ORD 2006-47TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2006-47
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS,
AMENDING THE CODE OF ORDINANCES OF THE TOWN OF
TROPHY CLUB BY ADDING CHAPTER XV, ENTITLED
"TAXATION", ARTICLE I, ENTITLED "HOTEUMOTEL
OCCUPANCY TAX", ADOPTING AND LEVYING A TAX ON THE
OCCUPANCY OF HOTEL ROOMS AT THE MAXIMUM RATE
AUTHORIZED PURSUANT TO CHAPTER 351 OF THE TEXAS
TAX CODE AS AMENDED; PROVIDING FOR THE
INCORPORATION OF PREMISES; PROVIDING FOR THE
ADOPTION OF ARTICLE I OF CHAPTER 15 BY PROVIDING
DEFINITIONS; PROVIDING FOR THE LEVY OF THE TAX;
PROVIDING FOR EXEMPTIONS AND REFUNDS; PROVIDING
FOR REPORTS AND RECORDS; PROVIDING FOR TAX
COLLECTION; PROVIDING FOR USE OF TAX REVENUE;
PROVIDING THAT ANY PERSON WHO VIOLATES CHAPTER
XV, ARTICLE I, SHALL BE GUILTY OF A MISDEMEANOR
PUNISHABLE BY A PENALTY NOT TO EXCEED FIVE
HUNDRED DOLLARS ($500.00) AND THAT EACH DAY THE
VIOLATION IS ALLOWED TO EXIST OR CONTINUES TO EXIST
SHALL BE A SEPARATE OFFENSE FOR EACH VIOLATION;
PROVIDING A SAVINGS AND REPEALER CLAUSE;
PROVIDING SEVERABILITY; PROVIDING FOR ENGROSSMENT
AND ENROLLMENT; PROVIDING FOR PUBLICATION; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town of Trophy Club (hereinafter referred to as "Town") is
a Home Rule Municipality empowered by the Texas Constitution and state law to
levy taxes for lawful purposes; and
WHEREAS, Section 351.002 of the Texas Tax Code authorizes a
municipality to adopt an ordinance to impose a tax on a person who, under
contract or agreement, pays for the use or possession or for the right to use or
possession of a room in a hotel; and
WHEREAS, the Town Council has determined it necessary and
appropriate to levy a tax on the occupancy of a hotel room and to use the
revenues from such tax for lawful purposes pursuant to Chapter 351 of the Texas
Tax Code, as amended.
SECTION 1.
INCORPORATION OF PREMISES
The above and foregoing premises are true and correct and are incorporated
herein and made a part hereof for all purposes.
SECTION 2.
AMENDMENT - ADOPTION OF CHAPTER XV, ARTICLE 1
2.01 Article I. entitled "Hotel/Motel Occupancy Tax" of Chapter XV, entitled
"Taxation" of the Code of Ordinances of the Town of Trophy Club is hereby
adopted and shall read in its entirety as follows:
"1.01 DEFINITIONS
As used in this Chapter, the following words, terms, and phrases are
defined as follows:
A. Chief Financial Officer means the Finance Director for the Town of
Trophy Club or his or her designee.
B. Hotel means a building in which members of the public obtain sleeping
accommodations for consideration. The term includes a hotel, motel, tourist
home, tourist house, tourist court, hostel, lodging house, inn, rooming house, or
bed and breakfast. The term does not include:
(1) a hospital, sanitarium, or nursing home; or
(2) a dormitory or other housing facility owned or leased and operated by
an institution of higher education or a private or independent institution
of higher education as those terms are defined by Section 61.003,
Education Code, used by the institution for the purpose of providing
sleeping accommodations for persons engaged in an educational
program or activity at the institution.
C. Interruption of payment means a breach of the obligation to make
continuous timely payment for one or more days or parts of a day within a period
of thirty (30) consecutive days of occupancy.
D. Permanent Resident means an occupant(s) whose use, possession or
whose right to use or possession of a hotel sleeping room extends for at least
thirty (30) consecutive days and where there is no interruption of payment for the
period and where prior to using or possessing the hotel sleeping room, the
occupant(s) have executed a written agreement for use or possession of a hotel
sleeping room for a period of thirty (30) consecutive days as required by the
Texas State Comptroller's Office.
E. Person means any individual, company, firm, corporation, association or
legal entity owning, operating, managing or controlling any hotel as defined
herein.
