This article is adopted under the authority of the Constitution
and laws of the state, particularly including chapters 156 and 351,
Texas Tax Code.
(Ordinance 2022-003 adopted 6/14/22)
The purpose of this article is to enact a hotel occupancy tax
within the corporate limits of the village.
(Ordinance 2022-003 adopted 6/14/22)
For the purpose of regulating business within the city, the
following terms, phrases, words and their derivations shall have the
meaning ascribed to them in this section, except where the context
clearly indicates a different meaning.
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.
Any building or buildings in which the public may for a consideration
obtain sleeping accommodations, including hotels, motels, tourist
homes, houses of courts (tourist courts), lodging houses, inns, rooming
houses, bed and breakfast establishments or other buildings where
rooms are furnished for a consideration, but not including hospitals,
sanitariums or nursing homes, dormitories or other housing provided
by higher education institutions.
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.
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.
Any occupant who has or shall have the right of occupancy
of any room or rooms in a hotel for thirty (30) consecutive days during
the calendar year or preceding year.
Any individual, company, group, organization, entity (including
government entities), corporation or association owning, operating,
managing or controlling any hotel, as the term hotel is defined by
state and local law.
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.
The director of finance of the city.
(Ordinance 2022-003 adopted 6/14/22)
(a)
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 use or possession of a room
that is in a hotel, costs two dollars ($2.00) or more each day, and
is ordinarily used for sleeping. The price of a room in a hotel does
not includes the cost of food served by the hotel and the cost of
personal services performed by the hotel for the person except those
services related to the cleaning and readying of the room for possession.
(b)
Exceptions
are as follows:
(1)
No tax shall be imposed upon a “permanent resident,”
as defined above.
(2)
No tax shall be imposed for federal or state employees traveling
on official business.
(3)
No tax shall be imposed for diplomatic personnel who present a tax
exemption card issued by the United States Department of State.
(4)
No tax shall be imposed for federal or state military personnel traveling
on official military business. This exemption does not cover military
staff on leave or between stations.
(Ordinance 2022-003 adopted 6/14/22)
Every person operating, managing or controlling any hotel shall
collect the tax levied by this article for the city and deliver same
to the tax collector, the director of finance for the city.
(Ordinance 2022-003 adopted 6/14/22)
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 collector of taxes 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 collector may reasonably
require. Such person shall pay the tax due on such occupancies at
the time of filing such report. The report shall be in a form prescribed
by the collector. Additionally, the person shall file a copy of the
quarterly report filed with state hotel occupancy tax. The collector
is hereby authorized and directed to do all such things necessary
or convenient to carry out the terms of this article. The 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.
(Ordinance 2022-003 adopted 6/14/22)
The tax 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/her 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.
(Ordinance 2022-003 adopted 6/14/22)
(a)
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 collector the
tax as imposed herein when said report or payment is due, he shall
forfeit five percent (5%) of the amount due as penalty, and after
the first thirty (30) days he shall forfeit an additional five percent
(5%) of such tax. However, such penalty shall never be less than ten
dollars ($10.00). Delinquent taxes shall draw interest at the rate
of ten percent (10%) per annum beginning sixty (60) days from the
due date.
(b)
Any person violating any of the provisions of this article, including hotel operators who fail to collect the tax, fail to file a return, or file a false return, or who are delinquent in their tax payment, shall be guilty of a misdemeanor and shall, upon conviction, be fined as provided for in the general penalty provision found in section 1.01.009 of this code, and each twenty-four (24)hours of any such violation shall constitute a separate offense.
(Ordinance 2022-003 adopted 6/14/22)
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)
Bring
suit against the hotel for noncompliance; and/or
(2)
Bring
suit against the hotel seeking any other remedies provided under state
law.
(Ordinance 2022-003 adopted 6/14/22)
The city attorney is hereby 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.
Such suit may seek to collect such 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.
(Ordinance 2022-003 adopted 6/14/22)
(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 (as mandated
by state law, Texas Tax Code, chapter 351):
(1)
The acquisition of sites for and the construction, improvement enlarging,
equipping, repairing, operation, and maintenance of convention center
facilities (as such is defined in Texas Tax Code, section 351.001);
(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 it 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, 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 solicitation and promotional programs to
encourage tourists and convention delegates to visit preserved historic
sites or museums:
(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.
(Ordinance 2022-003 adopted 6/14/22)
(a)
The
city council may, by contract, delegate to a person, including another
governmental entity or a private organization, the management or supervision
of 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 annually 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 to
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 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.
(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.
(Ordinance 2022-003 adopted 6/14/22)
