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:
The city council or the city council’s designated representative.
The price of, or value received for, the right to use a sleeping
room, bed, or dormitory space or other sleeping facility in a hotel,
and includes the price of conveniences customarily provided in connection
with sleeping accommodations, including mattress, sheets, bedspreads,
pillows, pillow cases, bed frames, air conditioning, electricity,
lighting, water, soap, towels, wash cloths, toilet tissue, shower
or bath facilities, lavatory, chairs, trash receptacles, plus any
other goods or services which are not ordinarily subject to sales
tax. The consideration paid for a sleeping room or facility shall
not include the price of food served, nor the price of personal services
rendered to the occupant which are unrelated to cleaning and readying
a room for occupancy, nor any sales tax, nor occupancy tax assessed
by other governmental agencies, provided that these charges are stated
separately on the folio or invoice of the occupant. Charges not stated
separately shall be presumed to be part of the consideration paid
for occupancy of a sleeping room or sleeping facility, and shall be
taxed under this article.
Has the meaning assigned by section 156.001 of the Tax Code,
as may be amended, which currently reads: Any building in which members
of the public obtain sleeping accommodations for consideration. The
term includes a hotel, motel, tourist home, tourist house, tourist
court, lodginghouse, inn, roominghouse, or bed and breakfast. The
term does not include:
A hospital, sanitarium, or nursing home;
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 sleeping accommodations for persons engaged in an educational
program or activity at the institution; or
An oilfield portable unit, as defined by section 152.001.
Any individual, company, corporation, or association owning,
operating, managing, or controlling any hotel.
The use or possession, or the right to the use or possession
of any room or rooms, sleeping space, bed or other facility in a hotel
for any purpose.
Any guest who, for a consideration, uses or possesses, or
has a right to the use or possession of, any room, sleeping space
or facility 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 to occupancy
of any room in a hotel for at least 30 consecutive days, so long as
there is no interruption of payment for the period.
The regular calendar quarters of the year corresponding to
the period that tax reports are filed with the state comptroller and
means the regular calendar quarters of the year, the first quarter
being composed of the months of January, February and March; the second
quarter being the months of April, May and June; the third quarter
being the months of July, August and September; and the fourth quarter
being the months of October, November and December. The municipal
fiscal quarters are composed of the same months, but the first quarter
is composed of the months of October, November and December.
(Ordinance 650 adopted 8/18/14)
(a)
There is hereby levied a tax upon the price of occupancy of any room
or space furnished by any hotel located within the city limits or
the extraterritorial jurisdiction of the city, where such cost of
occupancy is at the rate of two dollars ($2.00) or more per day, such
tax to be equal to seven percent of the price for occupancy.
(b)
Exceptions.
(1)
No tax shall be imposed hereunder upon a permanent resident so long
as there is no interruption of payment for the 30-day period, and
so long as there is no interruption in the right of occupancy for
the permanent resident.
(2)
A United States governmental entity described in Tax Code section
156.103(a) is exempt from the payment of tax authorized by this chapter.
(3)
A state governmental entity described in Tax Code section 156.103(b)
shall pay the tax imposed by this chapter but is entitled to a refund
of the tax paid.
(4)
A person who is described by Tax Code section 156.103(d) is exempt
from the payment of the tax authorized by this chapter.
(5)
A person who is described by Tax Code section 156.103(c) shall pay
the tax imposed by this chapter but the state governmental entity
with whom the person is associated is entitled to a refund of the
tax paid.
(6)
To receive a refund of tax paid under this chapter, the governmental
entity entitled to the refund must file a refund claim on a form provided
by the municipality and containing the information required by the
municipality. The comptroller by rule shall prescribe the form that
must be used and the information that must be provided.
(7)
A governmental entity may file a refund claim with the municipality
under this chapter only for each calendar quarter for all reimbursements
accrued during that quarter. The municipality may adopt an ordinance
to enforce this section.
(8)
The right to use or possess a room in a hotel is exempt from taxation under this chapter if the person required to collect the tax receives, in good faith from a guest, an exemption certificate stating qualification for an exemption provided in subsection (3). The exemption must be supported by the documentation required under rules adopted by the comptroller and the municipality.
(Ordinance 650 adopted 8/18/14)
Every lodging provider in the city shall immediately register
with the administrator on a form provided by said administrator. Lodging
providers engaged in such business must so register not later than
thirty (30) days after the date that this article becomes effective.
