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Footnotes:
--- (2) --- Editor's note— Ord. No. 2000-23, adopted Sept. 28, 2000, amended Art. III, Hotel occupancy tax, in its entirety; hence, former §§ 102-56—102-64, derived from the 1979 Code, § 11, as subsequently amended, have been replaced by §§ 1—14 of Ord. No. 2000-23, designated as §§ 102-56—102-69 herein.
State Law reference— Municipal hotel occupancy taxes, V.T.C.A., Tax Code ch. 351.
Sec. 102-56. - Definitions.#
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. Words used in the present tense include the future tense. Words used in the plural number include the singular, and words in the singular include the plural. The word "shall" is always mandatory. The word "herein" means in this article. The word "regulations" means the provisions of any applicable ordinance, rule, regulation or policy. The word "person" means any human being or legal entity and includes a corporation, a partnership, and an incorporated or unincorporated association. The words used or occupied, as applied to any room or building, shall be construed to include the words intended, arranged, or agreed to be used or occupied.
Consideration means the cost of a room, or the value given for the use of a room, that is ordinarily used for sleeping, and does not include 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.
ETJ means the extraterritorial jurisdiction of the city as established by state law and all extraterritorial jurisdiction as is otherwise established by the city and the landowners as authorized by state law.
Hotel means a building in which members of the public obtain sleeping accommodations for consideration. The term includes a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, rooming house, or bed and breakfast. The term does not include a hospital, sanitarium, nursing home, or a dormitory as defined in section 156.001, Texas Tax Code.
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 ordinarily used for sleeping and if the occupant's uses, possession, or right to use or possession extends for a period of less than 30 consecutive calendar days.
Occupant means any person who, for consideration, uses, possesses, or has a right to use or possess, any room in a hotel if the room is one ordinarily used for sleeping.
Person means one or more human beings, individuals, corporations, partnerships, associations, labor organizations, legal representatives, mutual companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in cases under U.S.C.A. title 11, receivers, and fiduciaries.
Quarter or quarterly period means a quarter of the calendar year. The first quarter is composed of the months of January, February, and March; the second quarter is composed of the months of April, May, and June; the third quarter is composed of the months of July, August, and September; and the fourth quarter is composed of the months of October, November and December.
(Ord. No. 2000-23, § 1, 9-28-00)
Cross reference— Definitions generally, § 1-2.
State Law reference— Definitions, V.T.C.A., Tax Code § 351.001.
Sec. 102-57. - Imposition of tax.#
There is hereby levied a tax upon the cost of occupancy of sleeping rooms in hotels, located within the city or within the city's extraterritorial jurisdiction ("ETJ"), for which the occupancy cost of the room is $2.00 or more per day. Such occupancy tax shall be seven percent of the consideration paid for such sleeping room. The tax shall not apply to a person who is a permanent resident of the sleeping room or who is otherwise exempt from paying the tax pursuant to chapter 156, Texas Tax Code.
(Ord. No. 2000-23, § 2, 9-28-00)
State Law reference— Tax rates, V.T.C.A., Tax Code § 351.003.
Sec. 102-58. - Collection of tax.#
Every person owning, operating, managing or controlling any hotel within the city or its ETJ shall collect the tax imposed and provided in this article.
(Ord. No. 2000-23, § 3, 9-28-00)
Sec. 102-59. - Records and reporting of receipts.#
Every person owning, operating, managing or controlling any hotel within the city or its ETJ shall: (1)
Keep and maintain for such hotel good, adequate and accurate records for the hotel, sufficient to show and establish the consideration paid to and received by the hotel, the true and correct amount of taxes due and payable by the hotel pursuant to this article, and the applicable exemptions if any (the "records");
(2)
Keep and maintain the records for each calendar year, organized by calendar year, for a period of five years after the end of each such calendar year; and
(3)
On or before the last day of the month following each quarter, every person required to collect the tax imposed by this article shall file a report with the city secretary showing the consideration paid for all sleeping rooms during the preceding quarter and the amount of tax collected on such occupancies and sleeping rooms.
(Ord. No. 2000-23, § 4, 9-28-00)
Sec. 102-60. - Payment of tax.#
On or before the last day of the month following each quarter, every person required to collect the tax imposed by this article shall pay the tax due to the city for the preceding quarterly period. If the occupancy of any sleeping room is by state law exempt from the tax established pursuant to section 102-57, it shall be the responsibility of the person required to collect the tax to document and provide records establishing the exemption.
(Ord. No. 2000-23, § 5, 9-28-00)
Sec. 102-61. - Assessment for late report or payment.#
Every person who shall fail to file a report as required herein or who shall fail to pay the tax as imposed herein when said report or payment is due, shall forfeit an additional amount equal to five percent of the amount due as a penalty. In the event any past due tax is not paid within 30 days after the due date, the person shall forfeit an additional amount equal to five percent of such tax as an additional penalty.
(Ord. No. 2000-23, § 6, 9-28-00)
Sec. 102-62. - Interest on taxes due and unpaid.#
Taxes remaining due and unpaid from and after the last day of the calendar month following the quarter for which such taxes are due and payable shall draw interest at the maximum rate allowable by law beginning 60 days from the last day of the quarterly period for which such taxes are payable.
