The City of Austin invests in arts and culture by allocating a portion of Hotel Occupancy Tax revenues to eligible applicants recommended for funding as a result of an equitable process in which they are found to meet established program criteria. As defined in the Texas Tax Code, Chapter 351.101 (a)(4), revenue from the municipal hotel occupancy tax may be used for: “(T)he encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms.” (Texas Tax Code, Chapter 351.101) The complete details of the State of Texas Hotel Occupancy Tax Code may be found at www.statutes.legis.state.tx.us

The Texas Commission on the Arts provides funding to local arts agencies, including the City of Austin Cultural Arts Funding Programs, for the purpose of “sub-granting” to local arts and cultural organizations.