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Dallas Texas Hotel Tax Exemptions

By May 20, 2016April 28th, 2022News and Articles, Tax News

Dallas Texas Hotel Tax Exemptions

Texas has among the highest combined hotel occupancy tax rates of any major metropolitan areas in the nation, with Houston at 17 percent and San Antonio at 16 ¾ percent.

In addition to local hotel occupancy taxes, all lodging properties operating in Texas are subject to a six
percent state hotel occupancy tax.

The the state hotel occupancy tax is administered by the Texas Comptroller at 6%.

Hotel tax does not apply to:

Hospitals, sanitariums, nursing homes, dormitories or other non-hotel housing facilities owned by institutions of higher education, and oilfield portable units do not collect the tax.

What Cities Need to Know to Administer Municipal Hotel Occupancy Taxes – Abridged Version

Texas Hotel & Lodging Association, 2011 pays for the use of a room in a hotel, including corporations, organizations, and other legal entities. The
hotel room must cost $2 or more per day for the local hotel tax to apply, and $15 or more per day for
the state hotel tax to apply

Exemptions from the Local Tax

Texas law provides certain hotel tax exemptions based on the length of a guest’s stay or the guest’s
affiliation with an exempt organization. Texas law is more permissive for exemptions from the state 6%
hotel occupancy tax than it is for local hotel tax exemptions. The state hotel occupancy tax allows for an
exemption for the following entities: educational, charitable, and religious entities are often exempt
from the state hotel occupancy tax. These entities are not exempt from local hotel occupancy taxes.

Focusing specifically on the local hotel occupancy taxes, there are primarily four categories of
exemptions permitted from municipal and county hotel occupancy taxes:

1) Federal Employees: Federal employees traveling on official business;
2) Diplomats: Foreign diplomats with a tax exempt card issued by the U.S. Department of
3) High Ranking State Officials: A very limited number of state officials with a hotel tax
exemption card (e.g. heads of state agencies, state legislators and legislative staff, members
of state boards and commissions, and state judges); and
4) Permanent Resident/Over 30 Day Stay: Persons or businesses who have agreed in advance
to use a hotel room for more than 30 consecutive days (i.e. the “permanent resident” hotel
tax exemption).

Dallas Texas Hotel Tax Exemptions

Ansari Tax

Mansoor Ansari

Author Mansoor Ansari

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