The following word, terms, and phrases are defined as follows:
City.
The City of McLendon-Chisholm, Texas.
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 structure or improvement on property in which the public may, for a consideration, obtain sleeping accommodations, including hotels, motels, short-term rentals, tourist homes, tourist houses, tourist courts, lodging houses, inns, rooming houses, or bed and breakfasts, air "B n B's," or where rooms are furnished for a consideration, but not including hospitals, sanitariums, nursing homes or other housing facilities owned and operated by institutions of higher education as described in Texas Tax Code section 156.001.
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. The term does not include a permanent resident as hereinafter defined.
Permanent Resident.
An occupant who has or shall have the right of occupancy of any room or room in a hotel for at least thirty (30) consecutive days during the current calendar year of preceding year.
Person.
Any individual, company, corporation or association owning, operating, managing or controlling any hotel within the City or the City's extraterritorial jurisdiction.
Quarterly Period.
The regular municipal fiscal 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.
(Ordinance 2020-06 adopted 6/23/20; Ordinance 2026-03 adopted 1/13/2026)
There is hereby levied a tax upon the cost of occupancy of any hotel within the City or its extraterritorial jurisdiction where the cost of occupancy is at the rate of $2 or more per day, such tax to be equal to seven percent (7%) of the consideration paid by the occupant of such room to such hotel, exclusive of the occupancy taxes imposed by other governmental agencies.
(1) 
No tax shall be imposed hereunder on a permanent resident.
(2) 
No tax shall be imposed hereunder upon a corporation or association organized and operated exclusively for religious, charitable, or educational purposes, no part of the net earnings of which derives to the benefit of any private shareholder or individual.
(3) 
No tax shall be imposed hereunder upon federal or state employees traveling on official business.
(Ordinance 2020-06 adopted 6/23/20; Ordinance 2026-03 adopted 1/13/2026)
Every person owning, operating, managing or controlling any hotel within the City or its extraterritorial jurisdiction shall collect the tax levied by this article for the City of McLendon-Chisholm.
(Ordinance 2020-06 adopted 6/23/20; Ordinance 2026-03 adopted 1/13/2026)
(a) 
On or before the last day of the month immediately following each quarterly period, every person required to collect the tax imposed herein shall file a report with the City Secretary showing the consideration paid for all room occupancies in the preceding quarter, the amount of the tax collected on such occupancies, and any other information the City Secretary may reasonably require. Such person shall pay the amount of tax collected from the occupants during the period of the report at the time of filing the report.
(b) 
There shall also be furnished to the City Secretary at the time of payment of said tax, a copy of the quarterly report filed with the State Comptroller in connection with the state hotel occupancy tax.
(c) 
The City Secretary shall, upon reasonable notice, have access to books and records kept by any person required to collect the tax imposed herein which may be necessary to enable the City Secretary to determine the correctness of any report files as required by this section and the amount of taxes due under the provisions of this article.
(Ordinance 2020-06 adopted 6/23/20; Ordinance 2026-03 adopted 1/13/2026)
(a) 
If any person required by the provisions of this article to collect the tax imposed herein, or make reports as required herein, and pay to the City the tax imposed herein, shall fail to collect such tax, file such report or pay such tax for at least one complete municipal fiscal quarter, the person shall pay to the City the tax due, together with a penalty of fifteen percent (15%) of the tax due that is not timely filed.
(b) 
In addition to the penalty set out herein, a person who fails to pay a tax due under this article shall pay the City interest on the unpaid amount at the legal rate provided by Texas Tax Code section 111.060(b).
(Ordinance 2020-06 adopted 6/23/20; Ordinance 2026-03 adopted 1/13/2026)
If any person required by the provisions of this article to collect the tax imposed herein, or make reports as required herein, and pay to the City the tax imposed herein, shall fail to collect such tax, file such report or pay such tax, or if any such person shall file a false report, or such person shall violate any of the provisions of this article, the City is authorized to impose a misdemeanor fine for a violation of this article. A person who violates this article shall be guilty of a misdemeanor and upon conviction shall be assessed a fine not to exceed $500.
(Ordinance 2020-06 adopted 6/23/20; Ordinance 2026-03 adopted 1/13/2026)
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 collecting the tax;
(2) 
Bring suit against the hotel for noncompliance; and/or
(3) 
Bring suit against the hotel seeking any other remedies provided under Texas law.
(Ordinance 2020-06 adopted 6/23/20; Ordinance 2026-03 adopted 1/13/2026)
The proceeds of the hotel occupancy tax levied by this article may be used by the City for the sole purpose of promoting tourism and the convention and hotel industry and that use is limited to the following:
(1) 
The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation and maintenance of convention center facilities or visitor information centers, or both;
(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 City 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, photograph, 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;
(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) 
At or in the immediate vicinity of convention center facilities or visitor information centers; or
(B) 
Located elsewhere in the City or its vicinity that would be frequented by tourists and convention delegates, or other visitors to the City.
(Ordinance 2020-06 adopted 6/23/20; Ordinance 2026-03 adopted 1/13/2026)