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, per 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, per 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, per Texas Tax Code, Sections 352.007(d,e), 351.006(d,e).