F. Quarterly Period means the regular calendar quarters of the year, the
first quarter being composed of the months of January, February, and March,
and the second quarter being the months of April, May and June, the third
quarter being the months of July, August and September, and the fourth quarter
being the months of October, November and December.
G. Revenue includes any interest derived from the revenue or tax.
1.02 LEVY OF TAX
A. Tax Rate. There is hereby levied a tax upon the cost of occupancy of any
room ordinarily used as a sleeping room furnished by any hotel within the Town
of Trophy Club where such cost of occupancy is at the rate of $2.00 or more
each day, such tax to be equal to the maximum tax as is now or as hereafter
permitted by State law.
B. Room Price. The price of a room in a hotel does not include the cost of
food served by the hotel, the cost of personal services performed by the hotel for
the person, except for those services related to cleaning and readying the room
for use or possession, any tax assessed by any other governmental agency for
occupancy of the room, or the cost of any other products or services not included
in or allowed as a part of the price of a room.
C. Permanent Resident Excluded. The tax does not apply to a person who
is a permanent resident as defined herein.
D. Extraterritorial Jurisdiction. Pursuant to state law, the tax authorized by
this Chapter shall be imposed on all hotels located within the extraterritorial
jurisdiction of the Town of Trophy Club; provided that the combined rate of state,
county, and municipal hotel occupancy taxes in the extraterritorial jurisdiction
does not exceed fifteen (15) percent of the price paid for a room in the hotel.
E. Collection and Remittance. The revenue obtained by a hotel as a result
of this tax shall be collected by the hotel and paid to the Town monthly. A report
shall be filed with the Town in the form required by the Chief Financial Officer to
accurately reflect the amount of taxes owed and revenue obtained. The tax and
report shall be submitted to the Town on or before 5:00 p.m. on the twentieth
(20th) day following the last day of each reporting period. The Chief Financial
Officer shall have the authority to make such rules and regulations as are
necessary to effectively report and collect, the tax, penalty and/or interest levied
by this Chapter and state law. If the report is filed or tax is paid after the due
date required by this Chapter, in addition to the amount of tax due hereunder, a
penalty shall be imposed as follows: (1) If the report and/or tax are received by
the Town within ten (10) days following the due date, a penalty of ten percent
(10%) of the amount due shall be paid to the Town. (2) If the report and/or tax
are received by the Town on or after the eleventh (11th) day after the due date, a
penalty of fifteen percent (15%) of the amount due shall be paid to the Town.
F. Collection Procedures on Purchase of Hotel. If a person who is liable
for the payment of a tax under this Chapter is the owner of a hotel and sells the
hotel, the successor to the seller or the seller's assignee shall withhold an
amount of the purchase price sufficient to pay the amount due until the seller
provides a receipt by the Town's Chief Financial Officer showing that the amount
has been paid or a certificate showing that no tax is due. The Town's Chief
Financial Officer shall issue the certificate or statement not later than the 60th day
after the date that he/she receives the request. Failure of the Chief Financial
Officer to timely provide the certificate or statement required by this section shall
release the purchaser form the obligation to withhold the purchase price or pay
the amount due. The purchaser of a hotel who fails to withhold an amount of the
purchase price as required by this Chapter and state law is liable to the Town for
the amount required to be withheld to the extent of the value of the purchase
price.
1.03 EXEMPTIONS AND REFUNDS
A. Exemptions. This Chapter does not impose a tax on any of the following
occupants:
L Qualifying Religious, Charitable or Educational entities. A
corporation or association that is organized and operated exclusively
for a religious, charitable, or educational purpose if no part of the net
earnings of the corporation or association inure to the benefit of a
private shareholder or individual. For purposes of this exemption, a
public or private institution of higher education is organized and
operated exclusively for an educational purpose only if the institution is
defined as a Texas institution of higher education or as a Texas private
or independent institution of higher education under any subdivision of
Section 61.003, Texas Education Code, as amended.
ii. United States Government. The United States Government agencies
and their officers or employees when traveling or otherwise engaged in
the course of official duties for the governmental entity.
iii. Military Personnel. Military personnel traveling on official military
business.
iv. Qualifying State of Texas entities. The state of Texas, or any
agency, institution (excluding state educational institutions), board or
commission of the State of Texas and their officers or employees when
traveling or otherwise engaged in the course of official duties.
