Texas Hotel Occupancy Tax Exemptions
See Rule 3.161: Denitions, Exemptions, and Exemption Certicate for additional information.
Form 12-302 (Back)(Rev.2-17/19)
United States Federal Agencies or Foreign Diplomats (exempt from state and local hotel tax)
This exemption category includes the following:
• the United States federal government, its agencies and departments, including branches of the military, federal credit
unions, and their employees traveling on ofcial business;
• rooms paid by vouchers issued by the American Red Cross and the Federal Emergency Management Agency; and
• foreign diplomats who present a Tax Exemption Card issued by the U.S. Department of State, unless the card specically
excludes hotel occupancy tax.
Federal government contractors are not exempt.
Texas State Government Ofcials and Employees (exempt from state and local hotel tax)
This exemption category includes only Texas state ofcials or employees who present a Hotel Tax Exemption Photo Identication
Card. State employees without a Hotel Tax Exemption Photo Identication Card and Texas state agencies are not exempt.
(The state employee must pay hotel tax, but their state agency can apply for a refund.)
Charitable Entities (exempt from state hotel tax, but not local hotel tax)
This exemption category includes entities that have been issued a letter of tax exemption as a charitable organization and their
employees traveling on ofcial business. See website referenced below.
A charitable entity devotes all or substantially all of its activities to the alleviation of poverty, disease, pain and suffering by
providing food, clothing, medicine, medical treatment, shelter or psychological counseling directly to indigent or similarly
deserving members of society.
Not all 501(c)(3) or nonprot organizations qualify under this category.
Educational Entities (exempt from state hotel tax, but not local hotel tax)
This exemption category includes in-state and out-of-state school districts, private or public elementary, middle and high schools,
Texas Regional Education Service Centers and Texas institutions of higher education (see Texas Education Code Section
61.003) and their employees traveling on ofcial business.
A letter of tax exemption from the Comptroller of Public Accounts as an educational organization is not required, but an
educational organization might have one.
Out-of-state colleges and universities are not exempt.
Religious Organizations (exempt from state hotel tax, but not local hotel tax)
This exemption category includes nonprot churches and their guiding or governing bodies that have been issued a letter of
tax exemption from the Comptroller of Public Accounts as a religious organization and their employees traveling on ofcial
business. See website referenced below.
Exempt by Other Federal or State Law (exempt from state and local hotel tax)
This exemption category includes the following:
• entities exempted by other federal law, such as federal land banks and federal land credit associations and their employees
traveling on ofcial business; and
• Texas entities exempted by other state law that have been issued a letter of tax exemption from the Comptroller of
Public Accounts and their employees traveling on ofcial business. See website referenced below. These entities
include the following:
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nonprot electric and telephone cooperatives,
housing authorities,
housing nance corporations,
public facility corporations,
health facilities development corporations,
cultural education facilities nance corporations, and
major sporting event local organizing committees.
For Exemption Information
A list of charitable, educational, religious and other organizations that have been issued a letter of exemption is online at
www.comptroller.texas.gov/taxes/exempt/search.php. Other information about Texas tax exemptions, including applications, is
online at www.comptroller.texas.gov/taxes/exempt/index.php. For questions about exemptions, call 1-800-252-1385.