1996T5-ROOM OCCUPANCY TAX
ORDINANCE NO. 96-T5
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS,
PROVIDING THAT THE CODE OF ORDINANCES, CITY OF
SCHERTZ, TEXAS, BE AMENDED BY DELETING CHAPTER 17,
ARTICLE III, ROOM OCCUPANCY TAX, AND REPLACING SAME
WITH A REVISED CHAPTER 17, ARTICLE III, ROOM OCCUPANCY
TAX; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES
IN CONFLICT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the location and growth of the City has resulted m the
establishment of lodging facilities in the City, and
WHEREAS, the City Council has determined to modify the existing room
occupancy tax as permitted by state law;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS;
SECTION 1. Chapter 17, Article III, of the Code of Ordinances, City of Schertz,
Texas is hereby amended to read as follows:
ARTICLE III. ROOM OCCUPANCY TAX
Sec. 17-21. DefInitions.
The following words, terms, and phrases for the purpose of this
Article, except where the concept clearly indicates another meaning, are
defIned as follows:
(a) Consideration. Shall mean the cost of the room, sleeping space,
bed, or dormitory space or other facility in such hotel and shall not
include the cost of any food served or personal services rendered to the
occupant not related to cleaning and readying such room for occupancy
and shall not include any tax assessed for occupancy therefor by any other
governmental agency.
(b) Hotel. Shall mean any building or buildings in which a
member or members of the public may, for a consideration, obtain
sleeping accommodations. The term shall include hotels, motels, tourist
homes, houses or courts, lodging houses, inns, rooming houses, beds and
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breakfasts, and all other facilities where rooms or sleeping facilities or
space are furnished for a consideration. The term "hotel" shall not be
defIned so as to include hospitals, sanitariums or nursing homes or a
dormitory or other housing facility owned or leased and operated by an
institution of higher education used by the institution for the purpose of
providing sleeping accommodations for persons engaged in an educational
program or activity at the institution.
(c) Occupancy. Shall mean the use or possession or the right to
the use or possession of any room, space, or sleeping facility in a hotel for
any purpose.
Cd) Occupant. Shall mean anyone, who, for a consideration, uses,
possesses, or has a right to use or possess any room or rooms of sleeping
space or facility in a hotel under any lease, concession, permit, right of
access, license, contract, or agreement.
(e) Permanent Resident. Shall mean any occupant who has or
shall have the right to occupancy of any room or rooms or sleeping space
or facility in a hotel for at last thirty (30) consecutive days during the
current calendar year or preceding year.
CD Person. Shall mean any individual, company, corporation, or
association owning, operating, managing, or controlling any hotel.
(g) Quarterly Period. Shall mean the regular calendar quarters of
the year, the fIrst quarter being composed of the months of October,
November, and December; the second quarter being the months of
January, February, and March; the third quarter being the months of
April, May, and June; and the fourth quarter being the months of July,
August, and September.
(h) Tax Assessor/Collector. Shall mean the Tax Assessor/Collector
of the City of Schertz.
Sec. 17-22. Levy of Room Occupancy Tax.
There is hereby levied a tax upon the cost of occupancy of any room
or space furnished by any hotel where such cost of occupancy is at the
rate of Two Dollars ($2.00) or more per day, such tax to be equal to seven
percent (7%) of the consideration paid by the occupant of such room,
space, or facility to such hotel, exclusive of other occupancy taxes imposed
by other governmental agencies.
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Sec. 17.23. Exceptions.
(a) No tax shall be imposed hereunder upon a permanent resident.
(b) No tax shall be imposed hereunder upon an officer or employee
of the State of Texas or of an agency, institution (other than an
institution of higher education), board, or commission of the State of
Texas (i) when traveling on or otherwise engaged in the course of official
duties for the government entity, (ii) for whom a special provision or
exception to the general rate of reimbursement under the General
Appropriations Act applies, and (iii) who is provided with photo
identifIcation verifying the identity and exempt status of the person.
(c) No tax shall be imposed hereunder on the United States, any
entity of the United States, or any federal employee traveling on offIcial
business when the United States pays the hotel directly for the price of
the room by the use of a United States government check or purchase
order or a United States government credit card issued only in the United
States government agency's name. This exception shall not apply to
federal employees traveling on offIcial business when paying from their
own funds, including the use of cash, personal check, or any credit card
issued in the individual's name.
