A representative with the Texas Hotel & Lodging Association was present at the Sealy City Council meeting Tuesday night and gave an in depth presentation as well as a Q&A for the council on the Hotel Occupancy Tax or H.O.T. tax.  The Hotel Occupancy Tax is governed by the Texas Tax Code, specifically chapter 351.  The H.O.T. tax, unlike other taxes, has to be used differently as mandated by the State Of Texas.  With regular sales tax the city is free to utilize the money in whatever way it deems best.  But, the H.O.T. Tax is governed by Texas Statute.  The statute outlines the percentages and ways that the money can be spent, and it is quite specific.  The primary stipulation of the H.O.T. Tax is that it must be spent on things that directly promote and enhance tourism and the hotel and convention industry.  If it does not meet this criteria, then a municipality is not allowed to spend it for that event.  The 33-minute presentation given by the representative outlining the H.O.T. tax and how it is specifically to be utilized can be viewed below in its entirety:

 

 

[adrotate banner=”9″]