NOTE: An organization or individual claiming an exemption from the payment of hotel occupancy tax must furnish the hotel with a signed Hotel Occupancy Tax Exemption Certificate at the time of registration. Who is exempt from the hotel occupancy tax? Home Who is exempt from the hotel occupancy tax? Who is exempt? City exemption State exemption State of Texas agencies, institutions, boards and commissions and their employees, traveling on official business, except for state college and university personnel and state military personnel State agencies, institutions, boards and commissions and their employees must pay the local hotel occupancy tax to the hotel and then apply to the City of Austin Financial Services Department for reimbursement.
This exemption ensures that hotel guests staying over 30 days are taxed the same as residents staying at extended-stay properties, apartments, corporate rental facilities, and rental houses.
The Texas Legislature continues to recognize the importance of this principle, and provides for permanent resident exemptions from both state and local hotel occupancy taxes for guests, regardless of the type of accommodation the guest selects. Therefore, one should look to whether the same person or corporate entity or business paid for the room for that entire period. A written reservation or confirmation of a reservation that indicates the stay will be more than 30 days is also sufficient notice.
In addition, a hotel is permitted to honor the day permanent resident exemption even in cities with a day check out requirement if the guest immediately checks back in so that the stay remains continuous to meet state law requirements. This protects the hotel from incurring tax liability should the guest check out before staying at least 30 days. An exception would be possible if the guest paid in advance for the entire 30 days and there was no allowance for a refund if the guests checks out early.
In this situation, the guest would not be tax exempt for the days this room was occupied prior to notifying the property of her intent to stay 30 days or more. The guest will likely become tax-exempt beginning the day notification was given to the hotel, although the hotel should continue to collect hotel occupancy tax for the next 30 days. Thirty-one days after the guest notifies the hotel that the guest intends to stay 30 days or longer, the hotel should refund the collected tax from the date the guest provided notice to present.
The Texas Tax Code requires uninterrupted payment for thirty consecutive days for an individual or company to qualify for the permanent resident exemption. If the guest fails to make payment or checks out prior to completing a day stay, they would not qualify for the permanent resident exemption.
Note, however, that permanent residents are not required to physically occupy a hotel room. The guest can leave the room for extended periods of time, provided the guest is still paying for the room and the guest still has the right to occupy the room.
If a company pays for the rental of a hotel room then the company is eligible for a permanent resident exemption. The company may allow different employees to occupy the room, provided the company meets the requirements of the exemption—renting the room for at least 30 consecutive days with no interruption of payment.
The company renting the room qualifies for the hotel occupancy tax exemption—not the individual who is occupying the room. The right to the exemption is not impacted by different individuals checking in and out of the room, or individuals switching which room they occupy, as long as the company paying for the room pays for an uninterrupted day period and the payment is from one source for the entire time period.
To be eligible for the permanent resident exemption, the same form of payment must be used for the entire stay from the same entity. Employees and representatives of nonprofit religious, charitable, or educational organizations are exempt from the state hotel tax when traveling on official business of the organization. They must, however, pay local hotel taxes. Employees of qualifying nonprofit organizations are exempt when traveling on official business and can pay for their accommodations with personal funds.
Representatives claiming an exemption who are not employees must pay with the organization's funds check, credit card or direct billing to obtain the exemption. When traveling on official business, employees of specific nonprofit entities are exempt from both state and local hotel taxes.
See Publication , Guidelines to Texas Tax Exemptions , for more information on qualifying nonprofit organizations. Employees of U. Foreign diplomatic personnel with a hotel tax exemption card issued by either the U. Department of State or the American Institute in Taiwan are exempt from state and local hotel taxes. Foreign guests staying at Texas hotels are not exempt from state and local hotel tax. Generally, employees of state agencies, boards, commissions and institutions must pay state and local hotel taxes, but they can request a refund of the hotel tax paid.
An organization that supports and encourages religion as an incidental part of its overall purpose, or one whose general purpose is furthering religious work or instilling its membership with a religious understanding, will not qualify for exemption under this provision. Some examples of organizations that do not meet the requirements for exemption under this definition are conventions or associations of churches, evangelistic associations, churches with membership consisting of family members only, missionary organizations and groups who meet for the purpose of holding prayer meetings, bible study or revivals.
This subsection deals with exemptions from the state hotel occupancy tax. For information on city and county hotel taxes, contact the affected city or county. State agency, institution, board, or commission employees who have not been issued a Hotel Tax Exemption Photo Identification Card must pay the hotel occupancy tax. A A permanent resident is exempt beginning on: i the first day for which the resident has entered into a written agreement with the hotel or has given a written notice to the hotel of the resident's intent to use or occupy a room or space in the hotel for the next 30 or more consecutive days and the resident actually stays for at least the next 30 consecutive days; or ii the first day after the 30th consecutive day of the stay, if the resident neither gave written notice of intent to stay, nor entered into any written agreement with the hotel.
For example, if a person does not notify the hotel that he intends to stay for at least 30 days, but stays 35 days, then the person is exempt from hotel tax from the 31st day through the 35th day, but tax is due on the first 30 consecutive days of the occupancy. B The permanent resident exemption ends when an interruption in the right to use or occupy the room or space occurs.
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