[1]
State law reference—Authority of municipality to impose hotel occupancy tax, V.T.C.A., Tax Code, ch. 351.
(a) 
There is hereby levied a tax upon any person paying the cost of occupancy in any hotel where the cost of occupancy is at the rate of two dollars ($2.00) or more per day. Such tax shall be equal to seven percent (7%) of the total cost of occupancy paid.
(b) 
No tax shall be imposed under this Article upon a permanent resident.
(Ordinance CO23-18-04-26-E1 adopted 4/26/18)
Every person owning, operating, managing or controlling any hotel, and every person facilitating occupancy in a hotel by collecting and remitting to the owner, operator, manager, or controller of a hotel any portion of the cost of occupancy, shall collect the tax imposed in section 10.03.001 for the City.
(Ordinance CO23-18-04-26-E1 adopted 4/26/18)
(a) 
Every person required to collect the tax imposed by this Article shall pay all such tax collected in a quarterly period to the City Manager or their designee by the last day of the first calendar month following each quarterly period. Payment shall become delinquent on the first day of the second calendar month following each quarterly period.
(b) 
Every person required to collect the tax imposed by this Article shall, by the date specified for payment under subsection (a), file a report with the City Manager or their designee on the form prescribed by the City showing the cost of occupancy paid for all room occupancies in the preceding quarter, the amount of tax collected on the City’s behalf on such occupancies, and any other information as the City Manager may reasonably require, along with records establishing the validity of any exemption claimed. They shall also submit a copy of the monthly or quarterly report filed with the state comptroller in connection with the state hotel occupancy tax.
(Ordinance CO23-18-04-26-E1 adopted 4/26/18)
The City Manager shall have the power to make such rules and regulations as are necessary to effectively collect the tax levied in this Article and shall, upon reasonable notice, have access to books and records necessary to enable them to determine the correctness of any report filed as required by this Article and the amount of taxes due under the provisions of this Article.
(Ordinance CO23-18-04-26-E1 adopted 4/26/18)
(a) 
The revenue derived from any hotel occupancy tax imposed and levied by this Article may be used only to promote tourism and the convention and hotel industry, and that use is limited to the following:
(1) 
The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention or civic center facilities (as such is defined by Texas Tax Code, section 351.001, as amended);
(2) 
The furnishing of facilities, personnel, and materials of the registration of convention delegates or registrants;
(3) 
Advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the City or its vicinity;
(4) 
The encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recordings, and other arts related to the presentation, performance, execution, and exhibition of these major art forms;
(5) 
Historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums which are located in the City or its vicinity that would be frequented by tourists, convention delegates, or other visitors to the City;
(6) 
Expenses, including promotion expenses, directly related to a sporting event in which the majority of participants are tourists who substantially increase economic activity at hotels and motels within the City or its vicinity;
(7) 
A transportation system used to transport tourists from hotels in and near the City to:
(A) 
The commercial center of the City;
(B) 
A convention center in the City;
(C) 
Other hotels in or near the City; and
(D) 
Tourist attractions in or near the City, provided that the transportation system is owned and operated by the City or privately owned and operated but partially financed by the City;
(8) 
Signage directing the public to sights and attractions that are visited frequently by hotel guests in the City; and
(9) 
All other uses as may be hereafter authorized by law.
(b) 
Revenue derived from the hotel occupancy tax shall be expended only in a manner which directly enhances and promotes tourism and the convention and hotel industry as hereinbefore delineated. Such revenue shall not be used for the general revenue purposes or general governmental operations of the City which are not directly related to promoting the hotel and convention industry or tourism in the City.
(Ordinance CO23-18-04-26-E1 adopted 4/26/18)
If any person required by the provisions of this Article to collect the tax imposed in this Article, make reports as required and pay to the City Manager the tax imposed in this Article, shall fail to collect such tax, shall fail to file such report, or shall fail to pay such tax, such person shall be charged with a class C misdemeanor, and upon conviction shall be fined as provided for in section 1.01.009 of this Code for each day that a violation exists, and a separate offense shall be deemed committed upon each day during or on which a violation occurs or continues.
(Ordinance CO23-18-04-26-E1 adopted 4/26/18)
(a) 
Any person failing to file a report as required in this Article or failing to pay to the City Manager or their designee the tax as imposed in this Article when such report or payment is due, shall forfeit five percent (5%) of the amount due as a penalty. In the event any delinquent tax or report is not paid or filed within thirty (30) days of the due date, an additional five percent (5%) of such tax shall be due as a penalty. The penalty shall never be less than one dollar ($1.00).
(b) 
Delinquent taxes shall draw interest at the rate of twelve percent (12%) per annum.
(c) 
In addition to the penalties provided herein, the City may pursue other remedies and penalties as provided by Texas Tax Code section 351.004, as amended, and other state law.
(Ordinance CO23-18-04-26-E1 adopted 4/26/18)
Cost of occupancy.
All amounts paid by a person as consideration for the use or possession of, or the right to use or possession of, a room, bed, space, or any other facility used for sleeping in a hotel under any lease, concession, permit, right of access, license, contract, or agreement. The term shall include the cost of all conveniences customarily provided by the hotel in connection with sleeping accommodations and the cost of any service fees paid to any person to secure the right to use or possession of the sleeping accommodations. The cost of occupancy shall not include the cost of food served by the hotel, nor 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.
Hotel.
A building or any other facility in which members of the public obtain sleeping accommodations for consideration. The term includes, but is not limited to, a hotel, motel, tourist home, tourist house, lodging house, inn, roominghouse, bed and breakfast, trailer house, trailer motel, and short-term rental. The term does not include hospitals, sanitariums, nursing homes, university or college dormitories, or oilfield portable units, as defined by Texas Tax Code section 152.001, as amended.
Permanent resident.
A person who has the right to use or possess a room, bed, space, or any other sleeping facility in a hotel for at least 30 consecutive days, so long as there is no interruption of payment for the period.
Person.
Shall have the meaning ascribed by section 1.01.004 of this Code, as amended.
Quarter or quarterly period.
Quarters of the calendar year, the first quarter being January 1–March 31, the second quarter being April 1–June 30, the third quarter being July 1–September 30, and the fourth quarter being October 1–December 31.
Short-term rental.
The rental of all or part of a residential property to a person who is not a permanent resident.
Tax.
The hotel occupancy tax levied in this Article pursuant to chapter 351 of the Texas Tax Code, as amended.
(Ordinance CO23-18-04-26-E1 adopted 4/26/18)