Hotel Occupancy and Short Term Rental Tax Information
The City of Clarendon welcomes all businesses and wants to make every effort to assist with information on City Ordinances and Business Requirements. Please contact City Hall at (806) 874-3438 if you have any questions or need assistance.
State Requirements:
Hotel owners, operators or managers must collect state hotel occupancy tax from their guest who rent a room or space in a hotel costing $15 or more each day. The tax applies not only to hotels and motels, but also to bed and breakfasts, condominiums, apartments, and houses.
The state hotal occupancy tax rate is 0.06 (6%) of the cost of the room.
More information regarding state hotel occupancy taxes, including penalities, exemptions, payment requirements and more can be found on the Texas Comptroller of Public Accounts Hotel Occupancy Tax website.
Local Hotel Tax Requirements:
Hotel Occupancy Tax (HOT) must be reported and remitted by an individual or entity owning, operating, managing, or controlling a hotel within the City of Clarendon. The term "hotel" includes hotels, motels, tourist homes, tourist courts, lodging houses, inns, short term rentals, bed and breakfast, rooming houses, or other buildings where members of the public obtain sleeping accommodations for consideration where cost of occupancy is $2 per day.
The local hotel occupancy tax rate is 0.07 (7%).
Complete and detailed records must be kept of all reported and exemptions or reimbursements claimed so that reports can be verified. Failure to file this report and pay applicable tax may result in penalities pursuant to Article 11.03.006 of the City of Clarendon Code of Ordinances.
The revenue derived from the Hotel Occupancy Tax is used too promote the tourism and lodging industry in Clarendon.
Are Airbub/VRBO hosts required to collect a hotel occupancy tax?
Airbnb and other short-term rentals are subject to both state and local occupancy tax. While Airbnb and VRBO collect and remit occupancy tax to the State of Texas and some local municipalities, Airbnb and VRBO do not submit taxes to the City of Clarendon. Therefore, local hosts are required to collect and submit the occupancy tax (7%).
Filing Deadlines
The operator shall remit to the City, all hotel occupancy taxes collected pursuant to city ordinance by the 15th business day of the month following the month of collection. Filer shall remit all city hotel occupancy taxes collected pursuant to city ordinance by the 15th business day of the month following the month ending the quarter. (April, July, October, January)
Rules and Regulations
The city secretary shall be permitted to have access to books and records during business hours as shall be necessary to enable determination the correctness of the amount due or to determine whether a report should have been filed and the amount of taxes due.
Tax Rate
The hotel occupancy tax rate is set at 7% of the total amount paid by the occupant, excluding any other taxes levied by different government entities. Hotel operators are responsible for collecting this tax, regardless of whether the occupancy is arranged or paid for by the occupant directly, or through a third party such as an online travel company or other agent.
Penalties for Non-Compliance with Tax Collection, Reporting, and Payment
Any individual or entity mandated by this division to collect the hotel occupancy tax, submit required reports, and remit the collected tax to the city secretary, but fails to do so, or submits a false report, will be considered in violation of the provisions of this division. Such violations are classified as misdemeanors and, upon conviction, the offender will be subject to a fine as stipulated in the city ordinances. The city secretary is hereby authorized to make an assessment of the tax for such period. The tax assessed, together with any penalties provided by statue, shall be a prior and superior lien on all property of the motel.
There shall be a penalty of 5% per month or any part of a month on any tax delinquency or report remains unfiled beyond the due date.