Hotel Occupancy Taxes
Hotel Occupancy Taxes
Every person owning, operating, managing, or controlling any hotel or collecting payment for occupancy in any hotel shall collect the Hotel Occupancy Tax from their guests for the City of Plano.
A Hotel is any building or buildings in which the public may obtain sleeping accommodations for a cost of $2 or more each day for a consecutive duration of 30 days or less. This includes, without limitation, hotels, motels, tourist homes, vacation rentals by owner, houses or courts, lodging houses, inns, hostels, rooming houses, bed and breakfasts, short-term vacation rentals or other buildings where rooms are furnished for consideration. It does not include hospitals, sanitariums or nursing homes.
The revenue derived from the Hotel Occupancy Tax is used to promote tourism and the convention and hotel industry in Plano.
Hotel Motel Exempt Form Opens a New Window.
Hotel/Motel Occupancy Tax (new) Opens a New Window.
ARTICLE III. - HOTEL OCCUPANCY TAX Ordinance 2011 Opens a New Window.
Hotel/Motel Occupancy Tax Instructions Opens a New Window.
The City of Plano offers online payments for Hotel Occupancy Taxes. However, the City is charging service fees to offset the expense of offering this option. The service fees do not come to Plano; they go directly to the vendor furnishing the payment website. The service fees should not be added to or deducted from the tax form. It is a separate fee imposed for the use of the payment website. The service fee structure is as follows:
- Visa/MC/Disc Under $60 = $2.00
- Visa/MC/Disc Over $60.01 = 2.90%
- ACH/E-Check= $1.50
It is at the hotel’s discretion to pay online as the City still accepts checks by mail. If paying online, all tax forms and supporting documentation should be email to firstname.lastname@example.org prior to or at the time of payment.
The City of Plano’s Hotel Occupancy Tax rate is 7 percent. The City’s tax is in addition to the 6 percent rate imposed by the State of Texas, which must be remitted separately to the State. For information on the State Hotel Occupancy Tax, please visit their website or call 1-800-252-1385.
Every person required to collect the Hotel Occupancy Tax must file a Report of Hotel Occupancy Tax with the City of Plano Financial Services Department showing the consideration paid for all room occupancies in the preceding month, the amount of permanent (30-day) and other exemptions granted, and the amount of the tax collected on such occupancies. A payment in the amount of the tax collected must accompany this report. Reports and payments are due on the 30th day of the month following each monthly reporting period (for example, month ending March 31 is due April 30). A report is required even if no taxes are collected during the quarter.
If the due date falls on a weekend or holiday, the next business day is considered the due date. The valid U.S. Postal Service postmark date will be considered the payment date. In addition, because postmark dates may be controlled internally using mailing machines, the City’s Financial Services Department must receive your report within five business days from the postmark date, or the return will be considered delinquent.
On the first day after the due date of the report, a 15 percent penalty will be assessed on the tax due. The tax imposed by this by city ordinance that is not paid when it is due shall draw interest at a monthly rate of 1 percent from the due date. Certain state employees (judicial officials, heads of agencies and members of state boards and commissions) are exempt from paying local taxes.
Short Term Rental Hosts
Airbnb started collecting hotel occupancy tax for Plano effective May 1, 2019. The option for all other short term rental platforms to collect and remit local occupancy taxes on behalf of the host is not currently available. Hosts in the City of Plano will need to charge their guests a 7% occupancy tax and remit payment to the City of Plano following the same instructions for hotels mentioned above.