State Hotel Occupancy Tax Exemption - Texas State agencies, including institutions of higher education, are exempt from paying the Texas state hotel occupancy tax. (Tax Code Sec. 156.102) However, educational organizations are required to pay city and county hotel occupancy taxes.

In order to qualify for exemption, the employee must be traveling on State business. An employee traveling for personal reasons is not exempt from the hotel occupancy tax. In order to claim the exemption, the employee must present a Texas Hotel Tax Exemption Certificate (Form 12-302) to the hotel at the time of registration. The form can be obtained from the Tax Specialist or online at the following website, http://www.cpa.state.tx.us/taxinfo/taxforms/12-302.pdf. The hotel operator does have the right to request a government identification card, business card or other form of identification to verify the exemption claimed. Therefore, as a Texas State faculty or staff member, it is recommended that you travel with your Texas State identification card.

As an educational organization, Texas State is prohibited from reimbursing an employee who fails to present a properly completed exemption certificate.

If an employee presents a properly completed exemption certificate to a commercial lodging establishment and the establishment refuses to honor the certificate, Texas State will reimburse the employee all hotel occupancy taxes (subject to the limitations set forth in the State of Texas Travel Allowance Guide Sec. 3.14(C)) charged by the establishment. The employee must attach to his or her travel voucher, a signed statement document the hotel's refusal to accept the Exemption Certificate. The Travel Department will then provide the State Comptroller's office with the name of each establishment within Texas refusing to honor a properly completed and presented exemption certificate.

Responsible Parties

Major responsibilities for routine assignments associated with this PPS include the following: