Hotels and taxpayers should review the State’s online database to determine the exemption status of an organization or entity. In most cases, you will be able to determine if an organization or entity is exempt for City tax purposes in addition to determining State tax exemption status. If you have additional questions, please call the State Tax Assistance Section at 1-800-252-1385.
|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).||No||Yes|
|Certain Texas State officials with special hotel tax exemption cards (including heads of state agencies, members of state boards and commissions, judicial officials at the district court level and above, state legislators, and legislative employees.)||Yes||Yes|
|United States government agencies and their employees, including federal military personnel and American Red Cross employees, traveling on official business representing the United States. State military personnel are considered federal military personnel for the purposes of this exemption.||Yes||Yes|
|Diplomatic personnel who present a tax exemption card issued by the United States Department of State.||Yes||Yes|
|Permanent residents – 30 Day Rule*||Yes||Yes|
|Religious, educational, and charitable organizations including college and university personnel traveling on official business.||No||Yes|
|Contractors working for the federal government.||No||No|
|Local Governments and their employees (e.g. City and County personnel).||No||No|
* Permanent resident – any occupant who has the right to use or possess a room in a hotel for at least 30 consecutive days, so long as there is no interruption of payment for the period. A guest who notifies the hotel, upon arrival, of their intentions to stay 30 consecutive days will be exempt from the beginning of their stay. Those guests who do not give the hotel written notice upon arrival that they intend to stay 30 consecutive days, must pay the tax for the first 30 days. Thereafter, they will be exempt.
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.