The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Hotel
A building in which members of the public obtain sleeping accommodations for consideration. The term includes but is not limited to a hotel, motel, tourist home, tourist house, tourist court, lodging-house, inn, rooming house, short-term rental, or bed and breakfast. The term does not include a hospital, sanitarium, nursing home, or dormitory as defined in V.T.C.A., Tax Code sec. 156.001.
Permanent resident
means a person who has the right to use or possess a room in a hotel for at least 30 consecutive days, so long as there is no interruption of payment for the period.
Person
means any human being or legal entity and includes a corporation, a partnership, and an incorporated or unincorporated association owning, operating, managing or controlling any hotel within the city or its extraterritorial jurisdiction.
Quarter or quarterly period
means a quarter of the calendar year. The first quarter is composed of the months of January, February, and March; the second quarter is composed of the months of April, May, and June; the third quarter is composed of the months of July, August, and September; and the fourth quarter is composed of the months of October, November and December.
Short-Term Rental (STR)
Any structure used for transient or guest lodging accommodations, rented for compensation of a dwelling unit, that is not owner-occupied (other than a duplex), which includes but is not limited to a single-family residence, townhouses, owner-occupied duplex, accessory structure, short-term rental dwelling unit, and other residential real estate improvements, in which the public may obtain sleeping accommodations for a period less than thirty (30) consecutive days. The term applies regardless of whether the dwelling was originally constructed or zoned as a residential dwelling. This term does not apply to bed and breakfasts, duplexes (unless they are owner-occupied), multifamily projects, apartment complexes, hotels, motels, or recreational vehicle parks. This term is a general definition of STRs and is inclusive of the distinct types of STRs.
(Ordinance 998, sec. 1, adopted 7/18/05; Ordinance 1509 adopted 12/18/2023)
There is hereby levied a tax upon the cost of occupancy of sleeping rooms in hotels, located within the city or within the city’s extraterritorial jurisdiction (“ETJ”), for which the occupancy cost of the room is $2.00 or more per day. Such occupancy tax shall be seven percent of the consideration paid for such sleeping room. The tax shall not apply to a person who is a permanent resident of the sleeping room or who is otherwise exempt from paying the tax pursuant to V.T.C.A., Tax Code ch. 156, as amended.
(Ordinance 998, sec. 2, adopted 7/18/05)
Every person owning, operating, managing or controlling any hotel within the city or its ETJ shall collect the tax imposed and provided herein.
(Ordinance 998, sec. 3, adopted 7/18/05)
On or before the last day of the first month following each quarter, every person required to collect the tax imposed herein shall file a report with the city manager or his designee, showing the consideration paid for all sleeping rooms during the preceding quarter and the amount of tax collected on such occupancies and sleeping rooms. The report shall be in a form prescribed by the city manager or his designee. Additionally, on or before the last day of the first month following each quarter, every person required to collect the tax imposed herein shall file with the city manager or his designee, a copy of the quarterly hotel occupancy report submitted by said person to the state comptroller in connection with the state hotel occupancy tax.
(Ordinance 998, sec. 4, adopted 7/18/05)
On or before the last day of the first month following each quarter, every person required to collect the tax imposed herein shall pay the tax due to the city for the preceding quarterly period. If the occupancy of any sleeping room is by state law exempt from the tax established pursuant to section 94-172, it shall be the responsibility of the person required to collect the tax to document and provide records establishing the exemption.
(Ordinance 998, sec. 5, adopted 7/18/05)
Any person who shall fail to file a report as required herein or who shall fail to pay the tax as imposed herein when said report or payment is due, shall forfeit five percent of the amount due as a penalty. In the event any past due tax is not paid within 30 days after the due date, the person shall forfeit an additional five percent of such tax as an additional penalty.
(Ordinance 998, sec. 6, adopted 7/18/05)
Taxes remaining due and unpaid from and after the last day of the first calendar month following the quarter for which such taxes are due and payable shall draw interest at the rate of the prime rate plus one percent, as published in The Wall Street Journal on the first day of the calendar year for which the tax is due and unpaid.
