Revenue derived from the Hotel Occupancy Tax is used to promote travel & tourism and the hotel industry in San Antonio
The hotel occupancy tax provides millions of dollars to support many facets of our community from Arts & Culture, to Historic Preservation, to the maintenance of our signature Sports Facilities
HOTEL OCCUPANCY TAX 101
Hotel owners, operators, or managers must collect State hotel occupancy tax from their guests 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 that are used as Short Term Rentals (STRs).
Local hotel taxes apply to sleeping rooms costing $2 or more each day.
HOTEL OCCUPANCY TAX USES
Under the State of Texas Tax Code, every event, program, or facility funded with hotel occupancy tax revenues must be likely to do two things:
1) directly promote tourism and 2) directly promote the convention and hotel industry
“Tourism” is defined under Texas law as guiding or managing individuals traveling to a different city, county, state, or country.
SAN ANTONIO’S 16.75% TAX RATE
San Antonio’s hotel occupancy tax provides millions of dollars to support our convention & visitor’s bureau (Visit San Antonio), our local Arts & Culture and History & Preservation efforts, and maintenance & improvements to the convention center and sports & entertainment facilities.
Additionally, the hotel occupancy tax has enhanced the quality of life for the residents of San Antonio by financing improvements to local amateur sports and cultural arts facilities, including the San Antonio River, which all promote tourism.
BREAKING DOWN THE 16.75% TAX RATE
Most cities are eligible to adopt a hotel occupancy tax at a rate of up to 7% of the price paid for the use of a hotel room. Additionally, sports and community venue projects can levy hotel taxes at rates varying up to 2%.
If a city adopts the maximum hotel occupancy tax within its jurisdiction, the combined state, county, and municipal hotel occupancy tax rate may not exceed 17%.
Short Term Rentals (STRs) are also obligated to report Hotel Occupancy Tax Fees to the City
The State of Texas hotel occupancy tax rate is 6%
The six percent state hotel tax applies to any room or space in a hotel, including meeting and banquet rooms.
The City of San Antonio hotel occupancy tax rate is 9%
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.
San Antonio allocates hotel occupancy revenues to fund:
- Improvements and maintenance to City owned Convention & Sports Facilities | 35%;
- Visit San Antonio for the marketing & promotion of San Antonio | 35%,
- Arts & Culture programs and grants | 15%;
- Historic Preservation | 15%
The City of San Antonio also collects a hotel occupancy tax rate of 1.75% for Bexar County
The Bexar County Venue Tax (another name for their portion of the hotel occupancy tax) and Car Rental Tax have supported the following community improvements:
- $125 Million San Antonio River Improvements;
- $80 Million Amateur Sports Facilities;
- $100 Million Community Arenas and Grounds;
- $110 Million Cultural Arts / The Tobin Center
USE OF LOCAL HOTEL OCCUPANCY TAX REVENUES
Every event, program, or facility funded with hotel occupancy tax revenues must meet two criteria:
1) directly promote tourism; and 2) directly promote the convention and hotel industry.
A “direct” promotion of the convention and hotel industry has been consistently interpreted by the Texas Attorney General as a program, event, or facility likely to cause increased hotel or convention activity. This activity may result from hotel or convention guests that are already in town and choose to attend the hotel tax funded facility or arts or historical event, or it may result from individuals who come from another city or county to stay in an area lodging property at least in part to attend the hotel tax funded event or facility.
Criteria #1: First, every expenditure must directly enhance and promote tourism AND the convention and hotel industry.
Criteria #2: Every expenditure of the hotel occupancy tax must clearly fit into one of nine statutorily provided categories for expenditure of local hotel occupancy tax revenues:
- Funding the establishment, improvement, or maintenance of a convention center or visitor information center.
- Paying the administrative costs for facilitating convention registration.
- Paying for advertising, solicitations, and promotions that attract tourists and convention delegates to the city or its vicinity.
- Expenditures that promote the arts.
- Funding historical restoration or preservation programs.
- Funding certain expenses, including promotional expenses, directly related to a sporting event within counties with a population of under 1 million.
- Funding the enhancement or upgrading of existing sports facilities or sports fields for certain municipalities.
- Funding transportation systems for tourists
- Signage directing tourists to sights and attractions that are visited frequently by hotel guests in the municipality