Rates and reporting requirements

Every person required to collect the Hotel Occupancy Tax must file a Report of Hotel Occupancy Tax with the City of Austin Financial Services Department 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.

City and State 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. 

If no taxes are owed

Even if you have not collected any monies, please enter zero (0) in the Total Room Receipts field.  If all your monies collected are 30 day exempt, then submit a report entering the gross receipts in the Total Room Receipts and the same amount in the Exempt Over 30 Receipts on your online account.  If you are no longer in business, please notify the Controller's Office by email at (hotels@austintexas.gov) to close your account.

Taxes when a hotel is purchased

If an owner sells his/her hotel, the successor to the seller or the seller's assignee shall withhold an amount of the purchase price sufficient to pay the amount of tax due until the seller provides a receipt issued by the City of Austin Financial Services Department showing that the amount has been paid or a certificate issued by the City of Austin Financial Services Department showing that no tax is due.

The purchaser can file a written request with the City of Austin Financial Services Department for the issuance of a certificate stating that no tax is due or for the issuance of a statement of the amount required to be paid before a certificate may be issued. The City of Austin Financial Services Department shall issue the certificate or statement no later than the 60th day after the date the request is received.

The purchaser of a hotel who fails to withhold an amount of the purchase price as required is liable for the amount of tax required to be withheld to the extent of the value of the purchase price.

Records retention

Upon reasonable notice, the City of Austin must have access to books and records to enable it to determine the correctness of any report filed and the amount of taxes due.  The names, addresses, and identification relied upon in the granting of exemptions to the collection of the tax levied, and any other information the City may reasonably require, shall be accessible for review. You must keep copies of all reports submitted to our office for your own records.

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.

AirBnB tax remittance

Currently AirBnB is collecting and remitting the 6% State Hotel Occupancy Tax to the State of Texas.  The owner of the property is responsible for collecting and remitting the 11% City of Austin Hotel Occupancy Tax on a quarterly basis. AirBnB is NOT collecting the City of Austin Hotel Occupancy Tax of 11% from the property owner and AirBnB is NOT remitting the 11% City of Austin Hotel Occupancy Tax to the City of Austin.

Quarterly Texas Hotel and Motel Tax Report

When the City of Austin Hotel Occupancy Tax report is mailed or hand-delivered to the Financial Services Department, a copy of the concurrent quarterly Texas Hotel and Motel Tax Report filed with the State of Texas by the “Hotel” must be attached to the quarterly report.

When the City of Austin Hotel Occupancy Tax is filed online, the Financial Services Department may request the quarterly Texas Hotel and Motel Tax Report filed with the State of Texas for the "Hotel".

Tax calculator

Estimate past, present, or future taxes. The results from this calculator are not a valid tax report.

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Deadlines and penalties

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.

Late penalties

If any person fails to file a quarterly report, files a false report, or fails to pay the full amount of the tax due to the City Financial Services Department by the last day of the month following the end of the quarter, a 5 percent penalty will be assessed on the amount of 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 also 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.

Revenue subject to Hotel Occupancy Tax

Room use, cleaning, and readying

City Hotel Occupancy Tax is 11% on all amounts charged to the guest related the use, cleaning and readying of a room for occupancy. The State of Texas imposes an additional Hotel Occupancy Tax.

The property owner is responsible for collecting and remitting Hotel Occupancy Tax to the City of Austin on amounts charged to guests related to the use, cleaning and readying of a room for occupancy. This includes:

  • Reservation fees
  • Cleaning fees
  • Pet charges
  • Pet cleaning fees
  • Rollaway bed charges
  • Refrigerator charges
  • Safe charges
Packages

(Example: Golf or honeymoon packages). When the guest folio is lump sum the entire amount is subject to Hotel Occupancy Tax for the City of Austin hotels; when the folio separately states the room charge from other package items, only the room charge is subject to Hotel Occupancy Tax.

Guaranteed no-show revenue

City Hotel Occupancy Tax is due when the full room rate is paid and cancellation is within 30 days of the scheduled stay. Fees paid that are less than the room rate are not taxable, such as a percentage or sliding scale.

Attrition fees

Fee charged because group did not fulfill their total event commitment (Example: An event blocked for 100 rooms, only 50 were rented and occupied, penalty charged for 50 rooms not rented)

Attrition fees are taxable only if by paying the fee a person achieves the right to use or possess the room. In the example given, the group is charged the full price of rooms not rented and, therefore the fee is taxable. An attrition fee that is based on a percentage or sliding scale is not taxable.

Rooms for resale

Rooms for Resale sold to outside parties such as tour operators, meeting planners, or others who resale rooms. The property owner is responsible for collecting and remitting Hotel Occupancy Tax to the City of Austin on amounts charged to guests related to the use, cleaning and readying of a room for occupancy. 

Revenue not subject to Hotel Occupancy Tax

Complimentary rooms

Complimentary rooms are not subject to City of Austin Hotel Occupancy Tax if the Hotel receives no consideration for the room. However, if the Hotel is reimbursed in any way, including barter or trade, the amount is taxable.

Departures or cancelllations

Early departure fees, late departure fees, and cancellation fees are not subject to the City of Austin Hotel Occupancy Tax unless they are equal to the room rate.

Banquet or meeting rooms

These rooms are not subject to Hotel Occupancy Tax for the City of Austin. The State of Texas does collect Hotel Occupancy Tax on these rooms.

Personal services

Hotel Occupancy Tax is not due to the City of Austin on separately stated charges for personal services, except for those related to the use, cleaning and readying of a room for occupancy. Exempt personal services include:

  • Childcare expenses
  • Telephone charges
  • Internet charges
  • Laundry services
  • Pay-per-view television
  • Video game rental
  • Self parking
  • Garage parking
  • Valet parking

If you have questions regarding the taxable status of a particular circumstance, please submit your inquiry in writing to our office with specific examples in order to receive a determination on the taxability. Submissions can be sent via email or mailed to:

City of Austin FSD - Hotel

PO Box 2920

Austin, TX 78768