(Ord. No. 2000-23, § 7, 9-28-00; Ord. No. 2007-20, § 2, 9-25-07)
Sec. 102-63. - Attorney fees and costs.#
If the matter of a report not being filed, or taxes not being paid, when due, is forwarded to the city attorney for action, an amount equal to 15 percent of the taxes, penalties and interest finally determined to be owing and payable shall be added to such amount as attorney fees and costs of collection. In the event that any action is required to be filed in any state court to obtain the required report or to collect delinquent taxes, the person(s) responsible for collecting the taxes and filing the report shall be liable to the city for its reasonable attorney fees and costs, provided that such attorney fees shall in no event be less than 15 percent of the total amount of taxes, penalties and interest due and payable.
(Ord. No. 2000-23, § 8, 9-28-00)
Sec. 102-64. - Collection of delinquent taxes.#
The city manager is authorized to notify the city attorney as to any hotel occupancy tax for which a report is not timely filed, or for which the tax is not timely paid, as required by this article. Upon the city administrator referring the delinquent report or delinquent tax to the city attorney, an additional amount equal to 15 percent of the taxes, penalties and interest due shall be added to the amount due and payable. Upon the receipt of such notification from the city administrator, the city attorney: (1)
Is directed to promptly give written notice to the person owning, operating, managing or controlling the hotel for which such report has not been received, or for which the taxes have not been paid, demanding the report be promptly filed and that the taxes be promptly paid, as applicable;
(2)
Is directed to pursue the demand for performance and compliance with this article, including the payment and collection of all applicable penalties, interest, late charges, attorney fees and charges; and
(3)
In the event the report is not filed or, as applicable, all amounts due and payable are not paid, within 30 days after the date of the demand by the city attorney, the city attorney is authorized and directed to file suit to:
a.
Obtain the filing of any report required by this article;
b.
Obtain the payment of all taxes, penalties, interest and fees due and payable pursuant to this article;
c.
Obtain an injunction prohibiting the continued operation of the hotel for which the report has not been filed, or for which the taxes have not been paid; and
d.
To obtain such other and further relief that may be available at law or in equity.
(Ord. No. 2000-23, § 9, 9-28-00)
Sec. 102-65. - Audits.#
The state has authority to audit any hotel for compliance with the Tex. Tax Code, and the city shall have the authority to audit any hotel for the purpose of determining, verifying and requiring compliance by such hotel with the requirements of this article. The city manager is authorized to request the comptroller of public accounts, or any other appropriate state agency, to audit any hotel, and the city may audit the records of any hotel, or cause such records to be audited by the city, to determine and verify the taxes payable, paid and owed by such hotel pursuant to this article. If a city audit finds the hotel has underpaid taxes imposed by this article the hotel shall promptly pay the additional taxes due plus the penalties and interest thereon as provided in this article. If the city council finds from the city audit and any other evidence that the hotel underpaid by more than 15 percent the taxes due for any calendar year, or that the hotel has failed in a material respect to maintain the records, then, in that event, the hotel shall pay to the city the reasonable cost and expense incurred by the city for the audit.
(Ord. No. 2000-23, § 10, 9-28-00)
Sec. 102-66. - Deposits and uses.#
Subject to the legislative discretion of the city council a percentage of all hotel occupancy taxes received by the city may be deposited into an escrow account to be held and maintained by the city. The funds and balances of the escrow account shall be managed and invested in compliance with the city's investment policy and all earnings of such escrow account shall be deposited in and remain in such account. The escrow account shall be reserved, held and increased for any purpose allowed by chapter 351, subchapter B. Texas Tax Code, as amended.
(Ord. No. 2000-23, § 11, 9-28-00)
Sec. 102-67. - Books and accounts.#
The city shall maintain books and accounts that accurately identify the receipt and expenditure of all revenue derived from the tax imposed by this article.
(Ord. No. 2000-23, § 12, 9-28-00)
Sec. 102-68. - Uses of funds.#
Subject to the exercise of legislative discretion and appropriations by the city council, the hotel occupancy tax receipts may be set aside, budgeted and appropriated for use and expenditure by the city for the purposes authorized by chapter 351, subchapter B, Texas Tax Code, as amended.
(Ord. No. 2000-23, § 13, 9-28-00)
State Law reference— Use of tax revenue, V.T.C.A., Tax Code, § 351-101 et seq.
Sec. 102-69. - Criminal penalty.#
Each person required by this article to collect the tax imposed herein, to pay the tax to the city, to make reports as required herein, or to maintain the records, who fails to collect the tax, pay the tax, file the report, or maintain the records, shall be deemed guilty of a misdemeanor, and upon conviction, shall be punished by a fine not to exceed $500.00 for each offense. The failure to collect the tax, to file the required report, and to pay the tax collected prior to such payment becoming past due, and the failure to maintain the records, shall each constitute and be a separate offense punishable by fine. Each day the violation exists shall constitute a separate offense. Such penalty shall be in addition to all other remedies provided herein.
(Ord. No. 2000-23, § 14, 9-28-00; Ord. No. 2007-20, § 3, 9-25-07)