Notwithstanding the foregoing, a state governmental entity described
by this section shall pay the tax imposed by this Chapter but is entitled
to a refund of the tax paid.
V. Qualifying State Officer or Employee. A state officer or employee of
a state governmental entity described by section (d) above who is
entitled to reimbursement for the costs of lodging and for whom a
special provision or exception to the general rate of reimbursement
under the General Appropriates Act applies and who is provided with
photo identification verifying the identity and exempt status of the
person is exempt from the payment of the tax.
vi. Diplomatic Personnel. Diplomatic personnel who present a tax
exemption card issued by the United States Department of State.
vii. Occupants Qualifying as Permanent Residents. Occupants whose
use, possession or whose right to use or possession of a hotel
sleeping room extends for at least thirty (30) consecutive days and
where there is no interruption of payment for the period as defined
herein, and where such person has complied with the requirement to
execute a written agreement for thirty (30) days of consecutive use
prior to commencing such use or possession as required by the Texas
State Comptroller.
viii. Exemption Certificate Received in Good Faith. The right to use or
possess a room in a hotel is exempt from taxation under this Chapter if
the person required to collect the tax receives, in good faith from a
guest, an exemption certificate stating the following qualifications for
an exemption: the person is a state officer or employee of a state
governmental entity described in subsection (d) above for whom a
special provision or exception to the general rate of reimbursement
under the General Appropriations Act applies and who is provided with
photo identification verifying the identity and exempt status of the
person is not required to pay the tax and is not entitled to a refund.
B. Refunds. Refunds are allowed as provided by state law and shall be
subject to the following regulations:
i. Time Limitation. A governmental entity claiming a refund must file a
refund claim with the Town only for each calendar quarter for all
reimbursements accrued during that quarter. Claims filed outside of
this time period will not be reimbursed.
ii. Refund Form. In order to receive a refund, the governmental entity
entitled to the refund shall file a refund claim on a form provided by the
Town and containing the information required by the Town as
prescribed by the rules of the state comptroller.
1.04 REPORTS / RECORDS
A. Records / Audit. Every hotel within the Town shall keep and maintain
accurate records of the consideration and hotel occupancy tax paid by the
occupant of each sleeping room in the hotel. Such records shall include, but not
be limited to, guest folios, tax exemption certificates, and any original documents
such as posting ledgers and rate and stay adjustment reports, and any other
documents necessary to provide the information on the Town Hotel Occupancy
Tax reporting form required by the Chief Financial Officer and the State of Texas
form for reporting hotel occupancy tax to the Comptroller's Office,. These reports
may be retained in any retrievable format, including but not limited to micro form
and shall be maintained for a period of not less than four (4) years; and shall be
available for inspection upon request by any employee, agent, officer or
representative of the Town at all reasonable times. Any adjustments or
allowances made or granted shall be reported to the Town of Trophy Club on a
form provided by the Chief Financial Officer.
B. Compliance. It shall be unlawful for any person to fail to perform an act
required by this Chapter, including but not limited to compliance with the
requirements to collect, pay and accurately report, taxes as required by this
Chapter and state law.
1.05 TAX COLLECTION
A. Suit. The Town Attorney or other attorney acting on behalf of the Town is
authorized to bring suit against a person who is required to collect the tax
imposed by this Chapter and pay the collections over to the Town and who has
failed to file a tax report or pay the tax when due in order to collect the tax not
paid or may enjoin the person from operating a hotel in the Town until the tax is
paid or the report filed in accordance with a Court order. In addition to the
amount of any tax owed under this Chapter, the person is liable to the Town for:
I. The Town's reasonable attorney's fees;
ii. The costs of an inspection or an audit conducted under Section
1.04 or this section as determined by the Town using a reasonable
rate, but only if the tax has been delinquent for at least two
complete municipal fiscal quarters at the time the audit is
conducted; and
iii. A penalty equal to fifteen (15) percent of the total amount of the tax
owed.
B. Audit. If the person required to file a tax report under this Chapter does
not file the report as required by the Town, the Town Attorney or other attorney
acting for the Town may determine the amount of tax due under this Chapter by:
I. Conducting an audit of each hotel in relation to which the person
did not file the report as required by the Town; or
ii. Using the tax report filed for the appropriate reporting period under
Section 156.151 of the Texas Tax Code, as amended.
The authority to conduct an audit under this section is in addition to any other
audit authority provided by statute, charter, or ordinance.
