transparency

Local Hotel Occupancy Tax Reporting

Revenue and Rate Reporting under Tax Code Section 351.009 and 352.009

Overview

In the early 1970s, the Texas Legislature authorized certain local governments to begin collecting a 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 Texas Tax Code Section 351.009, municipalities that impose certain HOTs must annually report their tax rates and revenue amounts, including the percentage of revenue allocated for specific uses, from the preceding fiscal year. In 2021, the 87th Legislature passed Senate Bill 1655, expanding this reporting requirement to include counties under Texas Tax Code Section 352.009.

Reporting Requirements

A municipality or county that imposes a HOT under Texas Tax Code Chapters 351 or 352, or under Subchapter H, Local Government Code Chapter 334 must report certain information to the Comptroller through our online form, by either:

• entering all required information into the online reporting form; or
• submitting a direct website URL to the posted information or a clear statement describing the location of the information on its website. Optional online reporting template (XLSX)

The following information is required under Texas Tax Code, Sections 351.009 and 352.009:

• The percentage rate of the HOT imposed under Texas Tax Code Chapters 351 or 352.
• If applicable, the percentage rate of the HOT imposed under Subchapter H, Texas Local Government Code Chapter 334.
• The dollar amount of revenue collected during the preceding fiscal year from the HOT imposed under Texas Tax Code Chapters 351 or 352.
• If applicable, the dollar amount of revenue collected during the preceding fiscal year from HOT imposed under Subchapter H, Local Government Code Chapter 334.
• MUNICIPALITIES ONLY: The dollar amount and percentage of the revenue collected from HOT under Texas Tax Code Chapter 351 and allocated during the preceding fiscal year to each use described by Section 351.101(a)(1), (2), (3), (4), (5), and (9), as follows:
  • Convention or information centers or visitor information centers or both.
  • Convention registrants or delegates registration.
  • Advertising to attract tourists and convention delegates/registrants.
  • Promotion and improvement of the Arts.
  • Historical restoration and preservation projects.
  • Signage directing the public to sights and attractions frequently visited by hotel guests.

Reporting Deadlines

Local governments have a 50-day window to report their HOT rates and revenue amounts. The reporting period begins January 1 and all required information must be submitted no later than February 20 of each reporting year.

Posting Submitted Material

While the Comptroller’s office is not required to post submitted local HOT information on its website, this office nonetheless intends to make available all municipal and county data and direct websites provided to it during the reporting period. The data will be available shortly after the reporting period closes.

Frequently Asked Questions

Our local government does not impose a HOT. Do we need to submit a report or provide a link to the information on our website?

No. Only municipalities and counties that impose a HOT under Texas Tax Code Chapters 351 and 352, respectively, must provide the required tax information.

Our local government posts its annual budget and other conventional financial statements online. Will these documents satisfy the HOT reporting requirement?

No. Municipalities and counties subject to the reporting requirements of Texas Tax Code Sec. 351.009 or Sec. 352.009 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 local government’s website, [in accordance with the requirements of Texas Tax Code Sec. 351.009 and Sec. 352.009].

Our local government has allocated tax levies from revenue that was collected prior to the most recent fiscal year. Should we include these amounts when filing?

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 local government prior to the most recently completed fiscal year, even if an allocation of such revenue occurred during the most recently completed fiscal year.

Our local government levies a local HOT but does not currently have any hotels within its boundaries. Is the local government still required to submit a report if it did not collect any tax revenue?

Yes. If a municipality or county imposes a local HOT tax under Texas Tax Code Chapters 351 or 352, a report must still be submitted every year even if no HOT revenue was collected during the most recently completed fiscal year.

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For questions regarding the Local HOT reporting requirements, please email us or call 844-519-5676.