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The following words, terms, and phrases, for the purpose of this article, except where the context clearly indicated another meaning, are respectively defined as follows:
Consideration.
The cost of a room in a hotel and does not include:
(1) 
The cost of any food served, or personal services rendered to the occupant not related to cleaning and readying the room or space for occupancy; or
(2) 
Any tax assessed by any other governmental agency for occupancy of the room.
Director.
The chief financial officer of the town or the designated representative.
Hotel.
Any 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:
(1) 
A hospital, sanitarium, or nursing home;
(2) 
A dormitory or other housing facility owned or leased and operated by an institution of higher education or a private or independent institution of higher education, as those terms are defined by the Texas Education Code, sec. 61.003, as amended, that is used by the institution for the purpose of providing sleeping accommodations for persons engaged in educational program or activity at the institution; or
(3) 
An oilfield portable unit, as defined by Texas Tax Code, section 152.001.
Occupancy.
The use or possession, or the right to the use or possession, of any room in a hotel. Further defined as room or rooms, sleeping space, bed or other facility in a hotel for any purpose.
Occupant.
Any person who, for a consideration, uses, possesses or has the right to use or possess any room in a hotel under any lease, concession, permit, right of access, license, contract or agreement.
Person.
Any individual, company, corporation or association owning, operating, managing, or controlling any hotel.
Quarterly period.
The regular calendar quarters of the year, the first quarter being composed of the months of January, February, and March; the second quarter being the months of April, May, and June; the third quarter being the months of July, August, and September; and the fourth quarter being the months of October, November, and December.
Short term rental (STR) business.
Any location where you provide sleeping accommodations for consideration. This includes the operation of VRBO, HomeAway, and Airbnb’s.
Tax.
The hotel occupancy tax levied in this section pursuant to chapter 351 of the Texas Tax Code, as amended.
Tourist.
An individual who travels from the individual’s residence to a different municipality, county, state, or country for pleasure, recreation, education, or culture.
Visitor information center.
A building, or a portion of a building used to distribute or disseminate information to tourists. The city visitor center is the designated visitor information center in the city.
(Ordinance 05-2021-01 adopted 5/18/21)
(a) 
A tax of seven percent (7.0%) of the consideration paid for a hotel room is levied, within the city limits and the extraterritorial jurisdiction of the city, on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays the consideration for the use or possession or for the right to the use or possession of a hotel room that costs two dollars ($2.00) or more each day and is ordinarily used for sleeping.
(b) 
This article does not impose a tax on:
(1) 
A person who has the right to use or possess a hotel room for at least thirty (30) consecutive days, so long as there is no interruption of payment for the period;
(2) 
A corporation or association organized and operated exclusively for religious, charitable, or educational purposes, no part of the net earnings of which insures to the benefit of any private shareholder or individual; or
(3) 
The United States, a governmental entity of the United States, or an officer or employee of the United States.
(c) 
Except as otherwise provided in section 156.103 of the Texas Tax Code, as amended, the state, or an agency, institution, board, or commission of the state other than an institution of higher education, as that term is defined by section 61.003 of the Texas Education Code, as amended, shall pay the tax imposed by this article and is entitled to a refund of the amount of tax paid.
(d) 
A person entitled to a refund of tax paid under this article shall make an application for a refund in the form prescribed by the city.
(Ordinance 05-2021-01 adopted 5/18/21)
(a) 
A person who owns, operates, manages, or controls a hotel and/or short-term rental (STR) or collects payment for the use or possession or for the right to the use or possession of a hotel room and/or STR shall collect the tax levied by this article for the city.
(b) 
A person who collects the tax shall deposit the tax proceeds into a separate liability account and may not use the tax proceeds for any purpose other than payment to the city.
(c) 
The hotel and/or short-term rental (STR) 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 further described in this article, this reimbursement may be forfeited at the discretion of the city if the hotel and/or short-term rental (STR) operator fails to timely pay over the tax or timely file a report as required by the city or files a false report with the city.
