Tool #1: Does your municipality distribute HOT for the arts?
First things first, you’ll want to confirm whether your city or town is distributing HOT for the arts.
With the passage of Senate Bill 1221 (SB1221) in the 85th Texas legislative session, municipalities that impose the municipal HOT must annually report their tax rates and revenue amounts to the Texas Comptroller, including the percentage of revenue allocated for specific uses—including the arts—from the preceding year. You can find all of the reported data on the Texas Comptroller’s website (see resources below).
To cut to the (arts) chase, we’ve created a spreadsheet (see resources below) listing just the municipal HOT for the arts from the municipalities that reported over the three years since the passage of SB1221—2017, 2018, and 2019. Unfortunately, a large number of Texas cities that levy a local hotel occupancy tax do not submit this required report to the State Comptroller. Accordingly, you will still want to check with the city and county in your area to confirm their current local HOT practices.
If you have questions about what you find in the data or if your city hasn’t reported its data, you can take your sleuthing a step further:
Contact your municipal leadership directly. Try the Finance Department or Economic Development Department, or go straight to your City Manager or Mayor and Council to request the information. You might remind them politely that if they have not reported the HOT data, they need to do so by the end of February of every year on the form on the Texas Comptroller’s website (see resources below); or…
Make a “Request for Public Information.” Every municipal website should have an online tool to request public information. Your municipality will have two weeks to provide the information or to note the date on which this information will be available. In this regard, you’ll want to request:
The municipal Hotel Occupancy Tax rate.
Gross amounts collected annually through the municipal HOT.
Amount spent in each of the nine allowable uses.
(Note: the nine allowable uses are 1) convention centers, 2) materials for convention registration and delegates, 3) advertising and promotion to attract tourists and conventioneers, 4) (promotion of) the arts, 5) historical preservation and restoration, 6-8) these pertain to sports facilities and multi-use facilities, and 9) signage to attract tourists.)
If you discover that your municipality is not currently distributing HOT for the arts, we suggest setting a meeting with your local municipal leaders to learn more.
Some questions to ask:
What have been the obstacles historically to providing local HOT funding for the arts?
What are the HOT funds currently being used for?
If they are tied up with convention center obligations (in some communities, HOT resources are primarily tied up with convention center construction, maintenance, and/or debt), when are the HOT funds that are dedicated to convention center dead obligations expected to be satisfied?
If you find yourself hitting a dead end here—maybe your local leader is not interested in discussing funding for the arts or maybe municipal resources are stretched thin and such a use is currently this is a lower priority for the city out of seeming necessity—head to Tools #9 and #10 for guidance on strategic planning and advocating for HOT funding of the arts.
If your municipality is currently distributing HOT for the arts, learn as much as you can about the process.
Some questions to ask:
Is there a hotel occupancy tax ordinance and ?
Is there an Arts Commission?
What are the municipality’s specific requirements and criteria?
How can new organizations or individuals become eligible?
Do you have to be a nonprofit organization or can you be an individual artist or for profit entity?
Toolkit Tip:
If you are in a community that does not yet distribute HOT for the arts, contact Texans for the Arts Foundation. We’ll provide guidance on where to start, including introducing you to other arts leaders who have been in your shoes. You can also join one of our Regional Conversations to meet and talk with colleagues in your area who have navigated HOT. Ask questions, listen to their stories, and commiserate. You aren’t in this alone—we'll help you connect with the larger arts community in Texas for advice and counsel. And, one day down the road, you can do the same for a newbie.