Such registration shall set forth that name under which such person
transacts business or intends to transact business, the location of
his/her place(s) of business and such other information which would
facilitate the administration of the tax as prescribed by the administrator.
The registration shall be signed by the owner if a natural person;
in case of ownership by an association or partnership, by a member
or partner; in case of ownership by a corporation, by an officer,
accompanied by legal documentation that authorizes that person to
sign such registration on behalf of the legal entity. The administrator
shall, after such registration, issue without charge a certificate
of authority to each lodging provider to collect the tax from the
occupant. A separate registration shall be required for each place
of business of a lodging provider. Each certificate shall state the
name and location of the business to which it is applicable.
(Ordinance 650 adopted 8/18/14)
(a)
Every person owning, operating, managing or controlling any hotel
located within the city limits, or extraterritorial jurisdiction,
shall collect the tax imposed under this article and pay same to the
administrator with the reports required hereinafter.
(b)
The lodging provider shall provide a receipt to each guest, which
receipt shall reflect both the amount of consideration and the amounts
of this and other tax applicable.
(c)
This tax shall be due from the guest, and shall be collected by the
lodging provider at the same time that the consideration is collected.
(d)
The lodging provider shall be liable for any amount of tax that he/she
fails to collect appropriately; and must remit to the city any amount
of tax collected in excess of that which should have been collected.
(Ordinance 650 adopted 8/18/14)
On or before the twentieth day of the month following each quarterly
period, every lodging provider required hereby to collect the tax
imposed by this article shall file a report with the administrator
showing the consideration paid for all room occupancies in the preceding
quarter, the amount of tax collected on the city’s behalf on
such occupancies, and any other information as the administrator may
reasonably require. Such persons shall pay over the tax due on such
occupancies at the time of filing such report. There shall also be
furnished to the administrator of the city at the time of payment
of such tax, a copy of the quarterly tax report filed with the state
comptroller in connection with the state hotel occupancy tax.
(Ordinance 650 adopted 8/18/14)
The administrator shall adopt such procedures, rules and regulations
as are reasonably necessary to effectively collect the tax levied
herein, and shall, upon request of any lodging provider owning, operating,
managing or controlling any hotel, furnish a copy of such procedures,
rules and regulations for the guidance of such lodging provider to
facilitate the collection of such tax as such collection is required
herein. The administrator shall be permitted to have access to books
and records during reasonable business hours as shall be necessary
to enable the administrator to determine the correctness of the amount
due under the provisions of this article, or to determine whether
or not a report should have been filed and the amount, if necessary,
of taxes due. The lodging provider is entitled to 30 days prior notice
should the administrator seek to inspect books and records under this
section.
(Ordinance 650 adopted 8/18/14)
(a)
The proceeds of the hotel occupancy tax levied by this article shall
be used solely at the discretion of the city council for the purpose
of advertising and encouraging the growth of tourist and convention
activity in the city, including the financial support of any convention
or civic center that may be built in the city, and those purposes
set forth in the Texas Tax Code, as amended; and shall be allocated
by contract, authorized by city council, in accordance with any applicable
provisions of the Texas Tax Code, as amended.
(b)
No later than sixty (60) days after the end of each calendar year,
all recipients of any hotel occupancy tax receipts under this article,
other than the amounts authorized by city council and used by the
city departments, shall submit an audited report to the city council,
showing in detail the disbursement and use of all such amounts paid
to each and the services or goods and/or merchandise received for
the same.
(c)
Thirty (30) days prior to the end of the contract period, each recipient
shall forward to the administrator evidence of justification, with
a proposed budget, for the granting of a new contract by the city
council for the future contract period. The receipt of any funds by
any recipient shall not imply any right of automatic renewal of such
contract for the ensuing years; such option under the laws of the
state shall rest exclusively with the city council.
(Ordinance 650 adopted 8/18/14)
If any lodging provider required by the provisions of this article
to collect the tax, make reports as required herein, and pay to the
administrator the tax imposed herein shall fail to collect such tax,
shall fail to file such reports, or shall fail to pay such tax in
a timely manner, or if any such lodging provider shall file a false
report, such lodging provider shall be deemed guilty of a misdemeanor
and upon conviction be punished by fine not to exceed five hundred
dollars ($500.00). Each incident of failure to file and/or pay tax
is considered to be a separate offense.
(Ordinance 650 adopted 8/18/14)
Delinquent taxes shall draw interest at the rate provided in
section 111.060(b) of the Texas Tax Code, beginning from the first
day after the date due until the tax is paid, as reflected in, section
351.0042(b) of the Texas Tax Code.
