Hotel Occupancy Tax Information

The City Council adopted a Hotel Tax Use Policy in 2009, to provide guidance on how hotel/motel tax revenues may be spent. The Policy is in accordance of Chapter 351 of the Texas Tax Code and was updated in June 2014. The funds must be used to promote tourism and the local convention and hotel industry.

View the Hotel Tax Use Policy (PDF)

Tax Revenue Uses

In accordance with Chapter 351 of the Texas Tax Code Section 351.101(a) and the City of Hutto policy, revenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry, and that use is limited to the following:

• The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities or visitor information centers, or both
• The furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants
• Advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity
• The encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms
• Historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums:
  • At or in the immediate vicinity of convention center facilities or visitor information centers
  • Located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates
• For a municipality located in a county with a population of one million or less, expenses, including promotion expenses, directly related to a sporting event in which the majority of participants are tourists who substantially increase economic activity at hotels and motels within the municipality or its vicinity
• Subject to Section 351.1076, the promotion of tourism by the enhancement and upgrading of existing sports facilities or fields, including facilities or fields for baseball, softball, soccer, and flag football, if:
  • The municipality owns the facilities or fields
  • The municipality either:
    • Has a population of 80,000 or more and is located in a county that has a population of 350,000 or less
    • Has a population of at least 65,000 but not more than 70,000 and is located in a county that has a population of 155,000
  • The sports facilities and fields have been used, in the preceding calendar year, a combined total of more than 10 times for district, state, regional, or national sports tournaments