The following words, terms and phrases are, for the purpose of this article and except where the context clearly indicates a different meaning, defined as follows:
Consideration
means the cost of the room in such hotel only if the room is one ordinarily used for sleeping, and shall not include 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
means 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 "hotel" does not include:
(1) 
A hospital, sanitarium, or nursing home; or
(2) 
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 V.T.C.A., Education Code § 61.003, used by the institution for the purpose of providing sleeping accommodations for persons engaged in an educational program or activity at the institution.
Occupancy
means the use or possession, or the right to the use or possession, of any room in a hotel if the room is one ordinarily used for sleeping and if the occupant's use, possession or right to use or possession extends for a period of less than 30 days.
Occupant
means anyone who, for a consideration, uses, possesses or has a right to use or possess any room in a hotel if the room is one ordinarily used for sleeping.
Person
means any individual, company, corporation or association owning, operating, managing or controlling any hotel.
Quarterly period
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.
(Code 1975, § 22-50)
(a) 
Levy of tax.
There is hereby levied a tax upon the cost of occupancy of any sleeping room furnished by any hotel where such cost of occupancy is at the rate of $2.00 or more per day, such tax to be equal to seven percent of the consideration paid by the occupant of the room to such hotel, exclusive of other occupancy taxes imposed by other governmental agencies.
(b) 
Exemption for corporations or associations operated for religious, charitable or educational purposes.
No tax shall be imposed hereunder upon a corporation or association organized and operated exclusively for religious, charitable or educational purposes, no part of the net earnings of which inures to the benefit of any private shareholder or individual.
(c) 
Issue of revenue bonds.
If the city council determines that revenue bonds should be issued for any of the purposes allowed by V.T.C.A., Tax Code § 351.101, all or any portion of the tax levied under subsection (a) of this section may be pledged as security for such bonds to the extent allowed by law.
(d) 
Use of portion of tax for advertising and solicitation programs.
One percent of the cost of such occupancy shall be reserved from the tax by the city for the purpose of advertising and conducting solicitation programs to acquaint potential users with public meeting and convention facilities and for promotion of tourism and advertising of the city and its vicinity either by the city or through contract with persons or organizations selected by the city.
(Code 1975, § 22-51)
Every person owning, operating, managing or controlling any hotel shall collect the tax imposed by section 74-102 for the city.
(Code 1975, § 22-52)
On the last day of the month following each quarterly period, every person required in section 74-103 to collect the tax imposed in this article shall file a report with the director of finance or as otherwise designated by the city manager showing the consideration paid for all room occupancies in the preceding quarter, the amount of the tax collected on such occupancies and any other information the director of finance may reasonably require. Such person shall pay the tax due on such occupancies at the time of filing such report. There shall also be furnished to the director of finance of the city, at the time of payment of the tax, a copy of the quarterly report filed with the comptroller of public accounts of the state in connection with the state hotel occupancy tax.
(Code 1975, § 22-53)
The director of finance or as otherwise designated by the city manager 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.
(Code 1975, § 22-54)
Any person who fails to remit the tax imposed by this article when due, or fails to file a report when required, shall pay a penalty of five percent of the amount of the tax due. If the owner fails to pay the tax or file the report within 30 days after the day on which the tax was due or the report was required, he shall pay an additional penalty of five percent of the amount of the tax due. Delinquent taxes and accrued penalties shall draw interest at the rate of ten percent per year beginning 60 days after the day on which the tax was due.
(Code 1975, § 22-55)
If any person required by the provisions of this article to collect the tax imposed in this article, or make reports as required in this article and pay to the director of finance the tax imposed in this article shall fail to collect such tax, file such report, or pay such tax, or if any such person shall file a false report, such person shall be deemed guilty of a misdemeanor and, upon conviction, be punished by a fine not to exceed $500.00. Each day any such report remains delinquent shall constitute a separate offense.
(Code 1975, § 22-56)