Who does not have to pay state and local hotel taxes?

The following organizations and individuals do not have to pay hotel tax:

  • The U.S. government and its employees traveling on official business
  • Foreign diplomats issued a tax exemption card by the U.S. Department of State, unless the card specifically excludes hotel tax
  • Certain Texas state officials with special hotel tax exemption cards (includes heads of state agencies, members of state boards and commissions, judicial officials at the district court level and above, state legislators, and legislative employees)
  • Permanent residents, that is, guests who occupy a room for at least 30 consecutive days; any interruption in the term of occupancy will void the exemption (guests who stay 30 or more days and notify the hotel in writing of their intention beforehand are exempt from the day of notification, while guests who do not notify the hotel must pay the tax the first 30 days and are exempt thereafter)
  • Some nonprofit entities and their employees traveling on official business; the entity must have received a hotel tax exemption letter from the Comptroller's office and the reason for the exemption must be written on the exemption certificate, for example, "exempt per Electric Cooperative Act, Utilities Code, Chapter 161" or "exempt per Telephone Cooperative Act, Utilities Code, Chapter 162."

Show All Answers

1. What is considered a hotel under the Hotel Tax?
2. Who has to collect hotel taxes?
3. What is the hotel tax rate?
4. What government agency handles hotel taxes?
5. Is there hotel tax on meeting or banquet rooms?
6. Who does not have to pay state and local hotel taxes?
7. Why do some hotels collect tax after a permanent resident gives written notice?
8. Are Texas state agencies and their employees exempt from hotel taxes?
9. Are local government agencies and their employees exempt from hotel taxes?
10. How does a hotel guest claim a hotel tax exemption?
11. What do hotels need to verify a hotel tax exemption?