county and city where the short-term rental is located for more information about collecting and reporting local HOT.

Property owners should frequently check with their collecting and non-collecting platforms regarding the platforms’ terms and conditions and the responsibilities of each party, as these terms and conditions may change.

Property owners providing short-term properties through their own website or through a non-collecting STRP may allow an exemption from state HOT for certain qualified persons. See Rule 3.161 (b) (1-6), Definitions, Exemptions, and Exemption Certificate for guidance on exemptions. Property owners must keep the necessary documentation to support the exemption.

When a property owner only rents properties through a collecting STRP, the property owner is not responsible for determining whether an exemption applies. In such cases, if a property owner is concerned with whether exemptions will be allowed for their properties, the property owner should contact the STRP to find out how they apply exemptions.

In the event of an audit, the property owner should contact the STRP to obtain their account's transaction history and provide that information to the auditor.

Property owners should contact the STRP for information on collecting and reporting.

Generally, the STRP will not report any personally identifiable information (PII) regarding the property owners or guests on its Texas Hotel Occupancy Tax Report to the Comptroller’s office. The STRP will likely only report the total receipts and total taxable receipts for each city and county. There may be instances when the STRP will report PII for certain property owners depending on the STRP’s agreement with the Comptroller’s office or the STRP’s agreement with certain property owners. A property owner should contact the STRP for any questions regarding what information the STRP reports to the Comptroller’s office.

Only individuals required to file a Hotel Occupancy Tax Report may deduct 1 percent of the tax amount due, as indicated on the report, to cover the costs of collecting the tax. Therefore, property owners cannot claim the timely filing discount for rentals made on the collecting STRP. However, property owners may take the timely filing discount for rentals made on their own websites or on non collecting STRPs.