Municipal Occupancy Tax Reporting
Municipal Hotel Occupancy Tax Reporting
In the early 1970s, the Texas Legislature authorized certain local governments to begin collecting a hotel occupancy tax (HOT). Almost two decades later, the Legislature offered hotel occupancy taxing authority as one of several revenue options to support sports and community venues. The tax may be levied by a city, county or a partnership between the two.
In 2017, the 85th Legislature passed Senate Bill 1221 with the intent of increasing local government transparency while also allowing the public to better understand the state’s patchwork of municipal HOTs. To comply with Texas Tax Code Section 351.009, municipalities that impose certain HOTs must annually report their tax rates and revenue amounts, including the percentage of revenue allocated for specific uses, from the preceding fiscal year. In 2021, the 87th Legislature passed Senate Bill 1655, expanding this reporting requirement to include counties under Texas Tax Code Section 352.009.