CHAPTER 156. HOTEL OCCUPANCY TAX - Texas Statutes

TAX CODE

TITLE 2. STATE TAXATION

SUBTITLE E. SALES, EXCISE, AND USE TAXES

CHAPTER 156. HOTEL OCCUPANCY TAX

SUBCHAPTER A. DEFINITIONS

Sec. 156.001. DEFINITION. In this chapter, "hotel" means a

building in which members of the public obtain sleeping

accommodations for consideration. The term includes a hotel,

motel, tourist home, tourist house, tourist court, lodging house,

inn, rooming house, or bed and breakfast. The term does not

include:

(1) a hospital, sanitarium, or nursing home; or

(2) a dormitory or other housing facility owned or leased and

operated by an institution of higher education or a private or

independent institution of higher education as those terms are

defined by Section 61.003, Education Code, used by the

institution for the purpose of providing sleeping accommodations

for persons engaged in an educational program or activity at the

institution.

Acts 1981, 67th Leg., p. 1686, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1993, 73rd Leg., ch. 486, Sec. 5.01, eff.

Oct. 1, 1994; Acts 1995, 74th Leg., ch. 454, Sec. 1, eff. Sept.

1, 1995; Acts 1995, 74th Leg., ch. 1000, Sec. 56, eff. Oct. 1,

1995.

SUBCHAPTER B. TAX

Sec. 156.051. TAX IMPOSED. (a) A tax is imposed on a person

who, under a lease, concession, permit, right of access, license,

contract, or agreement, pays for the use or possession or for the

right to the use or possession of a room or space in a hotel

costing $15 or more each day.

(b) The price of a room in a hotel does not include the cost of

food served by the hotel and the cost of personal services

performed by the hotel for the person except for those services

related to cleaning and readying the room for use or possession.

Acts 1981, 67th Leg., p. 1686, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 2003, 78th Leg., ch. 209, Sec. 28, eff.

Oct. 1, 2003.

Sec. 156.052. RATE OF TAX. The rate of the tax imposed by this

chapter is six percent of the price paid for a room in a hotel.

Acts 1981, 67th Leg., p. 1686, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 5,

Sec. 1, eff. Oct. 2, 1984; Acts 1987, 70th Leg., 2nd C.S., ch. 5,

art. 5, Sec. 1.

Sec. 156.053. COLLECTION OF TAX. A person owning, operating,

managing, or controlling a hotel shall collect for the state the

tax that is imposed by this chapter and that is calculated on the

amount paid for a room in the hotel.

Acts 1981, 67th Leg., p. 1686, ch. 389, Sec. 1, eff. Jan. 1,

1982.

SUBCHAPTER C. EXCEPTIONS TO TAX

Sec. 156.101. EXCEPTION--PERMANENT RESIDENT. This chapter does

not impose a tax on a person who has the right to use or possess

a room in a hotel for at least 30 consecutive days, so long as

there is no interruption of payment for the period.

Acts 1981, 67th Leg., p. 1686, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1991, 72nd Leg., ch. 328, Sec. 4, eff. Aug.

26, 1991.

Sec. 156.102. EXCEPTION--RELIGIOUS, CHARITABLE, OR EDUCATIONAL

ORGANIZATION. (a) This chapter does not impose a tax on a

corporation or association that is organized and operated

exclusively for a religious, charitable, or educational purpose

if no part of the net earnings of the corporation or association

inure to the benefit of a private shareholder or individual.

(b) For purposes of this section:

(1) a corporation or association that is organized and operated

exclusively for the cleaning of beaches and that has no part of

its net earnings inure to the benefit of a private shareholder or

individual is organized and operated exclusively for a charitable

purpose; and

(2) a public or private institution of higher education is

organized and operated exclusively for an educational purpose

only if the institution is defined as a Texas institution of

higher education or as a Texas private or independent institution

of higher education under any subdivision of Section 61.003,

Education Code.

