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Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts

taxes

Hotel Occupancy Tax Exemptions


State hotel occupancy tax applies to charges of $15 or more per day for sleeping accommodations, meeting rooms and banquet rooms in a hotel or motel. The tax also applies to lodging at bed and breakfasts, condominiums, apartments and houses rented for less than 30 consecutive days. The state hotel tax rate is 6 percent.

Local hotel taxes apply only to charges of at least $2 per day for rooms ordinarily used for sleeping. The Comptroller’s office administers the state portion of the hotel tax. Each local government determines its local hotel tax rate, and the tax collected is sent to the local government entity. Information about local hotel tax responsibilities is available from the city and county governments where the property is located.

Who Can Claim Exemption

There are four types of guests who can claim a hotel tax exemption; they are explained in the following sections.

Application for Exemption

To apply for exemption, an organization 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.

Claiming the Exemption and Keeping Records

Except for permanent residents, every person claiming a hotel tax exemption must complete and provide Form 12-302, Texas Hotel Occupancy Tax Exemption Certificate (PDF), and proof of exemption to the hotel.

Hotels must keep all records, including exemption certificates, for at least four years. Exempt organizations can use one exemption certificate to claim exemption for more than one room.

Additional Resources


96-224
(06/2020)

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