State Hotel Occupancy Tax Required - The University is not required to charge room occupancy tax to students or other educational groups utilizing the University's residence halls. However, the room occupancy tax of 13% [6% payable to the State (Texas Tax Code Sec. 156.052); 7% payable to the City of San Marcos (City Code of San Marcos Sec. 78.102)] must be charged for overnight guests of students, such as friends, parents, etc.

Hotel occupancy taxes are not imposed on guests who occupy a room for at least 30 consecutive days. (Texas Tax Code 156.101) Guests who inform the University at check-in of their intention to stay 30 consecutive days are exempt from the beginning of their stay. Guests who do not advise the University of their intentions must pay the occupancy tax for the first 30 days, but are exempt thereafter. The University will consider only written statements as notification of a guest's intentions.

Responsible Parties - Residence Life is responsible for collecting occupancy tax on all taxable room rentals, per 02.02. The cash receipt will reflect separately the nightly room rate and tax charged. The occupancy tax collected will be recorded as "taxes payable."

The Director of Auxiliary Services is authorized to determine whether special events held at the University are subject to the tax.

The General Accounting Office will remit the appropriate amount of tax to each taxing authority. The General Accounting Office will account for all tax collections and remittances.

Remittance and Reported Periods

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