Chapter 90. Taxation

(a) Ad valorem taxes becoming delinquent on or after February 1 of a year but not later than May 1 of that year and that remain delinquent on July 1 of the year in which they become due shall incur an additional penalty of 20 percent of the taxes, penalties and interest due pursuant to V.T.C.A., Tax Code § 33.07 in order to defray the costs of collection.

(b) The tax collector is directed to deliver notices of delinquency and of the additional penalty imposed in subsection (a) to all property owners, where addresses are available, at least 30 days but not more than 60 days before July 1 of the year in which such taxes become delinquent.

(c) Ad valorem taxes becoming delinquent on or after June 1 of a year under V.T.C.A., Tax Code §§ 26.07(f), 26.15(e), 31.03, 31.031, 31.032, 31.04, 42.42 incur an additional penalty of 20 percent of the taxes, penalties and interest due pursuant to V.T.C.A., Tax Code § 33.08 in order to defray the costs of collection.

(d) The tax collector is directed to deliver notices of delinquency and of the additional penalty imposed in subsection (c) to all property owners, where addresses are available. The penalty is incurred on the first day of the first month that begins at least 21 days after the notice is sent.

(Code 1967, § 28½-2; Ord. No. 6970, § 1, 4-14-94; Ord. No. 8753, § 1, 11-11-99; Ord. No. 10,491, § 1, 11-20-06; Ord. No. 12,100, §§ 1, 2, 10-25-12)

(a) Disabled adults. An individual adult who is under a disability for purposes of payment of disability insurance benefits under federal old-age, survivors and disability insurance is entitled to an exemption from taxation of $120,000.00 of the assessed value of his residence homestead administered pursuant to V.T.C.A., Tax Code § 11.13. Joint or community owners may not each receive the same exemption provided by or pursuant to this subsection for the same residence homestead in the same year.

(b) Adults 65 years or older. An individual adult who is 65 years or older is entitled to an exemption from taxation of $120,000.00 of the assessed value of his residence homestead administered pursuant to V.T.C.A., Tax Code § 11.13. Joint or community owners may not each receive the same exemption provided by or pursuant to this subsection for the same residence homestead in the same year.

(c) Homestead. Twenty percent of the market value of the residence homestead of a married or unmarried adult, including one living alone, is entitled to an exemption from taxation. However, the amount of this exemption shall not be less than $5,000.00. Joint or community owners may not each receive the same exemption provided by or pursuant to this subsection for the same residence homestead in the same year.

(d) Limitation of tax on homesteads of disabled and elderly. A disabled individual or an individual 65 years of age or older is entitled to the limitation on the total amount of taxes that may be imposed by the city on such individual's residence homestead as prescribed by and in accordance with state constitution article VIII, section 1-b(h) and V.T.C.A., Tax Code, § 11.261.

(e) Qualified charitable organizations. A qualified charitable organization, as defined in V.T.C.A., Tax Code, § 11.184, is entitled to an exemption from taxation to the extent allowed in V.T.C.A., Tax Code, § 11.184.

(Code 1967, § 28½-1(a)—(c); Ord. No. 1299, § 1, 11-28-72; Ord. No. 1534, § 2, 1-24-74; Ord. No. 1670, §§ 1, 2, 9-26-74; Ord. No. 2082, §§ 1, 2, 9-23-76; Ord. No. 2142, §§ 1, 2, 12-21-76; Ord. No. 2545, § 2, 9-20-78; Ord. No. 2823, § 1, 2-14-80; Ord. No. 2824, § 1, 2-14-80; Ord. No. 3147, § 1, 5-14-81; Ord. No. 3148, § 1, 5-14-81; Ord. No. 3370, § 3, 4-22-82; Ord. No. 9347, § 1, 4-25-02; Ord. No. 9935, § 1, 11-11-04; Ord. No. 14,424, § 1, 6-25-20; Ord. No. 15,447, § 1, 5-25-23; Ord. No. 15,831, § 1, 6-13-24)

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Consideration means 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.

Hotel means any building in which members of the public may, for a consideration, obtain sleeping accommodations, including without limitation hotels, motels, tourist homes, tourist houses or courts, lodginghouses, inns, roominghouses or other buildings where rooms are furnished for a consideration, but not including hospitals, sanitariums or nursing homes.

Occupancy means the use or possession or the right to the use or possession of any room in a hotel if the room is one which is ordinarily used for sleeping and if the occupant is other than a permanent resident as defined in this section.

Occupant means any person who, for a consideration, uses, possesses or has a right to use or possess any room in a hotel under any lease, concession, permit, right of access, license, contract or agreement, other than a permanent resident as defined in this section.

Permanent resident means any occupant who has the right to use or possess a room in a hotel for at least 30 consecutive days, so long as there is no interruption of payment for the period.

