The following words, terms and phrases are defined as follows:
The city secretary of the City of Smithville, Texas.
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.
Any building or buildings in which the public may, for a
consideration, obtain sleeping accommodations, including hotels, motels,
tourist homes, houses or courts, lodging houses, inns, rooming houses,
or other buildings where rooms are furnished for a consideration,
but not including hospitals, sanitariums or nursing homes.
The regular calendar months of the year.
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 herein defined.
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 herein defined.
Any occupant who has or shall have the right to occupancy
of any room or rooms in a hotel for at least thirty (30) consecutive
days during the calendar year or preceding year.
Any individual, company, corporation or association owning,
operating, managing or controlling any hotel.
(1987 Code, sec. 27A; 2001 Code,
sec. 11.301)
There is hereby levied a tax of seven percent (7.0%) 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 the 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. Exceptions are as follows:
(1)
No tax shall be imposed upon a permanent resident.
(2)
No tax shall be imposed for federal or state employees traveling
on official business.
(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 for federal or state military personnel traveling
on official military business. This exemption does not cover military
staff on leave or between stations.
(1987 Code, sec. 27B; 2001 Code,
sec. 11.302)
Every person owning, operating, managing or controlling any
hotel shall collect the tax levied by this article for the city. 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 hereinbelow
provided, this reimbursement may be forfeited at the discretion of
the city if the hotel operator fails to timely pay over the tax or
timely file a report as required by the city or files a false report
with the city.
(1987 Code, sec. 27C; 2001 Code,
sec. 11.303)
At the end of each quarter, each hotel shall provide a copy
of the report filed with the state comptroller to the city.
(Ordinance adopting 2001 Code; 2001
Code, sec. 11.304; Ordinance adopting 2020 Code)
The city secretary 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 or 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.
(1987 Code, sec. 27E; 2001 Code,
sec. 11.305)
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 city secretary the tax as imposed herein when said report or payment is due, he shall forfeit five percent (5%) of the amount due as penalty, and after the first thirty (30) days he shall forfeit an additional five percent (5%) of such tax. However, such penalty shall never be less than one dollar ($1.00). Delinquent taxes shall draw interest at the rate of ten percent (10%) per annum beginning sixty (60) days from the due date. Any person violating any of the provisions of this article, including hotel operators who fail to collect the tax, fail to file a return, file a false return, or are delinquent in their tax payment, shall be guilty of a misdemeanor and shall, upon conviction, be fined in accordance with the general penalty provision in section 1.01.009 of this code, and each twenty-four (24) hours of any such violation shall constitute a separate offense.
(1987 Code, sec. 27F; 2001 Code,
sec. 11.306)
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)
Require the forfeiture of any revenue the city allowed the hotel
operator to retain for its cost of collection of the tax;
(2)
Bring suit against the hotel for noncompliance; and/or
(3)
Bring suit against the hotel, seeking any other remedies provided
under state law.
(1987 Code, sec. 27G; 2001 Code,
sec. 11.307)
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 by the
court’s order.
(1987 Code, sec. 27H; 2001 Code,
sec. 11.308)
(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 those provided in state
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. 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.
(1987 Code, sec. 27I; 2001 Code,
sec. 11.309; Ordinance adopting 2020 Code)
(a)
Authorized; reporting of expenditures.
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 hereby.
(b)
Separate account required.
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 in any other account.
(c)
Contract; financial records.
The city 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. The
approval by the city council of the annual budget of the entity to
which these functions are delegated creates a fiduciary duty in the
person or entity with respect to the revenue provided by the municipality
to the person or entity under the contract. 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.
(d)
Authorized expenditures.
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
expenditures hereinbefore authorized. 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 related directly thereto
in an efficient and professional manner.
(1987 Code, sec. 27J; 2001 Code,
sec. 11.310)
The hotel occupancy tax authorized herein shall become effective
commencing on the first day of the month following the date upon which
this article, or an amended form thereof, has been adopted and enacted
by the city.
(1987 Code, sec. 27K; 2001 Code,
sec. 11.311)
The tax levied hereby is levied on every person who pays for
the use or possession or for the right to the use or possession of
a room that is in a hotel that is within the city or within its extraterritorial
jurisdiction.
(1987 Code, sec. 27L; 2001 Code,
sec. 11.312)
