The purpose of this article is to provide money to promote tourism and the convention and hotel industry, and that use is limited to those provided in section 351.101, V.T.C.A., Tax Code.
(1972 Code, sec. 23-1/4-28; Ordinance 265 adopted 3/5/1974; 1995 Code, sec. 35.15; Ordinance adopting Code)
For the purpose of this article, the following definitions shall apply, unless the context clearly indicates or requires a different meaning:
Consideration.
The cost of the room in such hotel only if the room is one ordinarily used for sleeping, and shall not include the cost of any food served or personal services rendered to the occupant of such room not related to the cleaning and readying of such room for occupancy.
Director of finance.
The director of finance of the city.
Hotel.
Any building or buildings in which the public may, for a consideration, obtain sleeping accommodations. The term shall include hotels, motels, tourist homes, houses, or courts, lodging houses, inns, rooming houses, or other buildings where rooms are furnished for a consideration, but “hotel” shall not be defined so as to include hospitals, sanitariums, or nursing homes.
Occupancy.
The use or possession, or the right to the use or possession, of any room in a hotel if the room is one ordinarily used for sleeping and if the occupant’s use, possession, or right to use or possession extends for a period of less than 30 days.
Occupant.
Anyone who, for a consideration, uses, possesses, or has a right to use or possess any room in a hotel if the room is one ordinarily used for sleeping.
Person.
Any individual, company, corporation or association owning, operating, managing or controlling any hotel.
Quarterly period.
The regular calendar quarters of the year, the first quarter being composed of the months of January, February, and March; the second quarter being the months of April, May, and June; the third quarter being the months of July, August, and September; and the fourth quarter being the months of October, November, and December.
(1972 Code, sec. 23-1/4-27; Ordinance 265 adopted 3/5/1974; 1995 Code, sec. 35.16)
(a) 
There is hereby levied a tax upon the occupancy of any sleeping room furnished by any hotel or motel where the cost of occupancy is at the rate of $2.00 or more per day, such tax to be equal to 7% of the consideration paid by the occupant of such room to such hotel or motel.
(b) 
No tax shall be imposed hereunder upon a corporation or association organized and operated exclusively for religious, charitable or educational purposes, in which no part of the net earnings inures to the benefit of any private shareholder or individual.
(c) 
A person or entity exempted from the tax imposed by the Texas Tax Code, sections 156.101 through 156.103, is exempt from the tax authorized by this article.
(d) 
There is hereby levied a tax upon the occupancy of any sleeping room furnished by any hotel or motel located in the extraterritorial jurisdiction of the city as authorized by Texas Tax Code section 351.0025 of subchapter A, chapter 351, where the cost of occupancy is at the rate of $2.00 or more per day, such tax to be equal to 7% of the consideration paid by the occupant of such room to such hotel or motel.
(e) 
The right to use or possess a room or space in a hotel is exempt from taxation under this article if the person required to collect the tax receives in good faith from a guest a properly completed local tax exemption certificate stating that the guest is qualified for an exemption under section 156.102 or section 156.103 [of the Texas Tax Code]. A local tax exemption certificate must be supported by the documentation required under rules adopted by the city finance office. The city finance office shall maintain a list of entities that have been provided a local tax exemption certificate from the state hotel occupancy tax under section 156.102.
(1972 Code, sec. 23-1/4-26; Ordinance 265 adopted 3/5/1974; Ordinance 383 adopted 8/7/1990; Ordinance 2890 adopted 7/21/1992; Ordinance 3004 adopted 3/1/1994; 1995 Code, sec. 35.17; Ordinance 4257 adopted 8/3/2010)
(a) 
The city attorney or other attorney acting for the city may bring suit against a person who is required to collect the tax imposed by this article and pay the collections over to the city and who has failed to file a tax report or pay the tax when due, to collect the tax not paid or to enjoin the person from operating a hotel in the city until the tax is paid or the report filed, as applicable, as provided by the court’s order.
(b) 
The remedy provided by this section is in addition to other available remedies.
(c) 
If a person who is liable for the payment of a tax under this article is the owner of a hotel and sells the hotel, the successor to the seller or the seller’s assignee shall withhold an amount from the purchase price sufficient to pay the amount due until the seller provides a receipt by a person designated by the city to provide a receipt showing that the amount has been paid or a certificate that no tax is due.
(d) 
The purchaser of a hotel who fails to withhold an amount from the purchase price required by this section is liable for the amount required to be withheld to the extent of the value of the purchase price.
(e) 
The purchaser of a hotel may request that the person designated by the city provide a receipt under subsection (a) and 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 person designated by the city shall issue the certificate or a statement not later than the seventh day after the date that the person receives the request. Every request for a certificate or statement shall be made in writing. The only proof of delivery and date that will be acceptable by the city is a file-stamped copy of the request by the city finance office.
(f) 
If the person designated by the city to provide a receipt under subsection (a) fails to issue the certificate or statement within a period provided by subsection (c), the purchaser is released from the obligation to withhold the purchase price or pay the amount due.
(1972 Code, sec. 23-1/4-29; Ordinance 265 adopted 3/5/1974; Ordinance 3004 adopted 3/1/1994; 1995 Code, sec. 35.18; Ordinance 4257 adopted 8/3/2010)
On the last day of the month following each quarterly period, every person required in section 11.04.004 hereof to collect the tax imposed herein shall file a report with the director of finance of the city showing the consideration paid for all room occupancies in the preceding quarter, the amount of the tax collected on such occupancies, and any other information as the director of finance may reasonably require. Such person shall pay the tax due on such occupancies at the time of filing such report. The city will receive 3% of all proceeds collected under this article for collection expenses incurred by the director of finance’s office.
(1972 Code, sec. 23-1/4-30; Ordinance 265 adopted 3/5/1974; 1995 Code, sec. 35.19)
The director of finance shall have the power to make such rules and regulations as are necessary to effectively collect the tax levied herein and shall, upon reasonable notice, have access to books and records necessary to enable him 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.
(1972 Code, sec. 23-1/4-31; Ordinance 265 adopted 3/5/1974; 1995 Code, sec. 35.20)
The city council shall each year approve an amount in the annual budget from monies derived from the collection of taxes under this article to be used according to the purposes of this article. All monies derived from this tax shall be placed in a designated fund to be used as specified in section 11.04.001 and budgeted upon approval of the city council.
(1972 Code, sec. 23-1/4-32; Ordinance 265 adopted 3/5/1974; 1995 Code, sec. 35.21)
If any person shall fail to collect the tax imposed herein or shall fail to file a report as required herein, or shall fail to pay the director of accounting the tax as imposed herein, when the report or payment is due, or shall file a false report, such person shall be guilty of a class C criminal misdemeanor and shall, upon conviction thereof, be punished by a fine not to exceed $500.00 for each violation. In addition, such person who fails to collect or remit the tax within the time required or violates the reporting provisions imposed by this article shall, in addition to the amount of any tax owed under this article, be liable to the city for the city’s reasonable attorney fees and a penalty equal to 15% of the total amount of the tax owed.
(1972 Code, sec. 23-1/4-33; Ordinance 265 adopted 3/5/1974; Ordinance 3004 adopted 3/1/1994; 1995 Code, sec. 35.99; Ordinance 4257 adopted 8/3/2010)