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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Hotel occupancy taxes

A state employee is entitled to be reimbursed for hotel occupancy taxes incurred while traveling on state business. A state employee is not exempt from paying a state, county or municipal hotel occupancy tax collected by a commercial lodging establishment unless an exception applies. Texas Tax Code Sections 156.103(c), 352.007(d), 351.006(d) The tax is considered an incidental expense and not a portion of the maximum lodging reimbursement rate.

A state agency is entitled to receive a refund of its reimbursement of a state employee for state and local hotel occupancy taxes. To obtain a refund of the state portion of the hotel occupancy tax, the agency must file a refund claim including all information required by the Comptroller on the form provided by the Comptroller. Texas Tax Code Section 156.103(c) To obtain a refund of the local portion of the hotel occupancy tax, the agency must file a refund claim including all information required by the county or municipality on the form provided by the county or municipality. Texas Tax Code Sections 352.007(d,e), 351.006(d,e)

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.
Incidental Expense
An expense incurred while traveling on official state business. The term includes a mandatory insurance or service charge and an applicable tax, except a tax based on the cost of a meal. The term does not include a meal, lodging or transportation expense, a personal expense, an expense that an individual would incur regardless of whether the individual were traveling on official state business, a tip or a gratuity. Texas Government Code Section 660.002(10)
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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