§ 30-17. Levy; exceptions.

(a)

There is hereby levied a tax upon the cost of occupancy of any room or space furnished by any hotel 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 (7) percent of the consideration paid by the occupant of such room to such hotel, exclusive of other occupancy taxes imposed by other governmental agencies.

(b)

No tax shall be imposed hereunder upon a permanent resident.

(1)

House Bill 651 added a provision to the permanent resident exemption that requires that there must not be an interruption in payment for the period the exemption is claimed.

(2)

An occupant acquires the status of a permanent resident by either a commitment to occupy a room at least thirty (30) consecutive days or by actually having occupied a room for thirty (30) consecutive days.

(3)

A person who enters occupancy under a binding agreement will be treated as a permanent resident as of the date of the binding agreement, and no tax will be due if there is no interruption or break in paying for the number of rooms contracted for during the period stated in the binding agreement. A person who wants to rent rooms above the number contracted for must pay tax on the additional rooms until the person qualifies as a permanent resident for those rooms. Should a person occupy and pay for a number of rooms that is less than the number contracted for, the lesser number will not be taxable.

(4)

A person who enters occupancy without commitment to stay thirty (30) consecutive days will owe the tax for the first thirty (30) days.

(5)

A permanent resident will no longer be exempt for a portion of a calendar year and the next calendar year as in the past. They will be exempt for the period of time that they qualify as a permanent resident.

(c)

Religious, charitable and educational organizations and their employees traveling on official business of the organization are exempt from the state hotel occupancy tax. The organizations and their employees are required to pay the local taxes.

(d)

The United States Government paying the hotel directly is exempt from the state and local taxes. Examples of directly paying the hotel include, but are not limited to, using United States government purchase order, check or credit card which is issued directly to the agency, in only the agency's name. Effective September 1, 1995, United States government employees, including military personnel, traveling on official business must pay the state and local hotel occupancy taxes when paying the hotel from personal funds.

(1)

Effective September 1, 1995, state agencies, boards, commissions and institutions (except institutions of higher education) and their employees traveling on official business must pay the state and local hotel occupancy taxes. However, designated state employees issued a special hotel tax exemption photo ID or tax exempt card are exempt from the state, city and county hotel taxes. Individuals issued a hotel tax exemption card include, but are not limited to, judicial officials, heads of agencies and members of the Texas Legislature. State agencies may request a refund of the hotel tax paid.

(2)

Diplomatic personnel who present a tax exemption card issued by the United States Department of State are exempt from state, city and county hotel taxes.

(3)

City and county governments and their employees must pay the state and local taxes.

(4)

Military personnel, both federal and state, traveling on official military business, are exempt from state and local taxes. However, the exemption does not cover military personnel traveling on leave or between duty stations.

(e)

Hotels must provide proof of valid exemptions in case of an audit; otherwise, the exemptions claimed by the hotel/motel will be disallowed.

(f)

A room charged to a customer who did not show is subject to Hotel Occupancy Tax. The reason: the definition of occupancy and occupant includes not only the use or possession, but also the right to use or possess any room(s) for any purpose.

(1)

A deposit which is not directly related to the room charge would not be subject to hotel tax because the deposit does not give the customer the right to use or possess the room.

(g)

The hotel occupancy tax is due on the rental of meeting and banquet rooms if the room is located in the same building with the sleeping accommodations. However, the tax is not due on charges imposed on buildings owned by a hotel which are physically separate from the hotel and which are not used for the purpose of providing sleeping accommodations.

(Ord. of 2-6-73, § 2; Ord. No. 83-135, § 1, 12-20-83; Ord. No. 98-113, § 1, 4-27-98)