(d) No tax shall be imposed hereunder on diplomatic personnel
who present a Tax Exemption Card issued by the United States
Department of State.
Sec. 17-24. Collection.
Every person owning, operating, managing or controlling any hotel
shall collect the tax imposed in Sec. 17-22 hereof for the City of Schertz,
Texas. After the hotel operator has properly fIled all reports required by
Sec. 17-25 and paid to the City all amounts required to be so paid under
Sec. 17-25 for two consecutive calendar quarters, the hotel operator shall
be entitled to apply to the City for the right thereafter to retain one
percent (1%) of the hotel occupancy tax shown on a properly fIled report
as due to the City as reimbursement for the operator's administrative cost
for collecting the tax. However, as provided in Sec. 17-28, this
reimbursement may be forfeited at the discretion of the City if the hotel
operator fails to timely pay over the tax or timely fIle a report as required
by the City or fIles a false report with the City.
Sec. 17-25. Reports.
On the last day of January, April, July, and October of each year,
every person required in Section 17-24 hereof to collect the tax imposed
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herein shall fIle a report with the Tax Assessor/Collector showing the
consideration paid for all room or sleeping space occupancies in the
preceding Quarterly Period, the amount of tax collection on such
occupancies, and any other information as the Tax Assessor/Collector may
reasonably require, which report shall be in writing. Such person shall
pay the tax due on such occupancies at the time of fIling such report.
Sec. 17-26. Tax Assessor/Collector Responsibilities.
The Tax Assessor/Collector shall adopt such procedures, rules, and
regulations as are reasonably necessary to effectively collect the tax levied
herein and shall, upon request of any person owning, operating,
managing, or controlling any hotel, furnish a copy of such procedures,
rules, and regulations for the guidance of such person and to facilitate the
collection of such tax as such collection is required herein. Such
procedures, rules, and regulations shall be in writing and a copy thereof
shall be placed on fIle with the City Secretary. The Tax
Assessor/Collector shall have the authority to have access to books and
records during reasonable business hours as shall be necessary to enable
the Tax Assessor/Collector to determine the correctness of the amount due
under the provisions of this Article or to determine whether or not a
report should have been fIled and the amount, if necessary, of taxes due.
Sec. 17-27. Use of Proceeds.
The revenues derived from the tax levied by this Article shall be
used by the City of Schertz for those purposes authorized under Section
3(c) of Article 1269j-4.1 of Texas Revised Civil Statutes, as amended,
and/or Section 351.101, Texas Tax Code, as amended, or as otherwise
permitted by law.
Sec. 17-28. Penalty.
Any person who fails to fIle a report as required herein or fIles a
false report or fails to pay the Tax Assessor/Collector the tax imposed
herein when said report or payment is due shall forfeit fIve percent (5%)
of the amount due as a penalty and, after the fIrst thirty (30) days, shall
forfeit an additional fIve percent (5%) of such tax. However, such penalty
shall never be less than one dollar ($1.00). Delinquent taxes shall draw
interest at the rate of ten percent (10%) per annum, beginning sixty (60)
days from the due date.
Any person violating any of the provisions of this Article, including
hotel operators who fail to collect the tax, fail to fIle a return, fIle a false
return, or who are delinquent in their tax payment, shall be guilty of a
misdemeanor and shall, upon conviction, be fIned a sum not to exceed fIve
0200829
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hundred dollars ($500). Each twenty-four (24) hours of any such
violation shall constitute a separate offense.
The City, through its City Attorney, is hereby authorized to take
the following actions against any person required to collect the tax
imposed by this Article and pay the collection over to the City and who
has failed to fIle a report, fIled a false report, or failed to pay the tax when
due:
(a) require the forfeiture of any revenue the City allowed
the hotel operator to retain for its cost of collecting
the tax;
(b) bring suit against the hotel for non-compliance;
and/or
(c) bring suit against the hotel seeking any other
remedies provided under Texas law.
Sec. 17-29. AnminiRtrative Requirements.
The City Council may, by contract, delegate to a person, including
another governmental entity or a private organization, the management
or supervision of programs and activities funded with revenue from the
tax imposed by this Article. The City Council shall approve in writing in
advance the annual budget of the entity to which it delegates those
functions, and it shall require the entity to make periodic reports to the
City Council at least annually listing the expenditures made by the entity
of revenue from the tax provided by the City.
