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.

Throughout the years, the Texas Legislature has passed laws that increased local government transparency while also allowing the public to better understand the state’s patchwork of municipal and county HOTs. During the 88th Legislative Session, House Bill 3727 and Senate Bill 1420 were passed to require municipalities and counties to report the amount and percentage of HOT revenue allocated by the local government.

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 by entering all required information into the online reporting form.

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.
• The dollar amount and percentage of revenue collected from HOT and allocated the preceding fiscal year to each use described by Texas Tax Code Chapters 351 and 352.
• The total amount of HOT revenue collected in any preceding fiscal year that has not yet been spent and the amount of the unexpended revenue, if any, that remains in the municipality’s or county’s possession in the fiscal year in which the report is due.
• If applicable, the dollar amount of revenue collected during the preceding fiscal year from HOT imposed under Subchapter H, Local Government Code Chapter 334.

Reporting Deadlines

Local governments have a three-month window to report their HOT rates and revenue amounts. The reporting period begins Jan. 1, and all required information must be submitted no later than March 1 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 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 in the format specified by the Comptroller [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?

With the passage of House Bill 3727 and Senate Bill 1420 in the 88th Legislative Session, cities and counties are required to report the unspent revenue from any preceding fiscal year and the amount of unexpended revenue, if any, that remains in the municipality’s or county’s possession in the fiscal year in which the report is due.

However, the reporting does not include any allocations of revenue from prior fiscal years.

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.

Can a municipality or county use a portion of the revenue for costs incurred in making and submitting the HOT report?

Yes. Municipalities and counties are authorized to use up to $1,000 if the municipality or county has a population of less than 10,000 or $2,500 if the municipality or county has a population of 10,000 or more. [Texas Tax Code Secs. 351.009(d) and 352.009(d)]

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