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RULE §3.162Hotel Occupancy Tax Base and Collection of the Tax

(a) Tax Base.

  (1) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

    (A) Charges for personal services--Charges which are unrelated to the cost of the actual occupancy of the room or rooms. Charges for personal services do not include charges which are related to the cleaning and readying of a room for occupancy.

    (B) Occupancy--The use or possession, or the right to the use or possession, of any room or rooms in a hotel for any purpose.

  (2) Charges subject to the tax. All charges for items or services, other than personal services or charges for the use of a telephone, which are furnished in connection with the actual occupancy of the room are subject to the hotel occupancy tax. The taxable charges include charges for the use of a television and charges for the furnishing of additional beds or cots. These charges are includable within the tax base whether or not separately stated.

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  (3) Charges not subject to tax. Charges for personal services are not subject to the hotel occupancy tax if they are separately stated. This includes charges for room service, messenger service, and valet service.

  (4) Package deals. If a hotel includes meals, drinks, admission to tourist attractions, or any other unrelated benefit in the charge for lodging, hotel occupancy tax must be paid on the entire amount. Only if these charges are separately stated on the bill to the customer may they be deducted from the amount subject to tax.

(b) Collection of Tax.

  (1) A charitable, eleemosynary, educational, or religious organization as defined in §3.161 of this title (relating to Definitions, Exemptions, and Exemption Certificate) that operates a hotel is not exempt from the requirement to report and pay hotel occupancy tax.

  (2) The hotel occupancy tax must be collected for the rental of meeting and banquet rooms located in a building having sleeping accommodations.

  (3) A person required to file a hotel occupancy tax report may withhold 1.0% of the tax due as shown on the report as reimbursement for the cost of collecting the tax. However, a person who fails to report the tax when due or fails to pay the tax within the required time may not claim the reimbursement.

Source Note: The provisions of this §3.162 adopted to be effective April 13, 1983, 8 TexReg 1028; amended to be effective December 5, 1996, 21 TexReg 11494

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