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:
Consideration.
The cost of the room in a 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.
Hotel.
A building in which members of the public obtain sleeping accommodations for consideration. The term includes a hotel, motel, tourist home, tourist house, tourist court, lodginghouse, inn, roominghouse, or bed and breakfast. The 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 those terms are defined by section 61.003, Education Code, used by the institution for the purpose of providing sleeping accommodations for persons engaged in an educational program or activity at the institution.
Occupancy.
The use or possession or the 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 possession extends for a period of less than thirty (30) days.
Person.
An individual, company, corporation or association owning, operating, managing, or controlling any hotel.
(Ordinance adopting Code; 1990 Code, sec. 12-71)
There is hereby levied a tax upon the cost of occupancy of any sleeping room furnished by any hotel where the cost of occupancy is at the rate of two dollars ($2.00) or more per day, such tax to be equal to seven (7) percent of the consideration paid by the occupant of such room, space or facility to such hotel, exclusive of other occupancy taxes imposed by other governmental agencies. Such seven-percent hotel occupancy tax shall be levied on hotels both inside the city limits and in the extraterritorial jurisdiction of the city. Any revenues from the taxes derived hereunder from the consideration paid by an occupant of the sleeping room to the hotel may only be used for the purposes described in V.T.C.A., Tax Code, section 351.001.
(1990 Code, sec. 12-72; Ordinance adopting Code)
Persons who are exempt from payment of the hotel occupancy tax imposed under this article are the persons described in V.T.C.A., Tax Code, section 351.006, under the conditions imposed by said section 351.006.
(Ordinance adopting Code)
Inasmuch as the tax levied under this article is seven (7) percent of the total consideration paid for the occupancy of hotel rooms, the city shall reserve a portion of the tax revenue equal to at least one (1) percent of the costs of the occupancy of hotel rooms for the purpose of advertising and conducting solicitation programs to acquaint potential users with public meeting and convention facilities, and for promotion of tourism and advertising of the city and its vicinity either by the city or through contract with persons or organizations selected by the city.
(1990 Code, sec. 12-73)
Every person required to collect the tax levied by this article shall file a report with the city treasurer by the last day of the month following each quarterly period. The report shall include the consideration paid for all room or sleeping space occupancies in the preceding calendar quarter, the amount of taxes collected on such occupancies, and any other information the city treasurer may reasonably require. A copy of the state hotel and motel tax report may be used to meet this reporting requirement. A copy of the state report and check payable to the city for the taxes due shall be forwarded to the city treasurer.
(1990 Code, sec. 12-74)
The city treasurer shall have the power to make such rules and regulations as are necessary to effectively collect the tax levied in this article and shall, upon reasonable notice, have access to books and records necessary to enable the city treasurer 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.
(1990 Code, sec. 12-75)
The person required to file a report under this article may deduct and withhold from the taxes otherwise due to the city on the quarterly return, as reimbursement for the cost of collecting the tax, one (1) percent of the amount of the tax due as shown on the report. If taxes due under this article are not paid to the city within the time required or if the person required to file a report fails to file the report when due, the person forfeits the claim to reimbursement that could have been taken if the tax had been paid or the report filed when due.
(1990 Code, sec. 12-76)
If any person shall fail to file a report as required in this article or shall fail to pay the tax imposed under this article, when such report or payment is due, such person shall forfeit five (5) percent of the amount due as a penalty, and after the first thirty (30) days shall forfeit an additional five (5) percent of such tax, provided that the penalty shall never be less than one dollar ($1.00). Delinquent taxes shall draw interest at the rate of ten (10) percent per annum beginning sixty (60) days from the date due.
(1990 Code, sec. 12-77)