Person means any individual company, corporation or association owning, operating, managing or controlling any hotel.

Quarterly period means the regular calendar quarters of the year, the first quarter being composed of the months of October, November and December; the second quarter being the months of January, February and March, and third quarter being the months of April, May and June; and the fourth quarter being the months of July, August and September.

Tax collector means the city tax collector.

(Code 1967, § 28½-5(a); Ord. No. 7096, § 1, 9-22-94)

The tax collector shall have the power to make such rules and regulations as are reasonable and necessary to effectively collect the tax levied by this article and shall upon reasonable notice have access to books and records necessary to enable him to determine the correctness of any report filed as required by this article and the amount of taxes due under this article.

(Code 1967, § 28½-5(e); Ord. No. 7096, § 1, 9-22-94)

(a) If any person shall fail to file a report as required in this article or if any person shall file a false report or shall fail to pay to the city the tax as imposed in this article when the report or payment is due, he shall pay, in addition to the amount otherwise required to be paid under this article, an additional sum equal to five percent of the amount due as penalty, and after the first 30 days he shall pay an additional five percent of such tax. However, such penalty shall never be less than $1.00. Delinquent taxes shall draw interest at the rate of 12 percent per annum beginning 60 days from the due date.

(b) Any person violating any of the sections of this article, including persons who fail to collect the tax, fail to file a return, file a false return or who are delinquent in their tax payment, shall upon conviction be punished as provided in section 1-14.

(c) The city is authorized to take the following actions against any person required to collect the tax imposed by this article and pay the collection over to the city and who has failed to file a report or who has filed a false report or who has failed to pay the tax when due:

(1) Require the forfeiture of any revenue the city allowed the hotel operator to retain for its cost of collecting the tax;

(2) Bring suit against the person for noncompliance to collect the tax not paid; and/or

(3) Any other remedy provided by law.

(d) The penalties provided for in this section are in addition to other remedies and/or actions for collection available to the city by law.

(Code 1967, § 28½-5(g); Ord. No. 7096, § 1, 9-22-94)

The city attorney is authorized to bring suit to collect the tax not paid against any person who is required to collect the tax imposed by this article and who is required to pay the collections over to the city and who has failed to file a tax report or who has filed a false report or who has failed to pay the tax when due. Such suit may seek to collect the 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, as applicable and as provided in the injunction.

(Code 1967, § 28½-5(h); Ord. No. 7096, § 1, 9-22-94)

(a) Levied. There is levied a tax of seven percent on the consideration paid for a room in a hotel on every occupant who, under a lease, concession, permit, right of access, license, contract or agreement, pays for the use or possession or for the right to the use or possession of a room that is in a hotel, that costs $2.00 or more each day and that is ordinarily used for sleeping.

(b) Exceptions. Subject to this section, no tax shall be imposed under this section:

(1) Upon a permanent resident; or

(2) On the United States or a governmental entity thereof.

(3) On an officer or employee of a state governmental entity described in subsection (c)(1) of this section for whom a special provision or exemption to the general rate of reimbursement under the General Appropriations Act applies and who is provided with photo identification verifying the identity and exempt status of the person when such person is traveling on or otherwise engaged in the course of official duties for the governmental entity.

(4) On an officer or employee of a governmental entity of the United States who is provided with photo identification verifying the identity and exempt status of the person when traveling on or otherwise engaged in the course of official duties for the governmental entity if the governmental entity directly pays to the hotel the price for the room.

(5) For diplomatic personnel who present a tax exemption card issued by the United States Department of State.

(c) Refund. Except as otherwise provided in subsection (b), a tax imposed on the following persons or entities shall be paid, but each governmental entity herein described shall be entitled to a refund in accordance with subsection (d):

(1) The state or an agency, institution, board or commission of the state other than an institution of higher education, as defined in V.T.C.A., Education Code § 61.003.

(2) An officer or employee of a state governmental entity described in subsection (c)(1) who is entitled to reimbursement for the cost of lodging and for whom a special provision or exception to the general rate of reimbursement under the General Appropriations Act is not applicable when such person is traveling on or otherwise engaged in the course of official duties for the governmental entity.

(d) Refund procedure.

(1) A governmental entity that is entitled under subsection (c) to a refund of taxes paid under this division must file a refund claim with the treasurer.

(2) The claim must be filed on a form provided by the treasurer, which shall be substantially similar to that prescribed by the state comptroller, and shall be submitted along with all documentation required by treasurer, which information shall include, but not be limited to,

a. A copy of the hotel folio, billing statement, invoice, or other document, that contains the following information:

1. Name of the hotel;

2. Location address of hotel;

3. Name of city where hotel is located;

4. Name of county where hotel is located;

5. Date(s) of lodging;

6. Amount of municipal hotel tax paid;

7. Method of payment (travel voucher reimbursement, state credit card, state purchase order, direct billing, other); and

8. Name of employee, if tax reimbursed on travel voucher; and

b. Additional documentation as may be required by the treasurer to ensure a proper refund is processed.

