Who must collect Hotel Occupancy Taxes?
Every person owning, operating, managing, or controlling any hotel or collecting payment for occupancy in any hotel shall collect the Hotel Occupancy Tax from their guests for the City.
Hotel: Any building or buildings in which the public may, for consideration, obtain sleeping accommodations, including, without limitation: hotels, motels, tourist homes, houses or courts, lodging houses, inns, hostels, rooming houses, short term vacation rentals or other buildings where rooms are furnished for a consideration, but not including: hospitals, sanitariums, or nursing homes.
Consideration: The cost of the room in a hotel only if the room is ordinarily used for sleeping, and not including 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. The room must cost $2 or more each day for the tax to apply. The tax does not apply to charges for meeting rooms or banquet rooms.
Occupancy: The use or possession, or the right to the use or possession, of any room or rooms in a hotel if the room is one which is ordinarily used for sleeping and if the occupant is other than a permanent resident.
Permanent Resident: A permanent resident is defined as any occupant who has or shall have the right to occupancy of any room or rooms in a hotel for at least 30 consecutive days during the calendar year or preceding year. Permanent residents do not have to pay
the Hotel Occupancy Tax. In order for the first 30 days of the stay to be exempt from hotel taxes, the hotel must receive written intent that the resident plans to stay at least 30 days. Without written intent, the tax must be collected and remitted to the City and State for the first 30 days of the stay.
What is the City of Austin’s Hotel Occupancy Tax rate?
The City of Austin’s Hotel Occupancy Tax rate is 9 percent. The City Council imposed a 7 percent tax rate under Ordinance No. 900830-L approved on Aug. 30, 1990. An additional tax of 2 percent for venue projects was imposed on Aug. 1, 1998 under Ordinance No. 980709-G. These ordinances have been codified in Austin City Code; Title 11. Taxation; Chapter 11-2. Hotel Occupancy Tax through City Ordinance No. 031204-10, Dec. 4, 2003 and City Ordinance No. 031211-11, Dec. 11, 2003.
Texas law requires that each bill or other receipt for a hotel charge subject to the tax imposed for a venue project contain a statement in a conspicuous location stating: “The City of Austin requires that an additional tax of two percent (2%) be imposed on each hotel charge for the purpose of financing a venue project.”
What is the State’s Hotel Occupancy Tax rate?
As of September 1, 1987, the State’s tax rate is 6 percent. State Hotel Taxes should be remitted separately to the State of Texas. Please visit their website or call 1-800-252-1385.
When are the tax reports due?