(Ordinance 998, sec. 7, adopted 7/18/05)
If the matter of a report not being filed, or taxes not being paid, when due, is forwarded to the city attorney for action, an amount equal to 15 percent of the taxes, penalties and interest finally determined to be owing and payable shall be added to such amount as attorney fees and costs of collection. The person shall also be liable to the city for the costs of an audit conducted under section 94-180, as determined by the municipality using a reasonable rate, but only if the tax has been delinquent for at least two complete municipal fiscal quarters at the time the audit is conducted. In the event that any action is required to be filed in any state court to obtain the required report or to collect delinquent taxes, the person responsible for collecting the taxes and filing the report shall be liable to the city for its reasonable attorney fees and costs, provided that such attorney fees shall in no event be less than 15 percent of the total amount of taxes, penalties and interest due and payable, and shall also be liable for the costs of an audit conducted under section 94-180, as determined by the municipality using a reasonable rate, but only if the tax has been delinquent for at least two complete municipal fiscal quarters at the time the audit is conducted.
(Ordinance 998, sec. 8, adopted 7/18/05)
(a) 
The city manager is authorized and directed to notify the city attorney as to any hotel occupancy tax for which a report is not timely filed, or for which the tax is not timely paid, as required by this article. Upon the city manager referring the delinquent report or delinquent tax to the city attorney, an additional amount equal to 15 percent of the total amount due in taxes, penalties and interest shall be added to the amount due and payable. Upon the receipt of such notification from the city manager, the city attorney is directed to:
(1) 
Promptly give written notice to the person owning, operating, managing or controlling the hotel for which such report has not been received, or for which the taxes have not been paid, demanding the report be promptly filed and that the taxes be promptly paid, as applicable.
(2) 
Pursue the demand for performance and compliance with this article, including the payment and collection of all applicable penalties, interest, late charges, attorney fees, costs and charges.
(b) 
In the event the report is not filed or, as applicable, all amounts due and payable are not paid, within 30 days after the date of the demand by the city attorney, the city attorney is authorized and directed to file suit to:
(1) 
Obtain the filing of any report required by this article;
(2) 
Obtain the payment of all taxes, penalties, interest, costs and fees due and payable pursuant to this article;
(3) 
Obtain an injunction prohibiting the continued operation of the hotel for which the report has not been filed, or for which the taxes have not been paid; and
(4) 
To obtain such other and further relief that may be available at law or in equity.
(Ordinance 998, sec. 9, adopted 7/18/05)
(a) 
If a person required to file a tax report under this article does not file the tax report as required by the city, the city attorney, or other attorney acting for the city, may determine the amount of tax due under this article by:
(1) 
Conducting an audit of each hotel in relation to which the person did not file the report as required by the city; or
(2) 
Using the tax report filed for the appropriate reporting period under V.T.C.A., Tax Code sec. 156.151, in relation to that hotel.
(b) 
If the person did not file a tax report under V.T.C.A., Tax Code sec. 156.151, for that reporting period in relation to that hotel, the city attorney, or other attorney acting for the city, may estimate the amount of tax due by using the tax reports in relation to that hotel filed during the previous calendar year under this article or V.T.C.A., Tax Code sec. 156.151. An estimate made under this section is prima facie evidence of the amount of tax due for that period in relation to that hotel.
(c) 
The authority to conduct an audit under this section is in addition to any other audit authority provided by statute, charter, or ordinance.
(Ordinance 998, sec. 10, adopted 7/18/05)
If any person required by this article to collect the tax imposed herein, or to make reports as required herein, fails to collect the tax, file the report, or pay the tax, or if such person shall file a false report, said person shall be deemed guilty of a misdemeanor and, upon conviction, shall be punished by a fine not to exceed $500.00 for each offense. The failure to collect the tax, to file the required report, and to pay the tax collected prior to such payment becoming past due, or the filing of a false report, shall each constitute and be a separate offense punishable by fine.
(Ordinance 998, sec. 11, adopted 7/18/05)
The city manager or his designee, 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 the books and records of any person required by this article to collect the tax imposed herein deemed by the city manager or his designee, as appropriate to determine the correctness and accuracy of any report filed as required herein, and the amount of taxes due to the city as required herein.
(Ordinance 998, sec. 12, adopted 7/18/05)