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. Words used in the present tense include the future tense. Words used in the plural number include the singular, and words in the singular include the plural. The word “shall” is always mandatory. The word “herein” means in this article. The word “regulations” means the provisions of any applicable ordinance, rule, regulation or policy. The words “used or occupied,” as applied to any room or building, shall be construed to include the words “intended, arranged, or agreed to be used or occupied.”
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, lodging house, inn, rooming house, or bed and breakfast. The term does not include a hospital, sanitarium, nursing home, or dormitory as defined in section 156.001, Tex. Tax Code.
Person or persons.
Any human being or legal entity, and includes a corporation, a partnership, and an incorporated or unincorporated association owning, operating, managing or controlling any hotel within the city or its ETJ.
Quarter or 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 the months of July, August, and September, and the fourth quarter is composed of the months of October, November and December.
Tourism.
The guidance or management of tourists.
Visitor information center.
A building or a portion of a building used to distribute or disseminate information to tourists.
(Ordinance 2005-O-283, sec. 1, adopted 5/19/05)
There is hereby levied a tax upon the cost of occupancy of sleeping rooms in hotels located within the city or within the city’s extraterritorial jurisdiction (ETJ) for which the occupancy cost of the room is two dollars ($2.00) or more per day. Such occupancy tax shall be seven percent (7%) of the consideration paid for such sleeping room. The tax shall not apply to a person who is a permanent resident of the sleeping room or who is otherwise exempt from paying the tax pursuant to chapter 156, Tex. Tax Code.
(Ordinance 2005-O-283, sec. 2, adopted 5/19/05)
Every person owning, operating, managing or controlling any hotel within the city or its ETJ shall collect the tax imposed and provided herein.
(Ordinance 2005-O-283, sec. 3, adopted 5/19/05)
(a) 
On or before the last day of the month following each quarter, every person required to collect the tax imposed herein shall file a report with the city secretary showing the consideration paid for all sleeping rooms during the preceding quarter and the amount of tax collected on such occupancies and sleeping rooms. Said person shall also be required to provide a copy of the report provided to the state in conjunction with the state hotel occupancy tax.
(b) 
Every person required to collect the tax imposed herein shall register with the city on the form provided by the city, which registration form shall include at a minimum the following information: (1) the name and contact information of the owner of the hotel; (2) the name and contact information of the primary contact for the hotel, if different from the owner; and (3) the address and legal description of the property upon which the hotel is located. Registration forms must be updated if the information provided changes. Persons required to collect the tax imposed herein shall maintain a current, complete registration form with the city at all times while operating or intending to operate a hotel within the city limits or extraterritorial jurisdiction.
(Ordinance 2014-O-458, sec. 1, adopted 1/9/14)
On or before the last day of the month following each quarter, every person required to collect the tax imposed herein shall pay the tax due to the city for the preceding quarterly period. If the occupancy of any sleeping room is by state law exempt from the tax established pursuant to section 11.04.002, it shall be the responsibility of the person required to collect the tax to document and provide records establishing the exemption.
(Ordinance 2005-O-283, sec. 5, adopted 5/19/05)
Any person who shall fail to file a report as required herein, or who shall fail to pay the tax as imposed herein when said report or payment is due, shall forfeit five percent (5%) of the amount due as a penalty. In the event any past due tax is not paid within thirty (30) days after the due date, the person shall forfeit an additional five percent (5%) of such tax as an additional penalty.
(Ordinance 2005-O-283, sec. 6, adopted 5/19/05)
Taxes remaining due and unpaid from and after the last day of the calendar month following the quarter for which such taxes are due and payable shall draw interest at the rate of the prime rate plus one percent, as published in the Wall Street Journal on the first day of the calendar year for which the tax is due and unpaid, beginning sixty (60) days from the last day of the quarterly period for which such taxes are payable.
(Ordinance 2005-O-283, sec. 7, adopted 5/19/05)
If the matter of a report not being filed or taxes not being paid when due is forwarded to the city attorney for action, an amount equal to fifteen percent (15%) of the taxes, penalties and interest finally determined to be owing and payable shall be added to such amount as attorney fees and costs of collection. In the event that any action is required to be filed in any state court to obtain the required report or to collect delinquent taxes, the person(s) responsible for collecting the taxes and filing the report shall be liable to the city for its reasonable attorney fees and costs, provided that such attorney fees shall in no event be less than fifteen percent (15%) of the total amount of taxes, penalties and interest due and payable.
(Ordinance 2005-O-283, sec. 8, adopted 5/19/05)
The city administrator is authorized and directed to notify the city attorney as to any hotel occupancy tax for which a report is not timely filed, or for which the tax is not timely paid, as required by this article. Upon the city administrator referring the delinquent report or delinquent tax to the city attorney, an additional amount equal to fifteen percent (15%) of the total amount due in taxes, penalties and interest shall be added to the amount due and payable. Upon the receipt of such notification from the city administrator, the city attorney:
(1) 
Is directed to promptly give written notice to the person owning, operating, managing or controlling the hotel for which such report has not been received, or for which the taxes have not been paid, demanding the report be promptly filed and that the taxes be promptly paid, as applicable;
(2) 
Is directed to pursue the demand for performance and compliance with this article, including the payment and collection of all applicable penalties, interest, late charges, and attorney fees and charges; and
(3) 
In the event the report is not filed or, as applicable, all amounts due and payable are not paid, within thirty (30) days after the date of the demand by the city attorney, the city attorney is authorized and directed to file suit to:
(A) 
Obtain the filing of any report required by this article;
(B) 
Obtain the payment of all taxes, penalties, interest and fees due and payable pursuant to this article;
(C) 
Obtain an injunction prohibiting the continued operation of the hotel for which the report has not been filed, or for which the taxes have not been paid; and
(D) 
Obtain such other and further relief that may be available at law or in equity.
(Ordinance 2005-O-283, sec. 9, adopted 5/19/05)
Subject to the legislative discretion of this and future city councils, fifty percent (50%) of all hotel occupancy taxes received by the city shall be deposited into an escrow account to be held and maintained by the city. The funds and balances of the escrow account shall be managed and invested in compliance with the city’s investment policy and all earnings of such escrow account shall be deposited in and remain in such account. The escrow account shall be reserved, held and increased for any purpose allowed by chapter 351, subchapter B, Texas Tax Code, as amended.
(Ordinance 2017-O-510, sec. 2, adopted 5/11/17)
(a) 
Subject to future appropriations and actions by the city council, fifty percent (50%) of the annual hotel occupancy tax receipts is hereby set aside and appropriated for the advertisement of the city and promoting tourism within the city. Such funds are currently appropriated annually for the promotion of tourism and the operation of a visitor information center pursuant to a contract between the city and the chamber of commerce.
(b) 
Any funds set aside under subsection (a) that remain unused at the end of each fiscal year shall be transferred to the HOT capital fund, which shall be used for capital purchases authorized by chapter 351, subchapter B, Texas Tax Code.
(Ordinance 2017-O-510, sec. 3, adopted 5/11/17)
A person required by this article to collect the tax imposed herein, or to make reports or register as required herein, who fails to collect the tax, file the report, register with the city, or pay the tax shall be deemed guilty of a misdemeanor and, upon conviction, shall be punished by a fine not to exceed five hundred dollars ($500.00) for each offense. The failure to collect the tax, to file the required report, register with the city, or to pay the tax collected prior to such payment becoming past due shall each constitute and be a separate offense punishable by fine. Each day that an offense continues shall constitute a separate offense.
(Ordinance 2014-O-458, sec. 2, adopted 1/9/14)