The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Consideration.
The cost of a room, sleeping space, bed or dormitory space or the facility in a hotel, and shall not include the cost of food served or personal services rendered to the occupant not related to cleaning and readying such room or space for occupancy, nor any tax assessed for occupancy thereof by any other governmental agency.
Finance director.
The finance director for the town or his or her designee.
Hotel.
Any building in which members of the public obtain sleeping accommodations for consideration. Such term includes a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, rooming house or bed and breakfast. Such 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 such terms are defined in V.T.C.A., Education Code section 61.003, used by the institution for the purpose of providing sleeping accommodations for persons engaged in an education program or activity at the institution.
Occupancy.
The use or possession, or right to the use or possession, of any room, space or sleeping facility in a hotel, if the room is one ordinarily used for sleeping and if the occupant’s use, possession or right to use or possess extends for less than thirty (30) days.
Occupant.
Any person who, for a consideration, uses or possesses, or has a right to use or possess, any room, space, or sleeping facility in a hotel, under any lease, concession, permit, right of access, license, contract or agreement, other than a permanent resident as herein defined.
Permanent resident.
A person who has the right to use or possess a room in a hotel for at least 30 consecutive days during the calendar year or preceding year, as long as there is no interruption of payment for such period.
Person.
Any individual, company, corporation or association owning, operating, managing or controlling any hotel.
Quarterly period.
A regular quarterly period corresponding to the period which tax reports are filed with the state comptroller.
(Ordinance 18-02, ex. A, sec. 11.401, adopted 2/12/18)
There is hereby levied in the town a tax of seven percent (7%) of the price paid for a room at a hotel which costs $2.00 or more each day and is ordinarily used for sleeping. The tax shall apply to every person who, under a lease, concession, permit, right of access, license, contract or agreement, pays for the right to use or possess a room that is in a hotel in accordance with the terms of V.T.C.A., Tax Code section 351.001 et seq. 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 those services related to the cleaning and readying of the room for possession.
(Ordinance 18-02, ex. A, sec. 11.402, adopted 2/12/18)
(a) 
No tax shall be imposed under this division upon:
(1) 
A permanent resident so long as there is no interruption of payment for the period of his right to use or possess a room.
(2) 
A United States governmental entity described in V.T.C.A., Tax Code section 156.103(a).
(3) 
A person who is described by V.T.C.A., Tax Code section 156.103(d).
(b) 
A state governmental entity described in V.T.C.A., Tax Code section 156.103(b) shall pay the tax imposed by this division, but is entitled to a refund of the tax paid.
(c) 
A person who is described in V.T.C.A., Tax Code section 156.103(c) shall pay the tax imposed by this division, but the state governmental entity with whom the person is associated is entitled to a refund of the tax paid.
(Ordinance 18-02, ex. A, sec. 11.403, adopted 2/12/18)
(a) 
To receive a refund of the tax paid under this division, the governmental entity entitled to the refund must file a refund claim with the finance director on a form provided by the finance director, containing the information required by the town. The comptroller, by rule, shall prescribe the form that must be used and the information that must be provided.
(b) 
A governmental entity may file a refund claim with the town under this division only for each calendar quarter for all reimbursements accrued during the quarter.
(Ordinance 18-02, ex. A, sec. 11.404, adopted 2/12/18)
(a) 
Every person owning, operating, managing or controlling any hotel or other facility, as defined hereinabove, within the town shall collect the tax levied by this division for the town.
(b) 
The hotel operator shall be entitled to one percent (1%) of the hotel occupancy tax revenues collected as reimbursement for the operator’s administrative costs for collecting the tax. However, as provided in section 2.11.128, this reimbursement may be forfeited at the discretion of the town if the hotel operator fails to timely pay over the tax or timely file a report as required by the town or files a false report with the town.
(Ordinance 18-02, ex. A, sec. 11.405, adopted 2/12/18)
(a) 
On the twentieth of the month following each quarterly reporting period, every person required to collect the tax imposed in this division shall file a report with the finance director of the town showing the consideration paid for all rooms or sleeping space occupancies in the preceding quarter, the amount of tax collected on such occupancies and any other information the town may reasonably require. Such person shall pay the tax due on such occupancies at the time of filing such report. Additionally, such person shall file a copy of the report filed with the state comptroller in connection with the state hotel occupancy tax.
(b) 
Reports and payment must be postmarked by the twentieth or it will be considered late and subject to penalties (section 2.11.128). The finance director is hereby authorized and directed to do all such things necessary or convenient to carry out the terms of this division. The finance director shall have the authority to request and receive within a reasonable time documentation of information contained in the report to the town by the hotel.
(c) 
A hotel operator may request to the finance director to report quarterly if the tax owed is less than $500.00 for a calendar month or $1,500.00 for a calendar quarter. The tax will be due the twentieth day of the following month after the reporting quarter (January–March, April–June, July–September, and October–December).