Acts 1981, 67th Leg., p. 1686, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1999, 76th Leg., ch. 1359, Sec. 2, eff.

Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1467, Sec. 2.48, eff.

Oct. 1, 1999; Acts 2001, 77th Leg., ch. 1420, Sec. 18.011, eff.

Sept. 1, 2001; Acts 2003, 78th Leg., ch. 209, Sec. 29, eff. Oct.

1, 2003.

Sec. 156.103. EXCEPTION--STATE AND FEDERAL GOVERNMENT. (a)

This chapter does not impose a tax on:

(1) the United States;

(2) a governmental entity of the United States; or

(3) an officer or employee of a governmental entity of the

United States when traveling on or otherwise engaged in the

course of official duties for the governmental entity.

(b) This state, or an agency, institution, board, or commission

of this state other than an institution of higher education shall

pay the tax imposed by this chapter and is entitled to a refund

of the amount of tax paid in accordance with Section 156.154.

(c) A state officer or employee of a state governmental entity

described by Subsection (b) who is entitled to reimbursement for

the cost of lodging and for whom a special provision or exception

to the general rate of reimbursement under the General

Appropriations Act is not applicable shall pay the tax imposed by

this chapter. The state governmental entity with whom the person

is associated is entitled under Section 156.154 to a refund of

the tax paid.

(d) A state officer or employee of a state governmental entity

described by Subsection (b) for whom a special provision or

exception to the general rate of reimbursement under the General

Appropriations Act applies and who is provided with photo

identification verifying the identity and exempt status of the

person is not required to pay the tax and is not entitled to a

refund. The photo identification of a state officer or employee

described by this section may be modified for the purposes of

this section.

(e) In this section, "institution of higher education" has the

meaning assigned by Section 61.003, Education Code.

Added by Acts 1989, 71st Leg., ch. 504, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 1995, 74th Leg., ch. 454, Sec. 2, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1467, Sec. 2.49, eff.

Oct. 1, 1999.

Sec. 156.104. EXEMPTION CERTIFICATE. (a) The right to use or

possess a room or space in a hotel is exempt from taxation under

this chapter if the person required to collect the tax receives,

in good faith from a guest, a properly completed exemption

certificate stating that the guest is qualified for an exemption

under Section 156.102 or 156.103. An exemption certificate must

be supported by the documentation required under rules adopted by

the comptroller.

(b) The comptroller shall produce and maintain a list of

entities that have been provided a letter of exemption from the

state hotel occupancy tax under Section 156.102. The comptroller

shall make the list available on the comptroller's Internet

website.

Added by Acts 2003, 78th Leg., ch. 209, Sec. 30, eff. Oct. 1,

2003.

SUBCHAPTER D. REPORTS AND PAYMENTS

Sec. 156.151. REPORT AND PAYMENT. (a) A person required to

collect the tax imposed by this chapter shall pay the comptroller

the tax collected during the preceding reporting period and at

the same time shall file with the comptroller a report stating:

(1) the total amount of the payments made for rooms at the

person's hotel during the preceding reporting period;

(2) the amount of the tax collected by the person during the

preceding reporting period; and

(3) other information that the comptroller requires to be in the

report.

(b) Except as provided by Subsection (c), each calendar month is

a reporting period and the taxes imposed by and collected under

this chapter are due and payable to the comptroller on or before

the 20th day of the month following the end of each calendar

month.

(c) If a taxpayer owes less than $500 for a calendar month or

$1,500 for a calendar quarter, the taxpayer qualifies as a

quarterly filer having a reporting period of a calendar quarter

and the taxes are due and payable on the 20th day after the end

of the calendar quarter.

Acts 1981, 67th Leg., p. 1687, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1993, 73rd Leg., ch. 486, Sec. 5.02, eff.

Oct. 1, 1994.

