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Editor’s note–Former section 11.04.012 pertaining to management and administration and deriving from Ordinance 656 adopted 5/23/11, was repealed and deleted in its entirety by Ordinance 883 adopted 10/10/2023.
For the purpose of this article, the following definitions shall apply unless the context clearly indicates or requires a different meaning:
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 buildings in which the public may, for a consideration, obtain sleeping accommodations, including hotels, motels, tourist homes, bed and breakfast inns, houses or courts, lodginghouses, inns, roominghouses or other buildings where rooms are furnished for a consideration, but not including hospitals, sanitariums or nursing homes.
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, other than a permanent resident as hereinafter defined.
Permanent resident.
Any occupant who has or shall have the right to occupancy of any room or rooms in a hotel for at least 30 consecutive days during the calendar year or preceding year.
Person.
Any individual, company, corporation or association owning, operating, managing or controlling any hotel.
Quarterly period.
The regular calendar 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.
Tax assessor-collector.
The tax assessor and collector of the city.
(1999 Code, sec. 33.25)
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 as provided in section 1.01.009 of this code, and each 24 hours of any such violation shall constitute a separate offense.
(1999 Code, sec. 33.99)
There is hereby levied a tax of seven percent (7%) 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 $2.00 or more each day, and is ordinarily used for sleeping. The price of a room in the hotel does not include the cost of food served by the hotel and the cost or personal services performed by the hotel for the person except those services related to the cleaning and readying of the room for possession.
(Ordinance 692 adopted 1/13/14)
(a) 
Every person owning, operating, managing or controlling any hotel shall collect the tax levied by this article for the city.
(b) 
The hotel operator shall be entitled to 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.
(1999 Code, sec. 33.27)
On the last day of the month following each quarterly period, every person required to collect the tax imposed hereby shall file a report with the tax assessor-collector showing the price paid for all room occupancies in the preceding quarter, the amount of the tax collected on such occupancies, and any other information the assessor-collector may reasonably require. In addition, the person shall file a copy of the quarterly report required by the state comptroller of public accounts in connection with the state hotel occupancy tax. The person shall pay the tax due on such occupancies at the time of filing the report. The report shall be in a form prescribed by the assessor-collector. The assessor-collector is authorized and directed to do all such things necessary or convenient to carry out the terms of this article. The assessor-collector shall have the authority to request and receive within a reasonable time documentation for information contained in the report to the city by the hotel.
(1999 Code, sec. 33.28; Ordinance adopting Code)
The assessor-collector 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 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.
(1999 Code, sec. 33.29)
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 tax assessor-collector the tax as imposed herein when the report or payment is due, he shall pay 10% of the amount due as penalty, and after the first 30 days he shall pay an additional 5% of such tax. However, such penalty shall never be less than $1.00. Delinquent taxes shall draw interest at the rate of 10% per annum beginning 60 days from the due date.
(Ordinance 692 adopted 1/13/14)
The city is authorized to take the following actions against any person required to collect the tax imposed 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 state law.
(1999 Code, sec. 33.31)
The city attorney is 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. The suit may seek to collect the 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 in the injunction.
(1999 Code, sec. 33.32)
(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 the following:
(1) 
The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation and maintenance of convention center facilities (as defined in Tex. Tax Code section 351.001) 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 municipality or its vicinity;
(4) 
The encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, dramas, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, 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; and
(5) 
Historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums:
(A) 
Which are at or in the immediate vicinity of convention center facilities or visitor information centers; or
(B) 
Which are located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates; and
(6) 
For a municipality located in a county with a population of 290,000 or less, expenses, including promotion expenses, directly related to a sporting event in which the majority of participants are tourists who substantially increase economic activity at hotels and motels within the municipality or its vicinity.
(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 as hereinbefore delineated. 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.
(1999 Code, sec. 33.33; Ordinance adopting Code)
(a) 
The city council may, by contract, delegate to a person, including another governmental entity or a private organization, the management or supervision of the 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 quarterly, listing the expenditures made by the entity of revenue from the tax provided by the municipality.
(b) 
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) 
The municipality 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.
(d) 
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.
(e) 
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.
(f) 
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 of expenditures hereinbefore authorized. The portion of the total administrative costs for activities for which hotel occupancy tax revenue may be used may not exceed the administrative costs actually incurred in conducting the authorized activities.
(g) 
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 the person’s job in an efficient and professional manner.
(1999 Code, sec. 33.34; Ordinance adopting Code)