[1]
Editor’s note–Former section 6.06.012, pertaining to the Lakeway Visitors Commission and deriving from Ordinance 2014-12-15-01 adopted 12/15/14, was repealed and deleted in its entirety by Ordinance 2015-07-20-04 adopted 7/20/15.
For the purpose of regulating business within the city, the following terms, phrases, words and their derivations shall have the meaning ascribed to them in this section, except where the context clearly indicates a different meaning.
Consideration.
The cost of the room in a hotel only if the room is ordinarily used for sleeping, and not including 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.
Hotel.
Any building or buildings in which the public may for a consideration obtain sleeping accommodations, including hotels, motels, tourist homes, houses of courts (tourist courts), lodging houses, inns, roominghouses, bed and breakfast establishments, short-term rental use, as defined in article 22.02 of this code, or other buildings where rooms are furnished for a consideration, but not including hospitals, sanitariums or nursing homes, dormitories or other housing provided by higher education institutions.
Occupancy.
The use or possession, or the right to the use or possession, of any room or rooms in a hotel if the room is one which is ordinarily used for sleeping and if the occupant is other than a permanent resident as hereinafter defined.
Occupant.
Anyone who, for a consideration, uses, possesses, or has a right to use or possess any room or rooms in a hotel under any lease, concession, permit, right of access, license, contract or agreement, other than a permanent resident as hereinafter defined.
Permanent resident.
Any occupant who has or shall have the right of occupancy of any room or rooms in a hotel for at least thirty (30) consecutive days during the calendar year or preceding year.
Person.
Any individual, company, group, organization, entity (including government entities), corporation or association owning, operating, managing or controlling any hotel, as the term hotel is defined by state and local law.
Quarterly period.
The regular calendar quarters of the year, the first quarter being composed of the months of October, November and December; the second quarter being the months of January, February, and March; the third quarter being the months of April, May and June; and the fourth quarter being the months of July, August, and September.
Tax collector.
The director of finance of the city.
(Ordinance 2012-04-16-01 adopted 4/16/12; Ordinance 2015-12-21-02, ex. A, adopted 12/21/15)
(a) 
There is hereby levied a tax for the first year of its effectiveness of three percent (3%) of the price paid for a room in a hotel on every 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 use or possession of a room that is in a hotel, costs two dollars ($2.00) or more each day, and is ordinarily used for sleeping. 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. The amount of the tax in the second year of its effectiveness shall be five percent (5%), and the amount of the tax in the third year of its effectiveness and thereafter shall be seven percent (7%).
(b) 
Exemptions are as follows:
(1) 
No tax shall be imposed upon a “permanent resident,” as defined above.
(2) 
No tax shall be imposed upon employees of U.S. government agencies traveling on official business that have a valid government identification card.
(3) 
No tax shall be imposed for diplomatic personnel who present a tax exemption card issued by the United States Department of State.
(4) 
No tax shall be imposed upon state officers or employees traveling on official business with a properly issued hotel tax exemption photo identification or card; including, but not limited to: judicial officials, heads of agencies, and members of state boards and commissions and the Texas Legislature.
(5) 
No tax shall be imposed for federal or state military personnel traveling on official military business. This exemption does not cover military staff on leave or between stations.
(Ordinance 2012-04-16-01 adopted 4/16/12; Ordinance 2013-03-18-04 adopted 3/18/13)
(a) 
Every person operating, managing or controlling any hotel shall collect the tax levied by this article for the city and deliver same to the tax collector, the director of finance for the city.
(b) 
A person who is required to collect the tax under this section is hereby authorized to retain from the tax collected by such person no more than one (1) percent of the tax collected to reimburse the person for that person’s costs in collecting said tax for the city. Notwithstanding the one-percent reimbursement, no reimbursement shall be authorized or allowed in any case where the person collecting the tax fails to pay the tax over to the city or fails to file reports with the city as required. In every case where the person collecting the tax fails to pay the tax to the city or fails to file the reports required, the one-percent reimbursement fee shall be forfeited and the total tax collected shall be due to the city.
(Ordinance 2012-04-16-01 adopted 4/16/12; Ordinance 2013-03-18-04 adopted 3/18/13)
On the last day of the month following each quarterly period, every person required to collect the tax imposed hereby shall file a report with the collector of taxes showing the price paid for all room occupancies in the preceding quarter, the amount of the tax collected on such occupancies, and any other information the collector may reasonably require. Such person shall pay the tax due on such occupancies at the time of filing such report. The report shall be in a form prescribed by the collector. Additionally, the person shall file a copy of the quarterly report filed with the state hotel occupancy tax. The collector is hereby authorized and directed to do all such things necessary or convenient to carry out the terms of this article. The collector shall have the authority to request and receive within reasonable time documentation for information contained in the report to the city by the hotel.
