In the early 1970s, the Texas Legislature authorized municipalities to begin collecting the local hotel occupancy tax (HOT). Almost two decades later, the Legislature offered hotel occupancy taxing authority as one of several revenue options to support sports and community venues. The tax may be levied by a city, county or a partnership between the two.
In 2017, the 85th Legislature passed Senate Bill 1221 with the intent of increasing local government transparency while also allowing the public to better understand the state’s patchwork of municipal HOTs. To comply with Tax Code Section 351.009, municipalities that impose certain HOTs now must annually report their tax rates and revenue amounts, including the percentage of revenue allocated for specific uses, from the preceding fiscal year.
To learn more about state and local hotel taxation in Texas, please review the article entitled The Hotel Occupancy Tax: A Short History of a Complex Levy in the June 2016 edition of the Comptroller’s Fiscal Notes publication.
A municipality that imposes a HOT authorized by Tax Code Chapter 351, Subchapter A must report certain information in accordance with either Option 1 or Option 2, as described below.
The Comptroller’s office has created an online form requesting the following required information from municipalities electing to report under Option 1:
Municipalities electing to use Option 2 must provide the Comptroller’s office a direct internet link, through the Comptroller’s online form, where an interested party can easily find the required information described above in a clearly stated format. The Comptroller has developed an optional template that municipalities may use if they elect to report using this second option.
Municipalities have a 50-day window to report the required information. They must submit all required information no later than February 20 of each reporting year. Starting in 2018, the annual reporting period begins on January 1 and ends on February 20.
While SB 1221 does not require the Comptroller to post submitted HOT information on its website, this office nonetheless intends to make available all municipal data and direct websites provided to it during the reporting period. Please check back for a downloadable dataset containing the pertinent information.
No. Only municipalities that impose a HOT under Tax Code Ch. 351, Subch. A must provide the required tax information.
No. Municipalities subject to the reporting requirements of Tax Code Sec. 351.009 must compile the required information. They must provide the pertinent tax revenue information to the Comptroller either in the format specified by the Comptroller or make the report available for public inspection and post it continuously on the municipality’s website, [in accordance with the requirements of Tax Code Sec. 351.009].
No. The reporting only pertains to revenue totals collected and allocated during the most recent fiscal year. When submitting or posting the required information, do not include allocations of revenue collected by the municipality prior to the most recently completed fiscal year, even if an allocation of such revenue occurred during the most recently completed fiscal year.
Yes. If a municipality imposes a local HOT tax under Tax Code Ch. 351, Subch. A, a report must still be submitted every year even if no HOT revenue was collected during the most recently completed fiscal year.
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.