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 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 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.
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.
Hotel 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 county tax can also be paid through the online tax reporting system for your convenience.
The total tax rate is 15%.
Reporting Requirements for Hotel Tax
Hotel tax 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 Avenu Insights..
Avenu Insights offers online filing for many hotel and short term rental owners around the country. Online filing is available at revds.com. Paper forms for municipalities are also available for download on revds.com.
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.
Please note that audits may be done from time to time on hotel tax payments from hotels or short term rentals. Please keep copies of all exemption forms and revenues/bookings in case an audit is conducted on your property.