Hotel/Motel Taxes

The City's Hotel Occupancy Tax (HOT) rate is 7%. 

This is in addition to the 6% rate imposed by the State of Texas, which must be remitted to the State.

If you own, operate, manage or control a hotel or short-term rental, you must collect the taxes imposed, for the city.

Reporting Periods

The regular calendar quarters of the year, the first quarter being composed of the months of January, February and March; the second quarter being the months of April, May and June; the third quarter being the months of July, August and September; and the fourth quarter being the months of October, November and December.

Filing

If any person shall fail to file a report as required herein or shall fail to pay th tax collector the tax imposed herein when such report or payment is due, he shall pay five percent of the amount due as a penalty, and after 30 days he shall pay an additional five percent tof such tax; provided, however, that the penalty shall never be less than one dollar ($1.00). Delinquent taxes shall draw interest at the rate of six percent per annum beginning 60 days from the date due. 

(Ordinance 1196, sec. 8, adopted 10-7-86; 2008 Code, sec. 11.04.008)

A Hotel Occupancy Tax Report must be returned with payment in order for payment to be processed. 

NOTE: Postmarked payment will not meet the deadline requirement for payment receipt.

Records Retention

The City of Leon Valley requires that your books and records be available for our inspection to ensure that HOT is accurately reported and exemptions are appropriate.

NOTE: Records must be retained for not less than 4 years.

Exemptions

A Texas Hotel Occupancy Tax Exemption Certificate (PDF) must be filled out and retained for review at the hotel where the tax is collected. The certificate must be retained for no less than four years from the date of full payment of the tax due for that reporting period for each exemption granted.

The hotel will incur a tax liability for any exemption for which an allowable exemption certificate is not on file and available for review or for any irregular exemption.

City of Leon Valley exemptions are granted for the following:

• Permanent residents
• United States government and its employees, including military personnel, traveling on official business are exempt from local hotel occupancy taxes.
• No tax shall be imposed hereunder upon a rental agreement rented  wholly or partly for a period of more than 30 consecutive days.

For information on the State Hotel Occupancy Tax, visit the Texas Comptroller's website.