There is hereby levied a tax upon the occupancy of any room or space furnished by any motel or hotel where such cost of occupancy is of two dollars ($2.00) or more per day, such tax to be equal to seven percent (7%) of the consideration paid by the occupant of such room or space to such hotel or motel (exclusive of other occupancy taxes imposed by other governmental agencies).
(Ordinance 863 adopted 4/17/86)
The following words, terms and phrases as applicable to the construction of this article and as used herein are hereby defined as follows:
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, lodginghouse, inn, or roominghouse, but does not include a hospital, sanitarium, or nursing home.
Permanent resident.
A person who has the right to use or possess a room in a hotel for at least thirty (30) consecutive days, so long as there is no interruption of the payment for the period.
Person.
Any individual, company, or association.
Price.
The cost of the room in a hotel, but shall not include the cost of food served by the hotel and the cost of personal services performed by the hotel for the person except for those services related to cleaning and readying the room for use or possession.
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 July, August, and September; and the fourth quarter is composed of the months of October, November, and December.
(Ordinance adopting Code)
(a) 
Every person owning, operating, managing or controlling any hotel shall collect the tax imposed herein for the city.
(b) 
On or before the last day of the month following each quarterly period, any and every person required to collect the tax imposed herein shall file a report with the city secretary showing the price paid for the use or possession or for the right to the use or possession of a room in the hotel owned, operated, managed or controlled by the person in the preceding quarter, the amount of the tax collected and any other information the city secretary may reasonably require. Such person shall pay the city secretary the taxes due at the time of the filing of such report.
(c) 
At the end of each quarter, each hotel shall provide a copy of the quarterly report filed with the state comptroller to the city.
(Ordinance adopting Code)
(a) 
Revenue derived from the occupancy tax hereby levied shall be used as follows:
(1) 
Convention facilities.
The acquisition of sites for, and the constructing, improving, enlarging, equipping, repairing, operating, and maintaining of convention facilities including, but not limited to, civic centers, convention buildings, auditoriums, coliseums, and parking areas or facilities for the parking or storage of motor vehicles or other conveyances located at or in the immediate vicinity of the convention facilities.
(2) 
Promotional and tourist advertising.
For general promotional and tourist advertising of the city and its vicinity and for conducting a solicitation and operating program to attract conventions and visitors, as authorized by section 3c(1) and 3c(3) of article 1269j-4.1, Vernon’s Civil Statutes of Texas.
(b) 
The revenue derived from the occupancy tax and remitted to the entities designated by the city council above set forth shall be expended in a manner directly enhancing and promoting tourism in the convention and hotel industry as required by section 351.101 of the Tax Code of the state, as the same may be from time to time amended.
(c) 
Said entities must comply with said section 351.101 of the Tax Code by presenting their annual budget to the city council for its written approval in advance of implementation of the budget and shall make periodic reports to the city council at least quarterly listing the expenditures made by said entity with revenue from the tax authorized by this article. The revenues provided to the entities by the occupancy tax shall be maintained in a separate account established for that purpose and may not be commingled with revenues from any other money.
(d) 
Each entity shall enter into a contract with the city that incorporates the provisions of Tax Code chapter 351, entitled “Municipal Hotel Occupancy Taxes,” related to the use and allocation of the tax revenues in accordance with said chapter.
(Ordinance 1074 adopted 4/19/07)
If any person shall fail to collect the tax imposed herein, or shall fail to file a report as required herein, or shall fail to pay to the city secretary the tax as imposed herein when said report or payment is due, or shall file a false report, such person shall forfeit an additional five per cent (5%) of such tax; however, the penalty shall never be less than one dollar ($1.00). Delinquent taxes shall draw interest at the rate of six per cent (6%) per annum, beginning 60 days from the date due.
(Ordinance 1074 adopted 4/19/07)
(a) 
Creation of board.
The city council hereby creates a hotel occupancy tax revenue advisory board consisting of five (5) members. The members of the board shall be as follows:
(1) 
Three (3) members appointed by the city council;
(2) 
The city manager or his or her designee; and
(3) 
The executive director of the chamber of commerce or his or her designee.
(b) 
Purpose of board.
The board shall make recommendations to the city council for expenditures of hotel occupancy tax revenue collected by the city and not allocated to another entity for management. The city council shall have the final determination and approval of the expenditure of hotel occupancy tax revenue.
(c) 
Terms of board members.
The board members shall be appointed for two (2) year terms, and may be removed and/or replaced by the city council at the discretion of the council.
(d) 
Lawful expenditures.
The hotel occupancy tax revenue received by the city may be used only to promote tourism and the convention and hotel industry. All expenditures of hotel occupancy tax revenue must meet the following two-part test:
(1) 
Directly enhance and promote tourism and the convention and hotel industry in the city; and
(2) 
Must clearly fit into at least one of the statutorily provided categories as set forth in section 351.101 of the Texas Tax Code.
(e) 
Application process.
The board shall consider applications submitted for use of the hotel occupancy tax revenue on application forms approved by the city council and the board shall require the use of post-event reporting forms, on forms approved by the city council, for all applicants who receive hotel occupancy tax revenues.
(f) 
Texas Open Meetings Act.
The board is subject to and shall follow the posting and meeting requirements of the Texas Open Meetings Act.
(Ordinance 1197 adopted 2/7/19)