The entity must maintain the revenue provided by the City from
the tax in a separate bank account established for that purpose and may
not commingle that revenue with any other money or maintain it in any
other bank account.
The City may not delegate to any person or entity the management
or supervision of its convention and visitors program and activities funded
with revenue from the hotel occupancy tax other than by contract as
provided herein.
The approval by the City Council of the annual budget of the entity
to which these functions are delegated creates a fIduciary duty in the
person or entity with respect to the revenue provided by the City to the
person or entity under the contract.
0200829
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A person or entity with whom the City contracts to conduct
authorized activities shall maintain complete and accurate fInancial
records of each expenditure of hotel occupancy tax revenue made by the
person or entity and, on request of the City Council or other person, shall
make the records available for inspection and review.
Hotel occupancy tax revenue may be spent for day-to-day
operations, supplies, salaries, offIce rental, travel expenses, and other
administrative costs only if those administrative costs are incurred
directly in the promotion and servicing of expenditures hereinbefore
authorized. The portion of the total administrative costs for activities for
which hotel occupancy tax revenue may be used may not exceed the
administrative costs actually incurred in conducting the authorized
activities.
Hotel occupancy tax revenue may not be spent for travel for a
person to attend an event or conduct an activity the primary purpose of
which is not directly related to the promotion of the person's job in an
effIcient and professional manner.
SECTION 2. All ordinances and parts of ordinances in conflict with the terms
of Chapter 17, Article III, of the Code of Ordinances, as amended by this Ordinance, are
hereby repealed.
SECTION 3. This Ordinance shall be and become effective immediately upon
its fInal passage and adoption by the City Council and the publication hereof as
required by the City Charter.
APPROVED ON FIRST READING, the 5):1 day of ';7JJ~ , 1996.
PASSED, APPROVED, AND ADOPTED on the ltiti day of '7J;a-i:..eL, 1996.
(?'4~<-
Mayor, City of Schertz, Texas
ATTEST:
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City Secretary, City of Schertz, Texas
(SEAL)
0200829
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February 23, 1996
TO:
FROM:
Mayor and City Council
Kerry R. Sweatt, City Manager ~~~J!
,/
Proposed rev~s~on to Chapter 17 City Code relating
to room occupancy tax
SUBJECT:
As you know, we adopted a 7% hotel/motel occupancy tax quite
some time ago (1984). With the advent of the Ramada Inn
opening, we find some updating to be in order. The attached
proposed revision recognizes changes and additions to the
State law since our original adoption and provides authority
to contract for expenditures to other public or private groups
for authorized purposes and allows the payment of 1% of the
amount collected back to the operator as administrative cost
for collecting the tax under certain conditions (see Sec.
17-24).
While we do not currently have plans to contract with others
for conducting activity authorized under the State law, I
believe it would be appropriate to state the authority to do
so now as you are making the other amendments.
We believe the proposed changes are appropriate and recommend
adoption of the ordinance.
THE STATE OF TEXAS,
PUBLISHER'S AFFIDAVIT
, ' -I i1rL'!i. /".1
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County of Guadalupe
Before me, the undersigned authority, on tlils date personally appeared L. A. REYNOLDS
known
to me, who, being by me duly swom, on his oath deposes and says that he is the Advertising Director of
The Seguin Gazette-Enterprise, a newspaper published in said county; that a copy of the within and fore-
Sworn to and subscribed before me, this
14th
day of
times before the retum day named therein,
AN ORDINANCE n AN OROINANCE
BY. THE ctrv COUNClt BY THE CITY COUNCIL
OF THE CITY Of 9F TrE CITY OF
~SCHERTZ, TEXAS, PRO,
SCHERTZ, TEXAS, PRO- VIDING THAT THE CODE
VIOING THAT THE CODE OF ORDINANCES, CITY
OF ORDINANCES CITY OF SCHERTZ, TEXAS, BE
, 'AMENDED BY DELETING'
OF SCHERTZ, TEXAS. BE CHAPTER 17, ARTICLE III.
AMENDED BY DELETING ROOM OCCUPANCY
CHAPTER 17, ARTICLE III, TAX, AND REPLACING
ROOM OCCUPANCY THE SAME WITH ARE,
TAX, AND REPLACING VISED CHAPTER 17, AR,
THE SAME WITH A RE- TICLE III, ROOM OCCU,
VISED CHAPTER 17, AR-
TICLE III. ROOM OCCU-
PANCY TAX; REPEALING
~ ALL OROINANCES OR PANCY TAX; REPEALING
~) PARTS OF ORDINANCES ALL ORDINANCES OR
IN CONFLICT AND PRO- PARTS OF ORDINANCES,
, IN CONFLICT; AND PRD-
~, VI DING AN EFFECTIVE VI DING AN EFFECTIVE
- DATE, 'DATE.
