Tool #2: Collecting and reporting HOT funds

The local Hotel Occupancy Tax (HOT) is added to the room rate and paid by the overnight guest. The hotel or overnight accommodation is required to remit the HOT it collects directly to the municipality on a quarterly and in some cities on a monthly basis. Every city has policies and procedures as to how the taxes are remitted. Below, you’ll find sample reporting information from three different municipalities as to how they collect HOT. 

As mentioned in Tool #1, with the passage of Senate Bill 1221 in the 85th Texas legislative session, municipalities that impose municipal HOT are required by the State Tax Code to report annually on the HOT rate levied and the revenues collected using a submission form on the Texas Comptroller’s website. For details on this process, you’ll find relevant links to the Texas Comptroller’s site below.