C. Statute of Limitations. A limitation period relating to the time allowed to
assess taxes and bring a suit to collect taxes does not apply to a tax imposed
under this Chapter or to a suit brought under this section.
D. Failure to File Report. If a person fails to a file a tax report as required
under state law or this Article for the required reporting period, the Town Attorney
or other attorney acting for the Town may estimate the amount of tax due by
using the tax reports in relation to the hotel that were filed during the previous
calendar year under this Ordinance or state law. An estimate made under this
section is prima facie evidence of the amount of tax due for that period in relation
to that hotel.
1.06 USE OF TAX REVENUE
A. Revenue from 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:
(i) ConventionNisitor Facilities. The acquisition of sites for
the construction, improvement, enlarging, equipping, repairing,
operation, and maintenance of convention center facilities or visitor
information centers, or both;
(ii) Furnishings. The furnishing of facilities, personnel, and
materials for the registration of convention delegates or registrants;
(iii) Advertising and Promotions. Advertising and conducting
solicitations and promotion programs to attract tourists and
convention delegates or registrants to the town or its vicinity;
(iv) Arts. 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;
(v) Historic Purposes. 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:
a. At or in the immediate vicinity of convention center
facilities or visitor information centers; or
b. Located elsewhere in the Town or its vicinity that
would be frequented by tourists and convention delegates;
(vi) Other. Other qualifying uses as set forth in Section 351.101
of the Tax Code, as amended, or other applicable law.
B. Daily Operations. Hotel occupancy tax revenue spent for a purpose
authorized by this Section 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
expenditures authorized under Section 1.06(A) above.
C. Allocation of Revenues. Allocation of tax revenues for the purposes
specified in Section 1.06 (A) (iii) above shall be in an amount not less than the
amount of revenue received by the Town from the tax at a rate of one (1) percent
of the cost of a room.
1.07 CRIMINAL PENALTY
Any Person who violates this Chapter shall be guilty of a misdemeanor
and each day the violation is allowed to exist or continues to exist shall be a
separate offense. Each such offense shall be punishable by a fine not to exceed
$500.00. The penalties provided in this ordinance are cumulative of any other
remedies and/or actions for collection available to the Town by law."
SECTION 3.
SAVINGS AND REPEALER
That this Ordinance shall be cumulative of all other Ordinances of the
Town affecting taxation and shall not repeal any of the provisions of such
Ordinances except in those instances where provisions of those Ordinances are
in direct conflict with the provisions of this Ordinance; whether such Ordinances
are codified or uncodified, and all other provisions of the Ordinances of the Town
of Trophy Club, codified or uncodified, not in conflict with the provisions of this
Ordinance, shall remain in full force and effect. Notwithstanding the foregoing,
any complaint, action, cause of action or claim which prior to the effective date of
this Ordinance has been initiated or has arisen under or pursuant to such
repealed Ordinance(s) shall continue to be governed by the provisions of that
Ordinance and for that purpose the Ordinance shall be deemed to remain and
continue in full force and effect.
SECTION 4.
SEVERABILITY
If any section, article, paragraph, sentence, clause, phrase or word in this
Ordinance, or application thereof to any person or circumstance, is held invalid or
unconstitutional by a Court of competent jurisdiction, such holding shall not affect
the validity of the remaining portions of the Ordinance, and the Town Council
hereby declares it would have passed such remaining of the Ordinance despite
such invalidity, which remaining portions shall remain in full force and effect.
SECTION 5.
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club is hereby directed to
engross and enroll this Ordinance by copying the exact Caption and Effective
Date clause in the minutes of the Town Council of the Town of Trophy Club and
by filing this Ordinance in the Ordinance records of the Town and by amending
the Code of Ordinances to reflect the changes adopted herein by Council.
SECTION 6.
PENALTY
It shall be unlawful for any person to violate any provision of this
Ordinance, and any person violating or failing to comply with any provision hereof
shall be fined, upon conviction, in an amount not more than Five Hundred Dollars
($500.00), and a separate offense shall be deemed committed each day during
or on which a violation occurs or continues.
SECTION 7.
PUBLICATION
The Town Secretary of the Town of Trophy Club is hereby directed to the
Caption, Penalty Clause, and Effective Date Clause of this Ordinance as required
by Section 52.011 of the Texas Local Government Code, Charter, and other
applicable law.
SECTION 8.
