Hotel Occupancy Tax Collections Instructions

City of Terrell Hotel Occupancy Tax Collections Reporting Instructions

Ordinance Number 2715 (PDF) provides for the monthly collection and reporting of a hotel occupancy tax;

Section 351.001, V.A.T.S., Municipal Hotel Occupancy Texas, sets forth the authority of the municipality to levy by ordinance a hotel occupancy tax upon the cost of occupancy of any room or other hotel facility used for sleeping, within the corporate limits of said City where the charge for the room is $2 or more per day; and

The Terrell City Council has determined that it is in the best interest of the City of Terrell for the Hotel Occupancy Taxes to be assessed, reported and paid monthly.

Definitions

The following words, terms and phrases are defined as follows:

Hotel: Any building or buildings in which the public may, for a consideration, obtain sleeping accommodations, including hotels, motels, tourist homes, houses or courts, lodging houses, inns, rooming houses, 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.
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.
Occupant: Anyone who, for a consideration, uses, possesses, or has a right to use or possess any room or rooms in a hotel under any lease, concession, permit, right of access, license, contract or agreement.
Person: Any individual, company, corporation or association owning, operating, managing or controlling any hotel.
Monthly period: The regular calendar months of the year.

Tax Levied; Amount; Exemptions

The City of Terrell has levied a tax of seven % (7%) of the price paid for a room in a hotel on every person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use of possession or for the right to the use or possession of a room that is in a hotel, costs $2 or more each day, and is ordinarily used for sleeping. The price of a room in a hotel does not include the cost of food served by the hotel and the cost of personal services performed by the hotel for the person except those services related to the cleaning and readying of the room for possession.

Exceptions

Not tax shall be imposed for federal or state employees traveling on official business.
No tax shall be imposed for diplomatic personnel who present a Tax Exemption card issued by the United States Department of State.
No tax shall be imposed for federal or state military personnel traveling on official military business. This exemption does not cover military staff on leave or between stations.

Collection of Tax

Every person owning, operating, managing or controlling any hotel shall collect the tax levied by this Ordinance for the City of Terrell.

Monthly Reports are required to be sent to the City Secretary.

By the twentieth (20th) day of the month, every person required to collect the tax imposed shall file a report with the City Secretary of the City of Terrell at P.O. Box 310, Terrell, Texas 75160 showing the price paid for all room occupancies in the preceding month, the amount of the tax collected on such occupancies, and any other information the City Secretary may reasonably require. All taxes are due at the time of filing such report.

Additional Reporting Requirements

The City Secretary shall have the authority to request and receive within a reasonable time documentation for information contained in the report to the City by the hotel. The hotel operator shall also furnish a copy of the quarterly tax report filed by the hotel for the State Comptroller regarding the State Hotel Occupancy Tax.

Rules and Regulations of the City Secretary; Access to Books and Records

The City Secretary 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/her to determine the correctness of any report filed as required by Ordinance, and the amount of taxes due under the provisions of this Ordinance.

Penalties

If any person shall fail to file a tax report as required herein or shall file a false report or fail to pay the tax when due to the City, said person is liable to the City for its reasonable attorney's fees and a penalty equal to fifteen % (15%) of the total amount of the tax owed. Delinquent taxes shall draw interest at the rate of ten % (10%) per annum beginning sixty (60) days from the due date.

Any person violating any of the provisions of the Ordinance, including hotel operators who fail to collect the tax, fail to file a return, file a false return, or who are delinquent in their tax payment, shall be guilty of a misdemeanor and shall, upon conviction, be fined in any sum not to exceed Five Hundred and No/100 ($500) Dollars, and each twenty-four (24) hours of any such violation shall constitute a separate offense.

Additional Penalties

The City is hereby authorized to take the following actions against any person required to collect the tax imposed hereby and pay the collection over to the City and who has failed to file a report, or filed a false report, or failed to pay the tax when due:

Bring suit against the hotel for noncompliance; and/or
Bring suit against the hotel seeking any other remedies provided under Texas law.

Additional Authorization to bring Suit

The City Attorney is hereby authorized to bring suit against any person required to collect the tax imposed hereby and required to pay the collection over to the City and who has failed to file a report, or filed a false report, or failed to pay the tax when due. Such suit may seek to collect such tax not paid or to enjoin such person from operating a hotel in the City until the tax is paid or the report is filed or both, as applicable and as provided in the injunction.