Hotel Occupancy Tax

Every person owning, operating, managing, or controlling any hotel or collecting payment for occupancy in any hotel shall collect the Hotel Occupancy Tax from their guests for the City of Allen. The City of Allen’s Hotel Occupancy Tax rate is 7 percent. The City’s tax is in addition to the 6 percent rate imposed by the State of Texas, which must be remitted separately to the State.

A Hotel is a building in which members of the public obtain sleeping accommodations for a cost of $2 of more each day.  This includes a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, rooming house, or bed and breakfast. It does not include hospitals, sanitariums, or nursing homes.

The revenue derived from the Hotel Occupancy Tax is used to promote tourism and the convention and hotel industry in Allen.

Hotel/Motel Occupancy Tax Form

Hotel/Motel Exemption Form

Sec. 2-6 - Hotel occupancy tax levied

Hotel/Motel Occupancy Tax Instructions

Reporting Requirements

A report must be filed with the City if you are a sole owner, partnership, corporation or other organization that owns, operates, manages or controls any hotel or motel in the City of Allen, TX.

When to file

Effective January 1, 2019 a Hotel Occupancy Tax report must be submitted on or before the 20th of the month following the monthly reporting period. A payment in the amount of the tax collected must accompany this report for each calendar month of the year. If the due date falls on a Saturday, Sunday, or city holiday, the next business day will be the due date.

Please Note:  A report must be filed even if no tax is due.  Penalties and interest will apply to late payments.

  • 1 to 30 days late: pay all taxes collected + 5% penalty + 12% annual interest
  • 31 to 90 days late: pay all taxes collected + 10% penalty + 12% annual interest (compounded monthly)
  • More than 1 fiscal quarter late: pay all taxes collected + 15% penalty + 12% annual interest (compounded monthly)

Exemption Guidelines

Employees and representatives of nonprofit religious, charitable, or educational organizations are EXEMPT from the STATE hotel tax when traveling on official business of the organization. The exemption DOES NOT COVER local hotel taxes, which must be paid. (State Comptrollers Rule 3.161)

Certain non-profit entities are exempt from local taxes; they must provide a letter from the state comptroller’s office that authorizes their exempt status. If the nonprofit is unable to provide the letter, the hotel may look on the Comptroller’s website for organizations that have been issued a letter of hotel tax exemption.

Any exemption claimed shall be supported by a signed hotel occupancy tax exemption certificate.

The following are not exempt from the local tax:

  • Educational institutions (including State of Texas colleges and universities);
  • Religious and charitable organization;
  • Local government entities;
  • Contract employees of exempt organizations.

The following are exempt from the local tax:

  • The United States government officers or employees when traveling on official business;
  • Military personnel traveling on official military business;
  • Certain State of Texas employees (judicial officials, heads of agencies and members of State boards and commissions of the State of Texas) when traveling on official business;
  • Diplomatic personnel who present a tax exemption card issued by the United States Department of State;
  • Occupants whose use or possession extends thirty (30) consecutive days or longer.

State Reporting Requirements

Per Senate Bill 1221, an annual report is produced each year to show the breakdown of revenue and expenditures for the fiscal year.