(Ordinance 05-2021-01 adopted 5/18/21)
(a) 
A person required to collect the tax imposed by this article shall pay the city secretary the tax collected during the preceding reporting period and at the time shall file with the city secretary a report showing the total amount of the payments made for all room occupancies in the preceding period, the amount of the tax collected on such occupancies in the preceding period, and any other information the city secretary or designee may reasonably require.
(b) 
The report shall be in a form prescribed by the city secretary or designee. The city secretary or designee is hereby authorized and directed to do all things necessary or convenient to carry out the terms of this article.
(c) 
The reporting period for such report and payment of taxes shall be the same as required by the comptroller, either monthly or quarterly, as set out in section 156.151, Texas Tax Code, as amended.
(Ordinance 05-2021-01 adopted 5/18/21)
(a) 
If a hotel owner sells a hotel, the purchaser or his assignee shall withhold an amount of the purchase price sufficient to pay the amount of tax due until the seller provides:
(1) 
A receipt issued by the city showing that the amount of tax due has been paid; or
(2) 
A certificate issued by the city showing that no tax is due.
(b) 
A purchaser of a hotel who fails to withhold the amount of the purchase price as required by this article is liable for the unpaid tax required to be withheld to the extent of the value of the purchase price.
(c) 
The purchaser of a hotel may file a written request with the city for the issuance of a certificate stating that no tax is due or for a statement of the amount required to be paid before a certificate may be issued. The city shall issue the certificate or statement not later than the 60th day after the date that the city receives the request.
(d) 
If the city fails to issue the certificate or statement within the period provided by subsection (c), the purchaser is released from the obligation to withhold the amount of tax from the purchase price or pay the amount of tax due.
(Ordinance 05-2021-01 adopted 5/18/21)
The city 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 the provisions of this article.
(Ordinance 05-2021-01 adopted 5/18/21)
(a) 
The revenue derived from the tax authorized by this article may be used only as provided by chapter 351 of the Texas Tax Code, as amended, to promote tourism and the convention and hotel industry as follows:
(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 and convention delegates or registrants to the city or its vicinity;
(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;
(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:
(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; and
(6) 
Expenses, including promotion expenses, directly related to a sporting event in which the majority of participants are tourists who substantially increase economic activity at hotels and motels within the city or its vicinity.
(b) 
Revenue derived from the tax shall only be expended to directly enhance and promote tourism and the city’s convention and hotel industry. Tax revenue may not be used as general revenue for general governmental operations of the city.
(Ordinance 05-2021-01 adopted 5/18/21)
(a) 
In addition to the tax imposed under this article, a person shall pay a penalty of five percent (5.0%) of the tax due if the person:
(1) 
Fails to file a report on or before the due date;
(2) 
Fails to pay the tax imposed on or before the due date;
(3) 
Files a report containing false information; or
(4) 
Fails to comply with section 11.04.005 when purchasing a hotel.
(b) 
A person who fails to pay any amount of the tax and penalty due under subsection (a) on or before the 30th day after the tax is due shall pay an additional five percent (5.0%) penalty on the unpaid tax. A delinquency penalty shall not be less than one dollar.
(c) 
Beginning on the 31st day after the due date, delinquent taxes shall draw interest at a rate of ten percent (10.0%) per annum.
(Ordinance 05-2021-01 adopted 5/18/21)
Any person, firm, or corporation violating any of the provisions or terms of this article shall be guilty of a misdemeanor and upon conviction, shall be fined a sum not to exceed $500.00 for each offense, and each and every violation or day such violation shall continue or exist, shall be deemed a separate offense and is punishable as provided in section 1.01.009 of this code.
(Ordinance 05-2021-01 adopted 5/18/21)
The city may take the following actions against a person who has failed to file a required report, failed to collect the tax imposed, failed to pay the taxes over to the city when due or filed a false report:
(1) 
Bring suit to collect the unpaid tax or to enjoin the person from operating a hotel in the city until the tax is paid or the report filed, as applicable, as provided by the court’s order; and
(2) 
Any other remedy provided under state law.
(Ordinance 05-2021-01 adopted 5/18/21)