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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Hotel occupancy taxes
Exception for employees of educational organizations

A state employee of an agency that qualifies as an educational organization is exempt from paying the state hotel occupancy tax. Texas Tax Code Section 156.102(a) The employee is not exempt from paying the county or municipal hotel occupancy tax.

A Texas institution of higher education may not reimburse a state employee for a state hotel occupancy tax charged by a commercial lodging establishment if the employee fails to present a properly completed exemption certificate to the establishment. Texas Government Code Section 660.116(b) However, this prohibition does not apply if the employee does not present the certificate because he or she is required by the agency to conceal his or her identity.

If the state employee of an institution of higher education presents a properly completed exemption certificate to a commercial lodging establishment and the establishment refuses to honor the certificate, then a state agency shall reimburse the employee for all the hotel occupancy taxes charged by the establishment. The agency must provide the Comptroller with the name of each establishment within Texas that refuses to honor a properly completed and presented exemption certificate.

Educational Organization
An association that is organized and operated exclusively for an educational purpose, but only if no part of the association’s net earnings benefit a private individual. Texas Tax Code Section 156.102(a) A state college or university meets this requirement only if the institution meets the definition of a Texas institution of higher education in the Texas Education Code. Texas Tax Code Section 156.102(b)(2)
Commercial Lodging Establishment
(1) a motel, hotel, inn, apartment, house or similar establishment that provides lodging to the public for pay; or (2) a person or establishment that provides lodging for pay that the Comptroller determines to have a sufficient number of the characteristics of a commercial lodging establishment for the purposes of the Travel Regulations Act. Texas Government Code Section 660.002(5) The term includes lodging provided by: (1) a governmental entity on property controlled by that entity; or (2) a religious organization on property controlled by that organization; or (3) a private educational institution on property controlled by that institution.
Comptroller
The Comptroller of Public Accounts.
County
When used in a provision that applies to states other than Texas, this term includes a parish of Louisiana.
Institution Of Higher Education
Has the meaning assigned by Texas Education Code Section 61.003. Texas Government Code Section 660.002(12)
May Not
A prohibition against a specified action. The term does not mean "might not" or its equivalents. Texas Government Code Section 311.016(5)
State Agency
A unit of state government that uses appropriated funds to pay or reimburse a travel expense of a state employee. This includes the Teacher Retirement System of Texas and the Employees Retirement System of Texas. Texas Government Code Section 660.002(19)
State Employee
An individual employed by a state agency, including a key official. Texas Government Code Section 660.002(20) The term includes prospective state employees and aircraft pilots.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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