Tool #3: Identifying who controls your local HOT fund
In each community, the rate of HOT tax to be collected and the means for distributing the collected dollars is determined by “local control,” meaning that your local elected officials have the authority to make these decisions. As a result, everything from the amount collected to the application and distribution process will vary from municipality to municipality.
Do your research and identify how your city or town manages HOT:
Go to your municipality’s website and search for “Hotel Occupancy Tax” or call the main municipal phone number and ask to speak with someone about the municipal Hotel Occupancy Tax.
In many cases, the local elected authority appoints a “delegated authority” to distribute the funds. This delegated authority can be a municipal agency or department OR it can be an outside entity such as an IRS 501(c)(3) nonprofit corporation. You’re going to want to make sure you’re talking to the right people. Depending on the size of your community, that might be someone in the City Finance Department, City Manager’s office, City Convention & Visitors Bureau or Tourism Office, City Parks Department, or other municipal agency OR it might be a non-municipal organization (e.g.; an independent Convention & Visitors Bureau with its own board and a contract with the City to administer the local HOT funds).
Examples of delegated authorities that are municipal departments, divisions or agencies: In larger cities, there is often a special department that administers the arts related funds that are allocated from the hotel occupancy tax. Such cities may have a Cultural Arts Division within the Economic Development Department (Austin), Museum and Cultural Affairs Department (El Paso), Department of Arts & Culture (San Antonio).
Examples of delegated arts authorities that are independent organizations: Houston Arts Alliance (Houston), Civic Lubbock (Lubbock), Arts Council of Midland (Midland), Odessa Arts (Odessa).
Links to each of these delegated authorities can be found below:
