BUDGET, FINANCE & AUDIT

Hotel Occupancy Taxes

The City of Waco levies a tax upon the occupant of any room or space furnished by any hotel where such costs of occupancy is at the rate of $2.00 or more per day, at the rate of seven per cent of the charge for the room. 

Occupant

Occupant shall mean anyone who, for a consideration, uses, possesses, or has a right to use or possess any room or rooms, or sleeping space or facility in a hotel under any lease, concession, permit, right of access, license, contract or agreement for less than 30 days.

Hotel

Hotel shall mean any building in which the public may, for a consideration, obtain sleeping accommodations. The term shall include but not be limited to, hotels, motels, tourist homes, houses or courts, lodginghouses, inns, roominghouses bed and breakfast homestay establishments, bed and breakfast inns and short term rental facilities, but does not include hospitals, sanitariums or nursing homes.

The revenue derived from the Hotel Occupancy Tax is used to promote tourism and the convention and hotel industry in Waco.

New Registrants

If not yet registered with the City of Waco Finance Department, please complete a Registration Form to establish your account.

Short-Term Rentals

All short term rentals within the city of Waco must be licensed to operate. Depending on zoning, some properties may also need to obtain a special permit. Please contact the City of Waco Planning Department to apply for a license, and visit the Short Term Rentals page to find out more about this process. Please note: even if you do not currently have a license to operate, you are still responsible for collecting and remitting hotel occupancy taxes.

Registration Form (New Registrants)

Tax Rates

The City of Waco’s Hotel Occupancy Tax rate is 7 percent. 

The City’s tax is in addition to the 6 percent rate imposed by the State of Texas, which must be remitted separately to the State.  For information on the State Hotel Occupancy Tax, please visit their website or call 1-800-252-1385.

McLennan County's tax rate is 2%
The total tax rate is 15%.

Reporting Requirements

Reports and payments are due on the 20th day of each month.

The City and the County have contracted the collection of hotel occupancy tax with MuniServices, LLC.

MuniServices, LLC offers online filing for many hotel motel occupancy tax municipalities. Online filing is available at revds.com or by going to salestaxonline.com. Paper forms for municipalities are also available for download on revds.com. (Available September 1, 2017.)

Sales Tax Online

 

Remit paper filing to:
MuniServices, LLC. (Attn: TX Hotel Occupancy Tax)
PO Box 830725
Birmingham, AL 35283

Every person required to collect the Hotel Occupancy Tax must file Report of Hotel Occupancy Tax Form with the City of Waco Financial Services Department showing the amount paid for all room occupancies in the preceding month or quarter, the amount of permanent (30-day) and other exemptions granted, and the amount of the tax collected on such occupancies.  A payment in the amount of the tax collected must accompany this report.  In addition, a copy of the concurrent “Texas Hotel and Motel Tax Report” filed with the State of Texas by the hotel must be attached to the quarterly report submitted to the City. 

Failure to collect the tax, not filing a report, or filing a false report, is a misdemeanor under City ordinance. In addition, such person who fails to remit the tax imposed by this article within the time required shall forfeit five per cent of the amount due as a penalty, and after the first 30 days shall forfeit an additional five per cent of such tax. Delinquent taxes shall draw interest at the rate of ten per cent per annum beginning 60 days from the date due on the tax imposed by this article.

 

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