Approved on first reading the
5th day of March, 1996,
A.D., 19..9.Ji. Norma Althouse, City Sec-
retary _"
Approved on first reading the OROINANCE 96- T-5
5th day of March, 1996, BY THE CITY COUNCIL
Norma Althouse, OF THE CITY OF
Ci~cre~ ..__,_ SCr;ERTZ, TEXAS, PRO-
n j) VIDING THAT THE CODE
'-rrt ...J. 175: ", /J /J OF ORDINANCl':S, CITY
O~ ' ~OF SCHERfZ, TEXAS, BE
AMENDED BY DELETING
CHAPTER 17, ARTICLE III,
_ ROOM OCCUPANCY
Notary Public, Guadalupe County, Te)TAX, AND REPLACING
SAME WITH A REVISED
CHAPTER 17, ARTICLE III,
ROOM OCCUPANCY
TAX; REPEALING ALLOR.
D1NANCES OR PARTS OF
ORDINANCES IN CON-
FLICT; AND PROVIDING
AN EFFECTIVE DATE,
Passed, Approved and
Adopted the 20th day of
March, 1996 ---
Norma Altho~se
City Secretary ,
11 0 Lej'" tlces
---------
going
AD
was published in said newspaper
2
such publications being on the following dates:
MARCH R, 1996
MARCH
14, 1996
and a newspaper copy of which is hereto attached.
MARCH
....~""""","
/:...$'t:,,;~,PI.JG \11
f<i:~; '-^ --'{/c\/, MARGARET l. CLARKSON
'i ; ~"~':7 . ~ NotaryPlIboc.StlteotTem
~/. \. 0,\/ j MfCOffim\SSjonEJqJiresJan.14, i993
\;:~~r"'1~:~I"'''f
1,,-.;,,;:--"'--
THE STATE OF TEXAS,
PUBLISHER'S AFFIDAVIT
, . 1 yJ.d-.i'~_1 /50
jvY'-. ~ 90 ~!hf
/~"-tv. ~7 Li,~yl1
\)/,.jtJ L,e. ,)~
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County of Guadalupe
Before me, the undersigned authority, on th'is date personally appeared L. A. REYNOLDS
known
to me, who, being by me duly swam, on his oath deposes and says that he is the Advertising Director of
The Seguin Gazette-Enterprise, a newspaper published in said county; that a copy of the within and fore-
going
AD
was published in said newspaper 2
times before the retum day named therein
Legal Notices
such publications being on the following dates:
and a newspaper copy of which is hereto attached.
~
ORDINANCE 96- T-5
BY THE CITY COUNCIL
OF THE CITY OF
SCHERTZ, TEXAS, PRO-
VIDING THAT THE CODE
OF ORDINANCES, CITY
OF SCHERTZ, TEXAS, BE
AMENDED BY DELETING
CHAPTER 17, ARTICLE III,
ROOM OCCUPANCY
TAX, AND REPLACING
SAME WITH A REVISED
CHAPTER 17, ARTICLE III,
ROOM OCCUPANCY
TAX; REPEALING ALL OR,
DINANCES OR PARTS OF
ORDINANCES IN CON-
FLICT; AND PROVIDING
AN EFFECTIVE DATE.
Passed, Approved and
Adopted the 20th day of
March, 1996,
Norma Althouse.
A.D., 19--9.6. City Secretary
MARf'H ?4, 1 qqr;
MARCH ;;>8, 1996
Sworn to and subscribed before me, this ;;>9th day of
MARCH
f-::;;~:;~:::::~-
t {.-"~, >L_,r\,~ MA~GARET L. CLARKSON
\ ~,~ . ~ f~,:'l2T'{"I,lli~~ Sla!~:)ITE.:;r;
~{ 'Ii I M/[:lJmmi~I(,n~I~~Jaf114, j991\
I,..;',; ~\,;",:;: ,~~~~_~/
'-~
fv-\O<--<-~~ of ~
Notary Public, Guadalupe County, Texas
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