Hotel Occupancy Taxes

A Hotel is any building or buildings in which the public may obtain sleeping accommodations for a cost of 2 dollars or more each day for a consecutive duration of 30 days or less. This includes, without limitation, hotels, motels, tourist homes, vacation rentals by owner, houses or courts, lodging houses, inns, hostels, rooming houses, bed and breakfasts, short-term vacation rentals or other buildings where rooms are furnished for consideration. It does not include hospitals, sanitariums or nursing homes.

The revenue derived from the Hotel Occupancy Tax is used to promote tourism and the convention and hotel industry in Austin.

Registration

New Registrants – Hotels, Motels, Bed & Breakfasts

If the hotel has not yet registered with the Controller’s Office, please complete a Registration Form to establish your account.

New Registrants - Short-term Rentals

If the hotel is a short-term rental registering with the City of Austin for the first time, a short-term rental license must first be obtained, and it must be renewed annually in order to operate.  Please visit www.austintexas.gov/str to find out more about this process.  Please note: even if the STR ordinance does not apply to you, the ordinances regarding the collection and remittance of hotel occupancy taxes still apply.

Austin Code Department will require confirmation that Quarterly Hotel Occupancy Tax Reports have been filed for each quarter as part of the STR license process.

Tax Rates

The City of Austin's Hotel Occupancy Tax rate is 11 percent, comprised of a 9 percent occupancy tax and an additional 2 percent venue project tax.  Texas law requires that each bill or other receipt for a hotel charge subject to the tax imposed for a venue project contain a statement in a conspicuous location stating: "The City of Austin requires that an additional tax of two percent (2%) be imposed on each hotel charge for the purpose of financing a venue project."

The City’s tax is in addition to the 6 percent rate imposed by the State of Texas, which must be remitted separately to the State.  For information on the State Hotel Occupancy Tax, please visit their website or call 1-800-252-1385.

Reporting Requirements

Every person required to collect the Hotel Occupancy Tax must file a Report of Hotel Occupancy Tax with the City of Austin Controller’s Office showing the consideration paid for all room occupancies in the preceding quarter, the amount of permanent (30-day) and other exemptions granted, and the amount of the tax collected on such occupancies.  A payment in the amount of the tax collected must accompany this report.

Reports and payments are due on the last day of the month following each quarterly reporting period (quarter ending March 31 due April 30, quarter ending June 30 due July 31, quarter ending Sept. 30 due Oct. 31, and quarter ending Dec. 31 due Jan. 31). A report is required even if no taxes are collected during the quarter.

If the due date falls on a weekend or holiday, the due date will be the next business day.  For customers paying online, the payment date will be the date payment is made online. For those mailing a check the valid U.S. Postal Service postmark date will be considered the payment date.  In addition, the City Controller’s Office must receive your report within five business days from the postmark date, or the report will be considered delinquent if past the due date.

On the first day after the due date of the report, a 5 percent penalty will be assessed on the tax due. On the 61st day past the due date, an additional 5 percent penalty will be assessed on the outstanding tax due. Delinquent taxes shall draw interest at the rate of 10 percent per annum beginning on the 61st day from the due date. Delinquent payments are applied to penalties and interest first.

STR owners and management companies are required to keep copies of all Hotel Occupancy Tax Reports. Austin Code Department will  require confirmation that Quarterly Hotel Occupancy Tax Reports have been filed for each quarter as part of the annual STR license renewal process.

Helpful links

City:
City of Austin Code
Hotel Revenue Taxability Matrix
Registration Form
Report of Hotel Occupancy Tax Form
Short-term Rental Licensing

State:
State of Texas Hotel Occupancy Tax information
Texas Hotel Occupancy Tax Exemption Certificate
State of Texas Exemption Database