Sec. 156.152. ACCESS TO BOOKS AND RECORDS. After the

comptroller gives reasonable notice to a person that the

comptroller intends to inspect the books or records of the

person, the comptroller has access to the person's books or

records necessary for the comptroller to determine the

correctness of a report filed under this chapter or the amount of

taxes due under this chapter.

Acts 1981, 67th Leg., p. 1687, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 156.153. REIMBURSEMENT FOR TAX COLLECTION. The person

required to file a report under this chapter may deduct and

withhold from the taxes otherwise due to the state on the monthly

or quarterly return, as reimbursement for the cost of collecting

the tax, one percent of the amount of the tax due as shown on the

report. If taxes due under this chapter are not paid to the state

within the time required or if the person required to file a

report fails to file the report when due, the person forfeits the

claim to reimbursement that could have been taken if the tax had

been paid or the report filed when due.

Added by Acts 1981, 67th Leg., p. 2779, ch. 752, Sec. 11, eff.

Jan. 1, 1982. Amended by Acts 1993, 73rd Leg., ch. 486, Sec.

5.03, eff. Oct. 1, 1994.

Sec. 156.154. REFUND. (a) A governmental entity that is

entitled under Section 156.103 to a refund of taxes paid under

this chapter must file a refund claim with the comptroller.

(b) The claim must be filed on a form provided by the

comptroller and contain the information required by the

comptroller.

(c) A claim for a refund may be filed only for each fiscal year

quarter for all reimbursements accrued during that quarter.

Added by Acts 1995, 74th Leg., ch. 454, Sec. 3, eff. Sept. 1,

1995. Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 91, eff.

Sept. 1, 2001.

SUBCHAPTER E. ENFORCEMENT

Sec. 156.201. INTEREST ON DELINQUENT TAXES. A tax imposed by

this chapter that is not paid to the comptroller when it is due

draws interest as provided by Section 111.060 of this code.

Acts 1981, 67th Leg., p. 1687, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 156.202. PENALTY. (a) If the person who is required to

pay to the comptroller the tax imposed by this chapter fails to

file a report or does not pay the tax when it is due, the person

shall forfeit to the state a penalty of five percent of the

amount of tax due.

(b) If the person who is required to pay the tax to the

comptroller does not pay the tax within 30 days after it is due,

the person shall forfeit to the state a penalty of an additional

five percent of the amount of tax due.

(c) The minimum penalty under this section is $1.

Acts 1981, 67th Leg., p. 1687, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 156.203. CRIMINAL PENALTY. (a) A person commits an

offense if the person fails to file a report with the

comptroller, collect a tax for the state, or pay a tax to the

comptroller as the person is required to do by this chapter.

(b) An offense under this section is a misdemeanor punishable by

a fine of not less than $100 or more than $1,000.

Acts 1981, 67th Leg., p. 1687, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 156.204. TAX COLLECTION ON TERMINATION OF BUSINESS. (a)

If a person who is liable for the payment of an amount under

Section 156.151 of this code is the owner of the hotel and sells

the hotel, the successor to the seller or the seller's assignee

shall withhold an amount of the purchase price sufficient to pay

the amount due until the seller provides a receipt from the state

comptroller showing that the amount has been paid or a

certificate stating that no amount is due.

(b) The purchaser of a hotel who fails to withhold an amount of

the purchase price as required by this section is liable for the

amount required to be withheld to the extent of the value of the

purchase price.

(c) The purchaser of a hotel may request that the comptroller

issue a certificate stating that no tax is due or issue a

statement of the amount required to be paid before a certificate

may be issued. The comptroller shall issue the certificate or

statement within 60 days after receiving the request or within 60

days after the day on which the records of the former owner of

the hotel are made available for audit, whichever period expires

later, but in either event the comptroller shall issue the

certificate or statement within 90 days after the date of

receiving the request.

(d) If the comptroller fails to mail the certificate or

statement within the applicable period provided by Subsection (c)

of this section, the purchaser is released from the obligation to

withhold the purchase price or pay the amount due.