(Ordinance 2012-04-16-01 adopted 4/16/12)
The tax collector shall have the power to make such rules and regulations as are reasonable and necessary to effectively collect the tax levied hereby, and shall upon reasonable notice have access to books and records necessary to enable him/her 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 2012-04-16-01 adopted 4/16/12)
(a) 
If any person shall fail to file a report as required herein or shall file a false report or shall fail to pay to the tax collector the tax as imposed herein when said report or payment is due, the person is liable to the city for, in addition to the amount of any tax owed as imposed herein, a penalty equal to 15 percent (15%) of the total amount of the tax owed if the tax has been delinquent for at least one complete municipal fiscal quarter, and any other costs/fees applicable under Texas Tax Code, section 351.004, as amended. However, such penalty shall never be less than ten dollars ($10.00). Delinquent taxes shall draw interest at the rate of ten percent (10%) per annum beginning sixty (60) days from the due date.
(b) 
Any person violating any of the provisions of this article, including hotel operators who fail to collect the tax, fail to file a return, or file a false return, or who are delinquent in their tax payment, shall be guilty of a misdemeanor and shall, upon conviction, be fined as provided for in the general penalty provision found in section 1.01.009 of this code, and each twenty-four (24) hours of any such violation shall constitute a separate offense.
(Ordinance 2013-03-18-04 adopted 3/18/13)
The city is hereby authorized to take the following actions against any person required to collect the tax imposed hereby and pay the collection over to the city and who has failed to file a report, or filed a false report, or failed to pay the tax when due:
(1) 
Bring suit against the hotel for noncompliance; and/or
(2) 
Bring suit against the hotel seeking any other remedies provided under state law.
(Ordinance 2012-04-16-01 adopted 4/16/12)
The city attorney is hereby authorized to bring suit against any person required to collect the tax imposed hereby and required to pay the collection over to the city and who has failed to file a report, or filed a false report, or failed to pay the tax when due. Such suit may seek to collect such tax not paid or to enjoin such person from operating a hotel in the city until the tax is paid or the report is filed, or both, as applicable and as provided in the injunction.
(Ordinance 2012-04-16-01 adopted 4/16/12)
(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 (as mandated by state law, Texas Tax Code, chapter 351):
(1) 
The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities (as such is defined in Texas Tax Code, section 351.001);
(2) 
The furnishing of facilities, personnel, and materials for 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 municipality 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 recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms; and
(5) 
Historical restoration and preservation projects or activities or advertising and conducting solicitation and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums:
(A) 
Which are at or in the immediate vicinity of convention center facilities; or
(B) 
Which are located elsewhere in the municipality or its vicinity that would be frequented by tourists, convention delegates or other visitors to the municipality.
(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 municipality which are not directly related to promoting the hotel and convention industry or tourism in the municipality.
(Ordinance 2012-04-16-01 adopted 4/16/12)
(a) 
The city council may, by contract, delegate to a person, including another governmental entity or a private organization, the management or supervision of programs and activities funded with revenue from the hotel occupancy tax. The city council shall approve in writing in advance the annual budget of the entity to which it delegates those functions, and shall require the entity to make periodic reports to the city council at least annually listing the expenditures made by the entity of revenue from the tax provided by the municipality.
(b) 
The entity must maintain the revenue provided by the municipality from the tax in a separate account established for that purpose and may not commingle that revenue with any other money or maintain it to 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 city council of the annual budget of the entity to which these functions are delegated shall maintain complete and accurate financial records of each expenditure of hotel occupancy tax revenue made by the person or entity and, on request of the city council or other person, shall make the records available for inspection and review.
(e) 
A person or entity with whom the municipality contracts to conduct authorized activities shall maintain complete and accurate financial records of each expenditure of hotel occupancy tax revenue made by the person or entity and, on request of the city council or other person, shall make the records available for inspection and review.
(f) 
Hotel occupancy tax revenue 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 of expenditures hereinbefore authorized. The portion of the total administrative costs for activities for which hotel occupancy tax revenue may be used may not exceed the administrative costs actually incurred in conducting the authorized activities.
(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 the person’s job in an efficient and professional manner.
(Ordinance 2012-04-16-01 adopted 4/16/12)
The provisions of this article shall apply equally to hotels within the corporate limits of the city and to hotels in the extraterritorial jurisdiction (ETJ) of the city pursuant to state law, provided that the combined rate of state, county and municipal hotel occupancy taxes in the ETJ shall not exceed fifteen percent (15%) of the price for a room in a hotel, as provided by Texas Tax Code, section 351.0025.
(Ordinance 2012-04-16-01 adopted 4/16/12)