Finance & Compliance

Hotel Occupancy Tax (H.O.T.)

Hotel Occupancy Tax supports tourism-related activities and facilities that benefit visitors and strengthen the local hotel and convention industry.

🏢 Definition of a Hotel

Any business considered a hotel must charge state Hotel Occupancy Tax. Local Hotel Occupancy Tax is also required within jurisdictions that levy the tax.

This includes hotels, motels, tourist homes, tourist houses, tourist courts, lodging houses, inns, rooming houses, bed and breakfasts, and short-term rentals such as Airbnb and HomeAway.

View Texas Tax Code Chapter 156 →
🛏 When Local H.O.T. Applies

Local H.O.T. applies to rooms used for sleeping. It does not apply to food sales, meeting spaces, or banquet rooms when those charges are listed separately.

When a customer is billed a lump sum package, the entire amount may be subject to hotel tax.

If the bill separately states the room charge from other items, only the room charge is subject to hotel tax.

💰 Allowed Uses of H.O.T. Revenue
  • Convention centers and visitor information centers
  • Convention registration facilities, personnel, and materials
  • Tourism advertising and promotional programs
  • Arts promotion and support
  • Historic preservation and museum promotion
  • Tourist-related sporting events
  • Enhancement of sports facilities and fields
  • Coliseums and multiuse facilities
  • Signage to attractions visited by hotel guests
🛠 Additional Eligible Uses

Cities and counties may also pledge local H.O.T. revenue to pay for bonds used for eligible projects.

Local governments may contract project management services to manage H.O.T.-funded projects.

View TML Hotel Tax Guide →
🏃 Sports and Community Venues

Local H.O.T. may also be adopted for certain venue projects involving convention centers and related infrastructure.

Sports & Event Facilities
Arenas, coliseums, stadiums, and similar facilities used for sports, livestock shows, expos, promotional events, and civic or charitable events.
Convention & Cultural Facilities
Convention centers and related improvements such as civic center hotels, theaters, opera houses, music halls, rehearsal halls, parks, zoos, museums, aquariums, and plazas.
Other Eligible Projects
Watershed protection and preservation projects may also qualify under certain venue project provisions.
View Local Government Code Chapter 334 →
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  • Hotel Occupancy Tax Form
  • H.O.T. Fund Procedure
  • H.O.T. Funding Grant Application
  • H.O.T. Funding Use Agreement