Hotel/Motel Information
U
nder City Ordinance Number 7837, an occupancy tax
of 7% is levied on any room or space furnished by any
hotel or motel. The hotel occupancy tax is imposed
against any person (including any corporation and any
other legal entities) who either occupies or has the right
to occupy the hotel room. Under the auspice of the
hotel/motel definition, the following are also
responsible for collecting the occupancy tax: any tourist
home, tourist court, lodging house, inn, rooming house,
bunk houses, residency inns, condominiums, cabins,
cottages, or bed and breakfast. The occupancy tax is
assessed against the use or the right to use a room that
is ordinarily used for sleeping.
The occupancy taxes collected are then used to directly
enhance and promote tourism and the hotel and
convention industry. The expenditure must fit into one
of the five following categories:
• Fund the establishment, improvement, or
maintenance of a convention center or visitor
information center.
• Pay the administrative costs for facilitating
convention registration.
• Pay for tourism-related advertising and
promotions of the City or its vicinity.
• Fund programs that enhance the arts.
• Fund historical restoration or preservation
programs.
Some government agencies or employees are exempt
from the hotel/motel occupancy tax. Federal
government agencies or employees and United States
government and its employees traveling on official
United States government business are exempt from
the occupancy tax.
Most State employees are not exempt from the
occupancy tax. State employees who present a special
Hotel Tax Exemption Photo ID or Tax Exemption Photo
ID or Tax Exemption Card are exempt. State employees
without the Hotel Tax Exemption Photo ID or Tax
Exemption Card are not exempt. Diplomatic personnel
of a foreign country who present a Tax Exemption Card
issued by the U.S. Department of State are also exempt
from the City Hotel Occupancy Tax.
Permanent residents, hotel guests who notify the hotel
in advance either in writing or verbally and occupy or
have the right to occupy a room for at least 30
consecutive days, are exempt from the City Occupancy
Tax.
The following are also not exempt from the City
Occupancy Tax:
• City and County governments and their
employees and
• Religious, educational, or charitable
organizations
The following are subject to Hotel/Motel Tax:
• Pet charges
• Smoking fees
However, Damage fees are not subject to Hotel/Motel
Tax.
Each establishment is required to obtain an Exemption
Certificate at the time of registration and maintain the
certificate on file in order to qualify for an exemption. If
an exemption ID card is used, a copy of it must be on
file.
Hotels may deduct 1% of the Tax Due for Collecting the
tax and timely filing of the quarterly reports and
payment of the tax to the City of Midland. A hotel that
fails to remit the correct hotel occupancy tax owed, by
the last day of the month following the end of the
quarter, may be subject to a fine not to exceed $500.00.
In addition, the hotel will be liable for a late penalty of
15% and any City attorney fees incurred. Any
delinquent taxes/penalties will accrue interest at the
rate of 12%. The City of Midland Finance Director is
authorized to file a lien for any delinquent
taxes/penalties/interest.
State and City occupancy tax requirements differ.
This information is provided by the City of Midland
Office of the Internal Auditor
www.MidlandTexas.gov
Accounting Division • 300 N. Loraine, Midland TX 79701 •
432-685-7221