(Ordinance 18-02, ex. A, sec. 11.406, adopted 2/12/18; Ordinance adopting 2021 Code)
The finance director shall adopt such procedures, rules and regulations as are reasonably necessary to effectively collect the tax levied herein and shall, upon request of any person owning, operating, managing or controlling any hotel or other facility as hereinabove defined, furnish a copy of such procedures, rules and regulations for the guidance of such person and to facilitate the collection of such tax as such collection is required herein. Such procedures, rules and regulations shall be in writing. The finance director shall have access to books and records of all persons who are required to collect such tax by section 2.11.125 hereinabove during reasonable business hours as shall be necessary to enable the finance director to determine the correctness of any report filed as required by section 2.11.126, and to determine the correctness of the amount due under the provisions of this division, or to determine whether or not a report should have been filed and the amount, if necessary, of taxes due.
(Ordinance 18-02, ex. A, sec. 11.407, adopted 2/12/18)
(a) 
A person shall be deemed guilty of a misdemeanor and shall, upon conviction, be punished by a fine, if the person:
(1) 
Fails to collect the tax imposed by this division;
(2) 
Fails to file a report as required by this division;
(3) 
Fails to pay the finance director the tax when payment is due; or
(4) 
Files a false report.
(b) 
An offense committed under subsection (a) of this section is not to exceed $500.00. [sic] A conviction for an offense committed under subsection (a) of this section is punishable by a fine not to exceed $500.00 and each 24 hours of any such violation shall constitute a separate offense.
(c) 
In addition to any criminal penalties imposed under subsection (b) of this section, a person failing to pay the tax to the finance director by the twentieth day of the month following the month in which the tax is required by this division to be collected shall pay an amount equal to 5% of the tax due as a penalty.
(d) 
If the person who is required to pay fails to file a report or does not pay the tax to the finance director within 30 days after it is due, the person shall forfeit to the town an additional 5% of the amount of tax due.
(e) 
Delinquent taxes draw interest at a rate of prime rate plus 1%, as published in the Wall Street Journal on the first day of each calendar year that is not a Saturday, Sunday, or legal holiday, per year, beginning 30 days from the date the tax is due to the finance director.
(f) 
The town is authorized to bring suit against any person required to collect the tax imposed by this division and required to pay the collection over to the town and who has failed to file a report or failed to pay the tax when due or filed a false report. Such suit may seek to collect such tax not paid or to enjoin such person from operating a hotel in the town until the tax is paid or the report is filed or both, as applicable [and the town] may seek any other remedies provided by law.
(g) 
In addition to the amount of any tax owed, a person is liable to the town for all reasonable attorney’s fees incurred by the town in enforcing this division against the person and in collecting any tax owed by the person under this division.
(Ordinance 18-02, ex. A, sec. 11.408, adopted 2/12/18)
(a) 
The revenue derived from this occupancy tax shall be used for any or all of the purposes authorized by V.T.C.A., Tax Code, chapter 351, as amended.
(b) 
Revenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry, and that use is limited to those authorized by state law.
(c) 
Revenue derived from the tax authorized by this division shall be expended in a manner directly enhancing and promoting tourism and the convention and hotel industry as permitted by state law. That revenue may not be used for the general revenue purposes or general governmental operations of the town.
(Ordinance 18-02, ex. A, sec. 11.409, adopted 2/12/18; Ordinance adopting 2021 Code)
(a) 
The town council may by contract delegate to one or more persons, including another governmental entity or a private organization (“contracting entity”), the management or supervision of programs and activities funded with revenue from the hotel occupancy tax. The town council shall approve in writing in advance the annual budget of the contracting entity and shall require it to make periodic reports to the town council at least annually, listing the expenditures made by the contracting entity of the hotel occupancy tax revenue provided by the municipality.
(b) 
The contracting entity shall maintain hotel occupancy tax revenue in a separate account established for that purpose and may not commingle that revenue with any other money or maintain it in any other account.
(c) 
The municipality may not delegate to any person or entity the management or supervision of its convention and visitors programs and activities funded with revenue from the hotel occupancy tax other than by contract as provided herein.
(d) 
The approval by the town council of the annual budget of the contracting entity creates a fiduciary duty in the contracting entity with respect to the revenue provided by the municipality to the contracting entity.
(e) 
The contracting entity shall maintain complete and accurate financial records of each expenditure of hotel occupancy tax revenue made by the contracting entity and, on request of the town council or other authorized person, shall make the records available for inspection and review.
(f) 
Hotel occupancy tax revenue spent for authorized purposes may be spent for day-to-day operations, supplies, salaries, office rental, travel expenses and other administrative costs only if those administrative costs are incurred directly in the promotion and servicing expenditures authorized by V.T.C.A., Tax Code chapter 351, or any successor statute. If the municipality or other entity conducts an activity for which hotel occupancy tax revenue may be used, and such activity is a joint activity with another non-authorized activity, then the portion of the total administrative costs of the entity for which hotel occupancy tax revenue may be used may not exceed the portion of those administrative costs actually incurred in conducting the activities for which the hotel occupancy tax revenue may be used.
(g) 
Hotel occupancy tax revenue may not be spent for travel for a person to attend an event or conduct an activity, the primary purpose of which is not directly related to the promotion of tourism and the convention and hotel industry or the performance of the person’s job in an efficient and professional manner.
(Ordinance 18-02, ex. A, sec. 11.410, adopted 2/12/18)
The town may enter into a contract with an independent nonprofit agency outside of the town government to administer all or any part of the funds made available under this division to carry out the purposes expressed in V.T.C.A., Tax Code, chapter 351.
(Ordinance 18-02, ex. A, sec. 11.411, adopted 2/12/18)