TAX CODE
CHAPTER 156. HOTEL OCCUPANCY TAX
SUBCHAPTER A. DEFINITIONS
§ 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, § 1, eff. Jan. 1, 1982.
Amended by Acts 1993, 73rd Leg., ch. 486, § 5.01, eff. Oct. 1,
1994; Acts 1995, 74th Leg., ch. 454, § 1, eff. Sept. 1, 1995;
Acts 1995, 74th Leg., ch. 1000, § 56, eff. Oct. 1, 1995.
SUBCHAPTER B. TAX
§ 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, § 1, eff. Jan. 1, 1982.
Amended by Acts 2003, 78th Leg., ch. 209, § 28, eff. Oct. 1,
2003.
§ 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, § 1, eff. Jan. 1, 1982.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 5, § 1,
eff. Oct. 2, 1984; Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 5,
§ 1.
§ 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, § 1, eff. Jan. 1, 1982.
SUBCHAPTER C. EXCEPTIONS TO TAX
§ 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, § 1, eff. Jan. 1, 1982.
Amended by Acts 1991, 72nd Leg., ch. 328, § 4, eff. Aug. 26,
1991.
§ 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, § 1, eff. Jan. 1, 1982.
Amended by Acts 1999, 76th Leg., ch. 1359, § 2, eff. Sept. 1,
1999; Acts 1999, 76th Leg., ch. 1467, § 2.48, eff. Oct. 1, 1999;
Acts 2001, 77th Leg., ch. 1420, § 18.011, eff. Sept. 1, 2001;
Acts 2003, 78th Leg., ch. 209, § 29, eff. Oct. 1, 2003.
§ 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, § 1, eff. Sept. 1, 1989.
Amended by Acts 1995, 74th Leg., ch. 454, § 2, eff. Sept. 1,
1995; Acts 1999, 76th Leg., ch. 1467, § 2.49, eff. Oct. 1, 1999.
§ 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, § 30, eff. Oct. 1, 2003.
SUBCHAPTER D. REPORTS AND PAYMENTS
§ 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, § 1, eff. Jan. 1, 1982.
Amended by Acts 1993, 73rd Leg., ch. 486, § 5.02, eff. Oct. 1,
1994.
§ 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, § 1, eff. Jan. 1, 1982.
§ 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, § 11, eff. Jan.
1, 1982. Amended by Acts 1993, 73rd Leg., ch. 486, § 5.03, eff.
Oct. 1, 1994.
§ 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, § 3, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 1158, § 91, eff. Sept. 1,
2001.
SUBCHAPTER E. ENFORCEMENT
§ 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, § 1, eff. Jan. 1, 1982.
§ 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, § 1, eff. Jan. 1, 1982.
§ 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, § 1, eff. Jan. 1, 1982.
§ 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, § 1, eff. May 3,
1983.
SUBCHAPTER F. DISPOSITION OF REVENUE
§ 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, § 1, eff. Jan. 1, 1982.
Amended by Acts 1985, 69th Leg., ch. 651, § 8, eff. Aug. 26,
1985; Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 5, § 2; Acts
1993, 73rd Leg., ch. 986, § 34, eff. Sept. 1, 1993.
§ 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, § 4, eff. Sept. 1, 1995.
§ 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 in an eligible general-law
coastal municipality; and
(2) issue to the eligible general-law coastal
municipality a warrant drawn on the general revenue fund in the
amount computed under Subdivision (1).
(b) An eligible general-law coastal municipality may use
money received under this section only to clean and maintain public
beaches in that municipality.
(c) In this section:
(1) "Eligible general-law coastal municipality" means
a general-law municipality:
(A) that has a population of less than 5,000;
(B) that borders on the Gulf of Mexico; and
(C) the boundaries of which are within 30 miles
of the United Mexican States.
(2) "Clean and maintain" has the meaning assigned by
Section 61.063, Natural Resources Code.
Added by Acts 1999, 76th Leg., ch. 1359, § 1, eff. Sept. 1, 1999.