(e) The period of limitation during which the comptroller may

assess tax against the purchaser under this section is four years

from the date when the former owner of the hotel sells the hotel

or when a determination is made against the former owner,

whichever event occurs later. At any time within three years

after a deficiency determination against the purchaser has become

due and payable the comptroller may bring an action in a district

court of Travis County or a court of any other state of the

United States in the name of the people of Texas to collect the

delinquent amounts together with penalties and interest.

Added by Acts 1983, 68th Leg., p. 302, ch. 65, Sec. 1, eff. May

3, 1983.

SUBCHAPTER F. DISPOSITION OF REVENUE

Sec. 156.251. REVENUE DEPOSITED IN GENERAL REVENUE FUND. (a)

The revenue from the tax imposed by this chapter shall be

deposited in the state treasury to the credit of the general

revenue fund.

(b), (c) Expired.

(d) An amount equal to the amount of revenue derived from the

collection of taxes imposed by this chapter at a rate of one-half

of one percent shall be allocated in the general revenue fund to

be used for media advertising and other marketing activities of

the Tourism Division of the Texas Department of Commerce. Section

403.094(h), Government Code, does not apply to funds described in

this section. This subsection takes effect October 1, 1994.

Acts 1981, 67th Leg., p. 1688, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1985, 69th Leg., ch. 651, Sec. 8, eff. Aug.

26, 1985; Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 5, Sec. 2;

Acts 1993, 73rd Leg., ch. 986, Sec. 34, eff. Sept. 1, 1993.

Sec. 156.2511. ALLOCATION OF CERTAIN REVENUE. (a) Not later

than the last day of the month following a calendar quarter, the

comptroller shall:

(1) compute the amount of revenue derived from the collection of

taxes imposed under this chapter at a rate of two percent and

received from hotels located in an eligible coastal municipality

that has created a park board of trustees to administer public

beaches under Chapter 306, Local Government Code; and

(2) issue to the eligible coastal municipality a warrant drawn

on the general revenue fund in the amount computed under

Subdivision (1).

(b) An eligible coastal municipality may use money received

under this section only to clean and maintain public beaches in

that municipality.

(c) Section 403.094(h), Government Code, does not apply to funds

described by Subsection (a).

(d) In this section:

(1) "Eligible coastal municipality" has the meaning assigned by

Section 351.001.

(2) "Clean and maintain" has the meaning assigned by Section

61.063, Natural Resources Code.

Added by Acts 1995, 74th Leg., ch. 454, Sec. 4, eff. Sept. 1,

1995.

Sec. 156.2512. ALLOCATION OF REVENUE TO CERTAIN MUNICIPALITIES.

(a) Not later than the last day of the month following a

calendar quarter, the comptroller shall:

(1) compute the amount of revenue derived from the collection of

taxes imposed under this chapter at a rate of one percent and

received from hotels located on barrier islands in an eligible

barrier island coastal municipality; and

(2) issue to the eligible barrier island coastal municipality a

warrant drawn on the general revenue fund in the amount computed

under Subdivision (1).

(b) An eligible barrier island coastal municipality may use

money received under this section only:

(1) to clean and maintain public beaches in that municipality;

and

(2) for an erosion response project in that municipality.

(c) In this section:

(1) "Eligible barrier island coastal municipality" means a

municipality:

(A) that borders on the Gulf of Mexico;

(B) that is located wholly or partly on a barrier island; and

(C) the boundaries of which are within 30 miles of the United

Mexican States or include:

(i) a portion of a national seashore; or

(ii) a national estuarine research reserve.

(2) "Clean and maintain" has the meaning assigned by Section

61.063, Natural Resources Code.

(3) "Erosion response project" has the meaning assigned by

Section 33.601, Natural Resources Code.

Added by Acts 1999, 76th Leg., ch. 1359, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1192, Sec. 1, eff. June 15, 2007.

Acts 2009, 81st Leg., R.S., Ch.

667, Sec. 1, eff. July 1, 2009.