As used in this article, the following words and terms shall be defined as follows, unless the context requires otherwise:
Consideration.
The cost of a room in a hotel and does not include:
(1) 
The cost of any food served or personal services rendered to the occupant not related to cleaning and readying the room or space for occupancy; or
(2) 
Any tax assessed by any other governmental agency for occupancy of the room.
Hotel.
Any building in which members of the public obtain sleeping accommodation for consideration. The term includes a hotel, motel, tourist home, tourist house, tourist court, lodginghouse, inn, roominghouse 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 of the Texas Education Code, as amended, that is used by the institution for the purpose of providing sleeping accommodations for persons engaged in educational program or activity at the institution.
Occupancy.
The use or possession or the right to the use or possession of any room in a hotel.
Occupant.
Any person who, for a consideration, uses, possesses or has a right to use or possess any room in a hotel under any lease, concession, permit, right of access, license, contract or agreement.
Tax.
The hotel occupancy tax levied in this article pursuant to chapter 351 of the Texas Tax Code, as amended.
Tax collector.
The officer designated by the city to be the tax collector for the city under this article.
(Ordinance adopting Code)
(a) 
There is hereby levied a tax upon the occupant of any room:
(1) 
That is in a hotel within the city or its extraterritorial jurisdiction;
(2) 
That is ordinarily used for sleeping; and
(3) 
The cost of occupancy of which is two dollars ($2.00) or more each day.
(b) 
The tax is equal to seven percent (7%) of the consideration paid by the occupant of the room to the hotel.
(Ordinance adopting Code)
(a) 
All persons, organizations and entities specified in subchapter C of chapter 156 of the Texas Tax Code, as amended, are exempt from the payment of the tax imposed.
(b) 
Any person, organization or entity entitled to receive a refund of the tax paid under this article may file a refund claim as provided in section 156.154 of the Texas Tax Code, as amended.
(Ordinance adopting Code)
(a) 
On or before the 10th day of the month following each month in which a tax is earned, every person required by this article to collect the tax shall file a report with the tax collector showing:
(1) 
The consideration paid for all occupancies in the preceding month;
(2) 
The amount of the tax collected on the occupancies; and
(3) 
Any other information the tax collector may reasonably require.
(b) 
Every person required by this article to collect the tax shall pay the tax due on all occupancies in the preceding month to the tax collector at the time of filing the report required under subsection (a) above.
(c) 
The tax collector shall maintain a record that accurately identifies the receipt and expenditure of all revenue derived from the tax imposed by this article.
(Ordinance adopting Code)
(a) 
If a person liable for the payment of a tax under this article 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 tax due until the seller provides a receipt from the tax collector showing that the amount has been paid or a certificate stating that no tax 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 tax collector 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 tax collector shall issue a certificate or statement not later than 60 days after receiving the request.
(d) 
If the tax collector fails to issue the certificate or statement within the period provided by subsection (c) above, the purchaser is released from the obligation to withhold the purchase price or pay the amount due.
(Ordinance adopting Code)
The tax collector is authorized to make any rules and regulations necessary to effectively collect the tax. The tax collector shall, upon giving reasonable notice, have access to all books and records necessary to enable the tax collector to determine the correctness of any report filed as required by this article and the amount of taxes due under this article.
(Ordinance adopting Code)
(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 uses described in Texas Tax Code, section 351.101.
(b) 
Revenue from any hotel occupancy tax imposed and levied by this article may not be used for the general revenue purposes for general governmental operations of the city.
(c) 
Allocations of the hotel occupancy tax revenue by the city for the purposes set out by subsection (a) above must comply with the provisions of chapter 351 of the Texas Tax Code.
(Ordinance adopting Code)
(a) 
A person commits an offense if the person:
(1) 
Fails to collect the tax imposed by this article;
(2) 
Fails to file a report as required by this article;
(3) 
Fails to pay the tax collector the tax when payment is due;
(4) 
Files a false report; or
(5) 
Fails to comply with section 11.04.006(a) when purchasing a hotel.
(b) 
An offense committed under subsection (a) of this section is punishable by a fine in accordance with the general penalty in section 1.01.009 of this code.
(c) 
In addition to any criminal penalties imposed under subsection (b) of this section, a person failing to pay the tax to the tax collector by the 25th day of the month following the month in which the tax is required by this article to be collected shall pay an amount equal to fifteen (15) percent of the tax due as a penalty. Delinquent taxes draw interest at the rate of ten (10) percent per year beginning 30 days from the date the tax is due to the tax collector.
(d) 
In addition, the city is authorized to file legal proceedings against the hotel for noncompliance seeking any other remedies provided by state law.
(e) 
In addition to the amount of any tax owed, a person is liable to the city for all reasonable attorney’s fees incurred by the city in enforcing this article against the person and in collecting any tax owed by the person under this article.
(Ordinance adopting Code)
(a) 
Committee created.
There is hereby created a committee known as the “hotel occupancy tax advisory committee.” This committee may also be referred to as the “advisory committee,” “HOT committee” or “committee” in this division.
(b) 
Appointment/membership.
The committee [shall] consist of five (5) members who shall be appointed by the city council. The committee shall be composed of the following:
(1) 
One representative submitted by and representing the city chamber of commerce.
