Hotel Occupancy Tax Senate Bill

On July 23, 2007, the Midland County Commissioner's Court adopted a hotel occupancy tax equal to 1% of the price paid for a hotel room. This action was authorized by Senate Bill 1463, which was enacted by the Texas Legislature during the 80th Legislative Session.

Hotel Occupancy Tax Reporting and Payment Requirements

Hotels are required to collect Hotel Occupancy Tax for Midland County and report and pay Hotel Occupancy Tax to Kathy Reeves by the last day of the month following the quarter in which the tax was collected.

A. Tax Requirement

Every person required to collect Hotel Occupancy Tax shall file a report showing:

  1. The consideration paid for occupancies in the preceding quarter
  2. The amount of the tax collected on the occupancies
  3. The gross tax due to the County

B. Registration Requirement

Every hotel is required to have a Hotel Information form on file with Midland County. If the establishment is sold or has a name change, a hotel is required to provide Midland County with a new or updated information form.

C. Amount of & Basis for Tax

Hotel Occupancy Tax for Midland County is equal to 1% of the consideration paid by the occupant to the hotel and shall not include the cost of any food served or personal services rendered to the occupant not related to cleaning and readying the room or space for occupancy, and shall not include any tax imposed by other governmental agencies. Taxes are levied upon occupants in a hotel room that is ordinarily used for sleeping and the cost of occupancy is $2 or more.

D. Completion of Reports

Enclosed is a Midland County Hotel Occupancy Tax Report to be used and mailed along with payment to Midland County quarterly. If you do not receive a form to use as a Master copy, you may call and request one at 432-688-4810. A report is due from the hotel whether or not a Tax Report is received by the hotel.

The Hotel Occupancy Tax Report must be filled out completely and signed. Reports must be typed or printed. If the report is not filled out completely and signed, it will be considered an incomplete report and returned to the owner. Penalties and interest will continue to accrue until the Report is filled out completely and returned to Midland County (Kathy Reeves).

E. Reporting Due Dates

Hotel Occupancy Tax reports and payments are due to Midland County by the last day of the month following the quarter in which the tax was collected. (Example: Tax Reports and payments for collections made from October to December 2007 are due to the County by January 31, 2008.)

  1. A 1% discount can be taken by the hotel if taxes are processed by Midland County on or before the due date.
  2. A penalty of 15% is assessed if report is filed or tax paid after the due date.
  3. Any delinquent taxes/penalties will accrue interest at the rate of 12% annually.

F. Reporting Violations

The controlling party of a hotel violates the Order and is subject to a fine not to exceed $500 if the person:

  1. Fails to collect and remit the correct tax owed
  2. Fails to file a report as required in a timely manner
  3. Fails to pay the County the tax when payment is due
  4. Files a false report

G. Certificate of Paid Hotel Occupancy Taxes

Prior to the sale of a hotel, a Certificate of Paid Hotel Occupancy Taxes must be obtained. If the buyer has not obtained this certificate, he becomes responsible for any and all unpaid taxes.

Contact

If you have any questions about your duties under this Order, you may contact Manny Natividad, Assistant Chief for Midland County Tax Assessor-Collector at 432-688-4813.

I. Hotel Occupancy Tax Exemptions

Simplified, Basic Hotel Occupancy Tax Exemption Rules

Type of Entity Requesting ExemptionExempt from State Occupancy TaxExempt from Local Occupancy TaxComments

Agricultural Development

Yes

Yes

Guest must present Comptroller letter of exemption and fill out tax exemption certificate.

City and County Employees

No

No
N/A


Charitable Organizations

Yes

No

Guest must present Comptroller letter of exemption and fill out tax exemption certificate.

Electric and Telephone Cooperatives

Yes

Yes

Guest must present Comptroller letter of exemption and fill out tax exemption certificate.

Elementary and Secondary Educational Organizations (Public and Private Elementary and Secondary Schools and Independent School Districts in Texas and other states and countries)

Yes

No

Guest must fill out tax exemption certificate.

Federal Employees

Yes

Yes

Guest must fill out tax exemption certificate.

Foreign Diplomats

Yes

Yes

Guest must present tax exempt car issued by U.S. Department of State and fill out tax exemption certificate.

Health Facilities

Development Corporations

Yes

Yes

Guest must present Comptroller letter of exemption and fill out tax exemption certificate.

Housing Authorities and Finance Corporations

Yes

Yes

Guest must present Comptroller letter of exemption and fill out tax exemption certificate.

Pan American Games 2007 / Olympic Games 2012 Local Organizing Committees

Yes

No

Guest must present Comptroller letter of exemption and fill out tax exemption certificate.

Permanent Residents (30 consecutive days or more)

Yes

Yes

Guest must notify of intent to stay 30 or more days. If stay is interrupted, occupancy taxes must be paid.

Public and Private Universities and Junior Colleges in Texas

Yes

No

Guest must fill out tax exemption certificate.

Public and Private Universities and Junior Colleges outside the State of Texas

Yes

No

Guest must fill out tax exemption certificate.

Public Facility Corporation

Yes

Yes

Guest must present Comptroller letter of exemption and fill out tax exemption certificate.

Regional Education Service Centers

Yes

No

Guest must fill out tax exemption certificate.

Religious Organizations

Yes

No

Guest must present Comptroller letter of exemption and fill out tax exemption certificate.

State Employees with Photo Identification Hotel Tax Exemption Card

Yes

Yes

Guest must present state photo ID card that specifically note4s that employee is exempt from hotel occupancy tax.

Guest must fill out tax exemption certificate.

State Employees without Photo ID Hotel Tax Exemption Card

No

No

Guest must pay the tax, and the state and local governments will then reimburse the state employer through a separate process.