Hotel Occupancy Tax Quarterly Refund

Applicable to

State agencies that reimburse employees for state-related hotel stays.

Policy

The hotel occupancy tax refund process was created to satisfy the requirements of Texas Tax Code, Sections 156.103 and 156.154.

The process:

• Automatically refunds hotel occupancy taxes to agencies that reimbursed employees for hotel occupancy taxes paid while on official state business.
• Extracts data from the Uniform Statewide Accounting System (USAS) General Ledger and creates USAS transactions that:
  • Generate a refund of expenditure to an agency and a refund of revenue to agency 902 (Comptroller – State Fiscal).
  • Are included in that night’s USAS cycle.

Transactions/Report Schedule — USAS DAFR8190 and DAFR8200 Reports

The hotel occupancy tax refund is generated within the first 10 days of December, March, June and August. A final sweep is processed on Aug. 31.

The refund is based on activity from the prior fiscal quarter. The report schedule is as follows:

Hotel Occupancy Tax Refund Report Schedule
December sweep	Captures activity from the first fiscal quarter: September – November	Reports are available by Dec. 9
March sweep	Captures activity from the second fiscal quarter: December – February	Reports are available by March 9
June sweep	Captures activity from the third fiscal quarter: March – May	Reports are available by June 9
August sweep	Captures activity from the fourth fiscal quarter: June and July only	Reports are available by Aug. 9
FINAL Aug. 31 sweep	Captures activity from the fourth fiscal quarter: August only	Reports are available by Sept. 9

Document Number/Suffix Scheme

The document number is GRXXXYYY/zzz where:

• XXX is the fiscal Julian date that the refund first attempts to process.
• YYY is the agency number related to the expenditure being refunded.
• zzz is the document number suffix and represents the agency number affected by the transaction.
  
  Example: Agency 123 has $100 in hotel occupancy tax expenditures that will be included in the June refund process. The document number scheme would be:
  • GR274123/123, T-code 924, $100.
  • GR274123/902, T-code 934, $100.

Processing Details

When extracting information from the USAS General Ledger, the general ledger account 5500 and comptroller objects 7135, 7136, 7137, 7138, 7139, 7140 and 7141 are included. The T-codes 924 and 934 are excluded — the Comptroller’s office uses these T-codes to generate the refunds.

Note: Do not make adjustments to any transactions generated by the sweep. Sweep transactions are those using T-codes 924 and 934. Contact your ACO to coordinate any adjustments.

CAPPS Agencies

For agencies receiving a GR document on the HX file through CAPPS, the entry for this refund will be included on a journal.

If not using the HX file for GR documents, agencies may need to increase their CAPPS actuals ledger by the amount of the refund. Use the coding block used in USAS — no T-code is required in CAPPS.

Legal Citation

Texas Tax Code, Sections 156.103 and 156.154