(2) 
One member representing the motel or hotel business of the city. This member must own, manage or otherwise have a verifiable financial interest in a hotel or motel operating within the municipal limits of the city.
(3) 
One representative of the city council. This representative may be a member of the city council and preference shall be given to a member of the city council desiring to serve on this committee.
(4) 
Two at-large members appointed by the city council. At-large members must reside within the municipal limits of the city.
(c) 
Ex-officio members.
The mayor and city manager shall serve as nonvoting ex-officio members of the committee. Ex-officio members shall be provided notice of all HOT committee meetings, may attend each meeting of the HOT committee and shall be entitled to access of all records of the HOT committee. Ex-officio members shall not count for purposes of establishing a quorum of the committee.
(d) 
Terms.
The members of the committee shall serve terms of two (2) years, except that two members shall have initial terms of one (1) year as determined by the drawing of lots. The terms shall begin on the first day of the fiscal year in which the member is appointed.
(e) 
Compensation.
The committee members shall serve without compensation.
(f) 
Vacancies.
Whenever a vacancy shall occur as a result of death, resignation, removal or they no longer meet the qualifications of being a member, the mayor, with the advice and consent of the city council, shall appoint a person to serve the unexpired term. The person appointed to fill any vacancy must meet the same qualifications of the member being replaced. If a councilmember appointed to the committee ceases to be a member of the city council, they shall continue to serve on the committee until their successor is appointed to serve by the city council.
(g) 
Removal.
All members of the committee serve at the will and pleasure of the city council and may be removed from the committee by the city council for any reason deemed in the best interest of the city as determined solely by the city council.
(Ordinance 676 adopted 8/30/18)
The committee is advisory only and shall provide advice to and recommendations to the city council regarding the following:
(1) 
Receive and review applications from businesses and individuals requesting funds for projects that are eligible for hotel occupancy tax funds;
(2) 
Confirm that the use of funds as requested complies with the applicable provisions of state law;
(3) 
Prioritize the requests for such funds and projects and advise the city council regarding the committee’s recommendations;
(4) 
Assist city with oversight of projects and agencies that receive funds and verify that such funds are being used in accordance with state law requirements. As a general rule, unless otherwise authorized by the city council, the expenditure of funds for eligible and approved projects shall be based on a reimbursement of authorized expenditures;
(5) 
Report to city council on a quarterly basis regarding the activities of the committee and the agencies and the projects that have received funds;
(6) 
Subject to any policy adopted by the city council, develop a planning calendar, procedure for evaluation and evaluation criteria to be used when recommending and prioritizing agencies and projects for hotel occupancy tax funds;
(7) 
Recommend advertising and marketing strategies for the city council to consider and assist the city with oversight of any contracts for advertising and marketing as approved by the city council;
(8) 
Maintain complete records relating to the expenditures of these funds to show their compliance with this chapter and applicable state law and provide access to such records to the city manager at any time upon request by the city manager or his designee;
(9) 
Any other function or duty as directed by the city council relating to the use of hotel occupancy funds.
(Ordinance 676 adopted 8/30/18)
(a) 
Committee officers.
The committee shall select a chairman, vice-chairman and secretary. The terms for each office shall be one year and shall be appointed at the committee’s first meeting following the beginning of the city’s fiscal year. The duties of each office shall be as follows:
(1) 
Chairman.
The chairman shall be responsible for calling all the meetings of the committee, shall preside at the committee meetings and shall present to the city council any reports as required of the committee.
(2) 
Vice-chairman.
The vice-chairman shall perform the functions of the chairman in the absence of the chairman.
(3) 
Secretary.
The secretary shall keep a record and minutes of each meeting of the committee and shall notify all members and ex-officio members of the committee of the time and place of each meeting. The secretary shall keep a record of the transactions of the committee and shall make available to the committee any reports, applications or other information necessary to further the activities of the committee.
(b) 
Bylaws and rules.
The committee may adopt as necessary bylaws and rules in order to govern their meetings and carry out the purposes of the committee so long as such bylaws and rules do not conflict with any applicable state law, this chapter, any ordinances of the city, or any other rule or policy established by the city council dealing directly with the HOT committee or the implementation of this chapter.
(c) 
Training.
All members of the committee shall complete hotel occupancy tax training within one hundred and twenty (120) days of the date of appointment to the committee. The city secretary will notify the members of the day, time, and location of available training.
(Ordinance 676 adopted 8/30/18)
(a) 
Meetings.
The committee shall meet as often as necessary to conduct the business of the committee but no less than once every quarter.
(b) 
Quorum.
Three members of the committee shall constitute a quorum for purposes of conducting the affairs of the committee.
(c) 
Voting.
An affirmative vote of three (3) members is required for the passage of any item before the committee.
(d) 
Attendance.
Any member who is absent for three consecutive regular meetings of the [committee] meetings, such member’s office is considered vacant unless the member is sick or has first obtained a leave of absence at a regular meeting by a majority of the committee.
(Ordinance 676 adopted 8/30/18)
The city council may adopt additional rules and policies that are applicable to the HOT committee and the implementation of the purposes outlined in this division so long as such additional rules and/or policies do not conflict with the provisions of this division or any other ordinance of the city or applicable state law. Any rule or policy adopted by the city council shall take precedence over any policy, rule or bylaw adopted by the committee in the event of a conflict.
(Ordinance 676 adopted 8/30/18)