Pursuant to Section 352.003 of the Tax Code, there is hereby levied a tax upon the cost of occupancy of any sleeping room furnished by any hotel, such tax not to exceed seven percent (7%) of the consideration paid by the occupant for such room to such hotel, exclusive of other occupancy taxes imposed by other governmental agencies.
(Ordinance 1394-01 adopted 1/16/01)
The following terms are defined as follows:
Hotel.
Any building or buildings in which the public may obtain sleeping accommodations for consideration. The term shall include hotels, motels, tourist homes, houses or courts, lodging houses, inns, rooming houses, bed and breakfasts, short-term rentals, or other buildings where rooms are furnished for a consideration, but “hotel” shall not be defined so as to include hospitals, sanitariums, nursing homes, or 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 sleep accommodations for persons engaged in an educational program or activity at the institution.
Consideration.
The cost of the room, sleeping space, bed or dormitory space or other facilities in a hotel and shall not include the cost of any food served or personal services rendered to the occupant of such room or space for occupancy and shall not include any tax assessed by any other governmental agency for occupancy of the room.
Occupancy.
The use or possession, or the right to the use or possession, of any room or space in a hotel if the room is one ordinarily used for sleeping and if the occupant’s use, possession, or right to use or possess, extends for a period of less than thirty (30) days.
Occupant.
Anyone who for a consideration, uses, possesses, or has a right to use or possess any room in a hotel under any lease, concession, permit, right of access, license, contract or agreement, if the room is one ordinarily used for sleeping.
Permanent Resident.
Any occupant who has or shall have the right of occupancy of any room or sleeping space or facility in a hotel for at least thirty (30) consecutive days during the current calendar year or preceding year.
Person.
Any individual, company, corporation or association, owning, operating, managing, or controlling any hotel.
Quarterly Period.
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 July, August, and September; and the fourth quarter is composed of the months of October, November, and December.
(Ordinance 1394-01 adopted 1/16/01; Ordinance 2180-19, sec. 2, adopted 10/15/19)
Every person owning, operating, managing or controlling any hotel or short-term rental in the city shall collect the tax imposed by this article for the city.
(Ordinance 2180-19, sec. 2, adopted 10/15/19)
(a) 
The taxes provided for herein shall be paid on a monthly period basis. On or before the twentieth (20th) day of the month following each monthly period, every person required by this article to collect the taxes imposed herein shall file a report with the director of finance of the city showing the consideration paid for all room occupancies in the preceding month, the amount of the taxes collected on such occupancies and such other information as the director of finance may reasonably require. Such person shall pay the taxes due on such occupancies at the time of filing of such report.
(b) 
If a taxpayer identified in subsection (a) above owes less than five hundred dollars ($500.00) for a calendar month or fifteen hundred dollars ($1,500.00) for a calendar quarter, the taxpayer qualifies as a quarterly filer having a reporting period of a calendar quarter and the report(s) and taxes are due and payable on the twentieth (20th) day of the month following each quarterly period.
(Ordinance 1823-09 adopted 6/2/09)
The director of finance of the City of DeSoto shall have the power to make such rules and regulations as are necessary to effectively collect the tax levied herein, and shall upon reasonable notice have access to the books and records necessary to enable the director of finance 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.
(1995 Code of Ordinances, Chapter 1, Article 1.600, Section 1.602)
(a) 
If any person shall fail to collect the tax imposed herein, or fail to file a report as required herein, or shall fail to pay to the director of finance the tax imposed herein when the report for payment is due, or shall file a false report, then such person shall be deemed guilty of a misdemeanor and, upon conviction, be punished by a fine in accordance with Section 1.106 of this Code. In addition, such person who fails to remit the tax imposed by this article within the time required shall forfeit five percent (5%) of the amount due as a penalty, and after the first thirty-one (31) days shall forfeit an additional five percent (5%) of such tax. Delinquent taxes hereunder shall draw interest at the rate of ten percent (10%) per annum beginning sixty (60) days from the date the tax is due.
(b) 
The city attorney or other attorney acting for the city may bring suit against a person who is required to collect the tax imposed by this article and pay the collections over to the city and who has failed to file a tax report or pay the tax when due to collect the tax not paid or to enjoin the person from operating a hotel in the city until the tax is paid or the report filed, as applicable, as provided by the Court's order. In addition to the amount of any tax owed under this article, the person is liable to the city for the city's reasonable attorney's fees and a penalty equal to fifteen percent (15%) of the total amount of the tax owed.
(Ordinance 1394-01 adopted 1/16/01)
(a) 
If a person who is liable for the payment of an amount under this article is the owner of the hotel and sells the hotel, the successor to the seller or the seller's assignee shall withhold an amount of the purchase price sufficient to pay the amount due until the seller provides a receipt from the city tax assessor/collector showing that the amount has been paid or a certificate stating that no amount is due.
(b) 
The purchaser of a hotel who fails to withhold an amount of the purchase price as required by this section is liable for the amount required to be withheld to the extent of the value of the purchase price.
(c) 
The purchaser of a hotel may request that the city tax assessor/collector issue a certificate stating that no tax is due or issue a statement of the amount required to be paid before a certificate may be issued. The city tax assessor/collector shall issue the certificate or statement not later than 60 days after receiving the request.
(d) 
If the city tax assessor/collector fails to issue the certificate or statement within the applicable period provided by subsection (c) of this section, the purchaser is released from the obligation to withhold the purchase price or pay the amount due.
(e) 
The period of limitation during which the city tax assessor/collector may assess tax against the purchaser under this section is four years from the date when the former owner of the hotel sells the hotel or when a determination is made against the former owner, whichever event occurs later. At any time within three years after a deficiency determination against the purchaser has become due and payable, the city attorney may bring an action in a district court of Dallas County or a court of any other state of the United States in the name of the city to collect the delinquent amounts, together with penalties and interest.
(Ordinance 1394-01 adopted 1/16/01)
All revenue from any occupancy tax authorized under this article shall be used only for those purposes authorized under V.T.C.A., Tax Code Chapter 351, subchapter B [Section 351.101 et seq.], as amended.
(Ordinance 1394-01 adopted 1/16/01)