(Ordinance 650 adopted 8/18/14)
The administrator shall refer any hotel occupancy tax account
that has a delinquent balance older than thirty (30) days to the city
attorney for the purpose of filing a suit to enjoin the hotel owner,
operator, manager, and other persons in control from operating any
hotel in the city or its extraterritorial jurisdiction until the tax
is paid and/or the report filed. This remedy shall be in addition
to the remedy of a collection suit and in addition to the municipal
court criminal complaint that may be filed for each violation of this
article.
(Ordinance 650 adopted 8/18/14)
In addition to any amount owed under chapter 351 of the Texas
Tax Code or this section a person against suit is brought under chapter
351 or this section is liable to the municipality for:
(1)
The municipality’s reasonable attorney’s fees;
(2)
The costs of an audit conducted under Texas Tax Code section 351.004
as determined by the city using a reasonable rate, if:
(A)
The tax has been delinquent for at least two complete municipal fiscal
quarters at the time the audit is conducted; and
(B)
The city has not received a disbursement from the comptroller as
provided by Texas Tax Code section 156.2513 related to the person’s
concurrent state tax delinquency described by Texas Tax Code section
351.008;
(3)
A penalty equal to 15 percent of the total amount of the tax owed,
including accrued unpaid interest as of the first day of the first
complete calendar quarter following a delinquency, if the tax has
been delinquent for at least one complete municipal fiscal quarter;
and
(4)
Interest at the highest rate authorized under Texas Tax Code section
351.0042.
(Ordinance 650 adopted 8/18/14)
(a)
If a person required to file a tax report under Texas Tax Code chapter
351 does not file the report as required by the city, the city may,
at its discretion determine the amount of tax due under this chapter
by:
(b)
If the lodging provider did not file a tax report under Texas Tax
Code section 156.151 for that reporting period in relation to that
hotel, the city may, at its option, and approval by city council,
estimate the amount of tax due by using the tax reports in relation
to that hotel filed during the previous calendar year under Texas
Tax Code chapter 351 or section 156.151. Such estimate is prima facie
evidence of the amount of tax due for that period in relation to that
hotel. The authority to conduct an audit under this section is in
addition to any other audit authority provided by statute or this
article. The city may directly perform an audit authorized by this
section or contract with another person to perform the audit on an
hourly rate or fixed-fee basis. A city shall provide at least 30 days
written notice to a lodging provider who is required to collect the
tax imposed by this section with respect to a hotel before conducting
an audit of the hotel under this section.
(Ordinance 650 adopted 8/18/14)
The administrator shall not refer a delinquent account to the
city attorney for the purpose of enjoining the hotel operators from
doing business within the city limits or in its extraterritorial jurisdiction,
if the owner, manager, operator, or other persons in control provides
an acceptable surety bond in an amount equal to the city hotel occupancy
tax collected by the subject hotel in the six (6) best net revenue
months of the twelve (12) full calendar months immediately prior to
the acquisition of the bond, said bond to ensure payment for a one-year
period, that coincides with the beginning and ending of the regular
calendar quarters of the year, and be updated and approved by the
administrator annually if said hotel operators desire to continue
such protection from business-closing during a period of delinquency.
(Ordinance 650 adopted 8/18/14)
(a)
The city shall permit lodging provider who is required to collect
and pay over to the municipality the tax authorized by this chapter
to withhold one-half of one percent of the amount collected for the
city and required to be reported as reimbursement to the lodging provider
for the costs in collecting the tax.
(b)
The reimbursement provided by this section shall be forfeited because
of a failure to pay the tax or to file a report as required by the
city.
(Ordinance 650 adopted 8/18/14)
(a)
If a lodging provider who is liable for the payment of a tax under
this article is the owner of a 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 by a person designated by the city to provide the
receipt showing that the amount has been paid or a certificate showing
that no tax 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 in writing that the administrator shall provide a receipt under subsection (a) 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 administrator shall issue the certificate or statement not later than the 60th day after the date that the administrator receives the request.
(d)
If the purchaser provides a copy of the request, filed stamped by the city secretary, required in subsection (c) and the administrator under subsection (a) fails to issue the certificate or statement within the period provided by subsection (c), the purchaser is released from the obligation to withhold the purchase price or pay the amount due.
(Ordinance 650 adopted 8/18/14)