(3) A claim for a refund may be filed only for each calendar quarter for all reimbursements accrued during that quarter.

(4) A state agency may apply for a refund of state hotel tax no later than two years after the end of the fiscal year in which the travel occurred.

(Code 1967, § 28½-5(b); Ord. No. 7096, § 1, 9-22-94; Ord. No. 8668, § 1, 8-26-99)

(a) Every person owning, operating, managing or controlling any hotel or collecting payment for occupancy in any hotel shall collect the tax levied by this article for the city.

(b) The hotel operator shall be entitled to one percent of the hotel occupancy tax revenues collected as reimbursement for the operator's administrative costs for collecting the tax. However, as provided in subsection (c) of this section, this reimbursement may be forfeited at the discretion of the city if the hotel operator fails to timely pay over the tax or fails to timely file a report as required by the city or if the operator files a false report with the city.

(c) Collection procedures on the purchase of a hotel shall be as follows:

(1) If a person who is liable for the payment of a tax under this article is the owner of a hotel and sells the hotel, the successor to the seller or the seller's assignee shall withhold an amount of the purchase price sufficient to pay the amount of tax due until the seller provides a receipt issued by the tax collector showing that the amount has been paid or a certificate issued by the tax collector showing that no tax is due.

(2) The purchaser of a hotel who fails to withhold an amount of the purchase price as required by this article is liable for the amount of tax required to be withheld to the extent of the value of the purchase price.

(3) The purchaser of a hotel may file a written request with the tax collector for the issuance of a certificate stating that no tax is due or for the issuance of a statement of the amount required to be paid before a certificate may be issued. The tax collector shall issue the certificate or statement not later than the 60th day after the date that the tax collector receives the request.

(4) If the tax collector fails to issue the certificate or statement within the period provided by subsection (c)(3) of this section, the purchaser is released from the obligation to withhold the tax on the purchase price or pay the amount of tax due.

(Code 1967, § 28½-5(c); Ord. No. 7096, § 1, 9-22-94)

(a) On the last day of the month following each quarterly period, every person required to collect the tax imposed by this article pursuant to subsection 90-61(a) shall file a report with the tax collector showing the consideration paid for all room occupancies in the preceding quarter, the amount of the tax collected on such occupancies, the amount of permanent and regular exemptions granted and any other information the tax collector may reasonably require. A copy of the concurrent quarterly Texas Hotel and Motel Tax Report filed with the state by the hotel shall be attached to the quarterly report along with the names, addresses and identification relied upon for the granting of exemptions to the collection of the tax levied. The tax due on such occupancies shall be paid at the time of filing the quarterly report. The report shall be in a form prescribed by the tax collector. The tax collector is authorized and directed to do all such things necessary or convenient to carry out the terms of this article. The tax collector shall have the authority to request and receive, within a reasonable time, additional documentation verifying the information contained in the report to the city by the hotel. Such verifying information and documents shall be retained in a retrievable format and shall be maintained for a period of not less than four years.

(b) All hotels collecting taxes under this article shall hold such monies in a separate liability account and may not use such monies for any purpose other than payment to the city as provided in this article.

(Code 1967, § 28½-5(d); Ord. No. 7096, § 1, 9-22-94)

(a) The revenue derived from the hotel occupancy tax imposed and levied by this article may be used only to promote tourism and the convention and hotel industry, according to the following limitations:

(1) The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation and maintenance of convention center facilities or visitor information centers or both;

(2) The furnishing of facilities, personnel and materials for the registration of convention delegates or registrants;

(3) Advertising and conducting solicitations and promotional programs to attract tourists, delegates or registrants;

(4) The encouragement, promotion, improvement and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording and other arts related to the presentation, performance, execution and exhibition of these major art forms; and

(5) Historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums which are:

a. At or in the immediate vicinity of convention center facilities or visitor information centers; or

b. Located elsewhere in the city or its vicinity that would be frequented by tourists and convention delegates.

(b) Revenue derived from the hotel occupancy tax shall be expended only in a manner that directly enhances and promotes tourism and the convention and hotel industry as delineated in this section. Such revenue shall not be used for the general revenue purposes or general governmental operations of the city.

(c) The provisions of V.T.C.A., Tax Code § 351.101 shall govern the use of tax revenues for promotion of tourism as applicable in this section.

(Code 1967, § 28½-5(f); Ord. No. 7096, § 1, 9-22-94)