Hotel Occupancy Tax Frequently Asked Questions

Every person owning, operating, managing or controlling any "hotel" shall collect the tax imposed and remit to the City. Hotel Occupancy Tax (HOT) must be reported for each calendar month even if there are no Taxable Room Receipts.

A "hotel" is any building in which members of the public obtain sleeping accommodations for consideration. The term includes, but is not limited to a:

• Hotel
• Motel
• Short Term Rentals (STR)
• Bed and Breakfast (B&B)

The term does not include hospitals, sanitariums, or nursing homes; or a dormitory or other housing facility owned or leased and operated by an institution of higher education, or a private or independent institution of higher education.

Gross Receipts from rentals- Exemptions + ATPID (if applicable) = Taxable HOT Receipts
Taxable HOT Receipts * .09 = Hotel Occupancy Tax for City of Arlington, TX

Note: The State's HOT is calculated in the same manner as local HOT; however, the rate is at 6% instead of 9%.

Gross Receipts is the total of all charges (rates charged to customer) for sleeping accommodations including any sleeping accommodations claiming an exemption. Charges received from use of meeting rooms and/or banquet space is included only for State HOT and not local HOT.

The Arlington Tourism Public Improvement District (ATPID) is made up of hotel and motel properties that have 75 or more sleeping rooms. These properties pay a 2% TPID Reimbursement on net occupancy receipts from sleeping rooms that are subject to Hotel Occupancy Tax. These funds are used to market and promote the City of Arlington as convention and tourism destination. The Arlington TPID Reimbursement went into effect October 15, 2016.

Hotels located in Arlington, Texas that have 75 or more rental sleeping rooms on site.

Taxable TPID Receipts *.02 = ATPID

State of Texas collects 6% and the City of Arlington collects 9% of hotel tax.

No, county and city agencies and their employees must pay state and local hotel taxes, and cannot request refunds of taxes paid.

State and Local HOT Exemption

• Federal government G6 their employees traveling on official business
• Foreign diplomats issued a tax exemption card by the U.S. Department of State, unless the card - specifically excludes hotel tax
• Texas State officials with a special hotel tax exemption card
• Some nonprofit entities and their employees traveling on official business

State Exemption Only

• Exempt religious organizations
• Qualified charitable organizations
• Educational organizations including independent school districts, public and private elementary and secondary schools, and in-state higher education institutions

Permanent Residents or Extended Stay

Guests who have 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. The guest must notify the hotel of their intent to stay at least 30 consecutive days by providing a letter of intent.

The 6 percent state hotel tax applies to any room or space in a hotel, including meeting and banquet rooms. Local hotel taxes, however, are due only on those rooms ordinarily used for sleeping.

There are no state or local hotel taxes on meeting and banquet rooms located in a building where no sleeping accommodations are provided.

Hotel Occupancy Tax (HOT) 15%

Fees related to room occupancy or readying the room for occupancy are subject to HOT.

City of Arlington 9%
The City of Arlington’s Hotel Occupancy Tax rate is 9 percent of room rate, plus applicable fees and charges. The rate is comprised of a 7 percent for City and an additional 2 percent for Venue.

State of Texas 6%
The State of Texas imposes a 6 percent Hotel Occupancy Tax rate. For information on the State Hotel Occupancy Tax, please visit the Texas Comptroller's website.

General Charges

City of Arlington - Arlington Tourism Public Improvement District (ATPID) 2%
The City of Arlington’s ATPID rate is 2 percent of room rate, plus applicable fees and charges. This rate is for hotels that have 75 or more rental sleeping rooms on site. Please visit the ATPID website for more information.

State of Texas - Hotel Recovery Fee .525%
Texas law imposes a margin tax on each company conducting business in Texas, including the Hotel Owner. To recover the cost of the margin tax, guest room rates are subject to a "State Cost-Recovery Fee" (currently 0.525% of the room rate, plus applicable state and local taxes).

General Services (Check with Hotel on specific services)

Separately charged services or items not subject to HOT are subject to 8.25% sales tax.

For additional information regarding taxable services and items, please visit the State of Texas Comptroller’s “Quick Reference Guide for Hotels”.

One Night Room Stay and Valet Service at an ATPID Arlington Hotel

• Room Rate = $225.00
• 2% ATPID = $225.00*.02 = $4.50
• City Tax 9% = ($225.00 + $4.50) *.09 = $20.66
• State Tax 6% = ($225.00 + $4.50) *.06 = $13.77
• Texas Recovery Fee = $225.00*.00525 = $1.81
• Overnight Parking Fee = $45.00
• Sales Tax 8.25% = $45 Service Fee *.0825 = $3.71

Total Hotel Bill = $45 Service Fee *.0825 = $312.64