HB 2276 Update to Hotel Occupancy Tax, Agency Refunds (FPP S.001)

New Comptroller Object for State Hotel Occupancy Tax in Port Aransas Effective July 1

State agencies that reimburse their employees for the state hotel tax or pay the tax by direct billings are entitled to a refund of the tax. House Bill 2276, 81st Legislature, Regular Session, amends the Tax Code for taxes paid on or after July 1, 2009, to include Port Aransas along with Galveston and South Padre Island in the cities to which special state hotel tax allocations apply.

Per HB 2276, agencies must use new comptroller object 7138 to identify the state portion of the hotel occupancy tax paid within Port Aransas city limits. Agencies will use the code for any state hotel tax paid in Port Aransas on or after July 1. Institutions of higher education are exempt from this requirement. For state hotel taxes paid before July 1 in Port Aransas, please continue to use comptroller object 7135.

Agencies should also continue to use comptroller object 7105 (incidental in-state expense) to record local (county and municipal) hotel taxes paid at any time for all locations in Texas. Agencies should make preparations for altering their in-house travel vouchers to begin properly recording these expenses when the bill takes effect. For more information, see Hotel Occupancy Tax, Agency Refunds (FPP S.001).