EFFECTIVE DATE
This Ordinance shall take effect from and after its date of passage and
publication in accordance with law, and it is so ordained.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club,
Texas, this the 20th day of November, 2006.
TAOoY'
ATTEST: i
\ rLG'Ry i 1ga`r
Mayor
Town of Trophy Club, Texas
L
Town Secretary
Town of Trophy Club, Texas
[SEAL]
APPROVED AS TO FORM:
Town Attorney
Town of Trophy Club, Texas
TOWN OF TROPHY CLUB
HOTEL OCCUPANCY TAX REPORT INSTRUCTIONS
Who Must File: You must file this report if you are a sole owner, partnership, corporation or other
organization that owns, operates, manages or controls any hotel or motel in the Town of Trophy
Club. Complete and detailed records must be kept of all receipts reported and exemptions or
reimbursements claimed so that a city accountant can verify the reports. Failure to file this report
and pay applicable tax may result in fines and penalties.
When To File: The reporting period is for each calendar month of the year. Timely reports must
be submitted so they are received by SPM on or before the 20th of the month following the
reporting period. The report must be filed for every period even if you have no amount subject to
tax or no tax due. Enter "0" if no receipts were collected for this reporting period. If the due date
falls on a Saturday, Sunday or city holiday, the next business day will be the due date.
For Assistance: The Town of Trophy Club Hotel Occupancy Tax Report and instructions may be
obtained through the Town's website, www.trophyclub.org, by clicking on Government and then
Forms & Publications. You may call (682) 831-4660 for assistance.
General Instructions: Please type the information on the report and print it before mailing to the
Town, along with the remittance. You may print the information on the report, but it must be in ink
only. Complete all applicable items of the report. You must sign and date the report before
mailing. A copy of the concurrent "Texas Hotel Occupancy Tax Report" filed with the State
Comptroller of Public Accounts must be attached to the Town's report. Make check payable
to Town of Trophy Club, and mail forms and check to: Town of Trophy Club, Attn: Finance, 100
Municipal Drive, Trophy Club, TX 76262.
SPECIFIC INSTRUCTIONS
Line (A) Enter the total amount of room receipts for the month for location shown. Enter
"0" if no taxable receipts were collected.
Line (B) For explanations of tax exemptions, please refer to the Texas Comptroller's Hotel
Occupancy Tax Exemptions Publication and Town Ordinance 2006 -XX -
Line (C) Subtract line B from Line A.
Line (D) The Town of Trophy Club Hotel Occupancy Tax rate is 7%.
Line (E) Multiply Line C by 7%.
Line (F) If the report is filed or tax paid after the due date, enter penalty (1-10 days late
equals 10% of Line E; on or after 11th day equals 15% of Line E).
Line (G) Add lines E and F.
Line (H) Enter the number of room days rented for the month.
Line (1) Enter the number of rooms available for the month.
Line (J) Enter the number of days in the month.
Line (K) Divide line H by the product of line I and J. Report the percentage using two
decimal places (i.e., 75.85%).
TOWN OF TROPHY CLUB
HOTEL OCCUPANCY TAX REPORT
A copy of concurrent "Texas Hotel Occupancy Tax Report" Itled with Texas Comptroller must be attached to Town report.
Hotel Name:
Owner Name:
Location Address:
Mailing Address (If Different):
Federal ID Number:
For Period Ending:
Report Due Date:
Gross Receipts For Month:
(A)
Less Tax Exemptions:
(B)
Total Taxable Receipts (A- B):
(C)
Tax Rate:
(D) 0.07
Tax Due(C'D):
(E)
Penalty:
(F)
Total Due To Town (E+F):
(G)
Number of Room Days Rented:
(H)
Number of Roams Available:
(1)
Number of Days In Month:
(J)
Monthly Occupancy Rate (H/[I'J])
(K)
I declare, under the penalties for filing false reports, that this return (including any accompanying schedules and
statements) has been examined by me and to the best of my knowledge and belief Is a true, correct, and complete report.
If the report Is prepared by other than the taxpayer, his/her declaration Is based on all the Information relating to the
matters required to be reported in this report of which he/she has knowledge.
Print Name & Title
Signature
Telephone Number
Make Check Payable To: Town of Trophy Club, Attn: Finance
100 Municipal Drive, Trophy Club, TX 76262
MUST BE RECEIVED BY 5PM ON OR BEFORE THE 20TH FOLLOWING REPORT PERIOD
Revised 1112006