Honorable M. H. Crabb, M.D. Opinion No. WW-797 

Secretary, Texas State Board 

of Medlcal Examiners Re: Whether the "Hotel 

Medical Arts EuIldIng Occupancy Tax" levied by 

Fort Worth, Texas House Bill 11, Acts of 

the 56th Legislature, 

Third Called Session, 

1959, Chapter 1, constitutes a reimbursable expense under the provisions 

of Section 36 of Article 

V of House Bill 4, Acts of 

the 56th Legislature, 

Third Called Session, 

1 59, Chapter 23, page 

422 (oe neral ApproprlaDear Dr. Crabb: tion Act). 

You have requested an opinion on the following question: 

"mclosed are expense accounts of 

seven Board members, which were returned 

to us due to hotel tax being paid. Please 

advlse whether the hotel tax paid by the 

Board members Is a reimbursable expense." 

Members of the Texas State Board of Medical Examiners 

are reimbursed for their "actual meals, lodging, and Incidental 

expenses when traveling on official business either in or out 

of the State." House Bill 4, Acts of the 56th Legislature, Third 

Called Session, 1959, Chapter 23, page 442, Article V, Section 

36 (General Appropriation Act). 

In dlscusslng the "Hotel Occupancy Tax" levled by House 

Bill 11, Acts of the 56th Legislature, Third Called Session, 

1959, Chapter 1, It was held In Attorney Ckneral’s Opinion 

W-721 (1959): 

"Expense reimbursement Is part of the 

employment contract with the State. To 
Honorable M. H. Crabb, M.D., Page 2 (w-797) 

illustrate, an employee compensated on a 

per diem basis receives the same amount 

for each day's travel regardless of the 

price of any hotel room that might have 

been rented (and regardless of whether 

a hotel room was actually rented) In the 

course of such travel. Obviously In this 

situation there Is no direct connection 

It Is our oJ?nIon that the above holding, that the 

"Hotel Occupancy Tax' Is one of actual expenses Incurred by 

an employee ti the State, Is equally applicable to State officials. 

Likewise, It was held In Attorney General's Opinion 

ww-738 (1959 1: 

"The second method of compensating 

employees traveling at the expense of 

the Bank Is by reimbursement of actual 

expenses. Here again the Bank does not 

contract directly with the hotel. The 

employee contracts with the hotel In his 

private capacity; the consideration for 

occupancy of the hotel space Is paid 

to the hotel by the employee likewise 

in his private capacity. The Federal 

Reserve Bank, by virtue of Its employment agreement, contracts with the employee to reimburse him for actual expenses Incurred; the Hotel Occupancy 

Tax Is one of such expenses. The tax 

is an Individual liablllty of the 

%i?%t :~a~"l?~s'~~~~~~ %"?hkh&?k' 

does not make it an Invalid 

on the Bank." (Emphasis added 
Honorable M. H. Crabb, M.D., Page 3 (w-797) 

In view of the foregoing, It Is our opinion that the 

"Hotel Occupancy Tax" paid by a State official or State employee 

traveling at State expense Is a reimbursable expense within the 

meaning of the current General Appropriation Act. Therefore, 

those State officials and State employees who are entitled to reimbursement of actual expenses Incurred are authorized to Include 

In their traveling expense account the "Hotel Occupancy Tax" paid 

by them. Since members of the Texas State Board of Medical Examiners, while traveling on official business, are entitled to 

reimbursement for actual expenses Incurred, you are advised that 

the expense accounts enclosed with your request correctly included 

the "Hotel Occupancy Tax" paid by the members of the Texas State 

Board of Medical Examiners. 

SUMMARY 

The "Hotel Occupancy Tax" levied by 

House Bill 11, Acts of the 56th Leglslature, Third Called Session, 1959, 

Chapter 1, constitutes a reimbursable expense of State officials and State employees entitled to receive reimbursement 

of actual expenses when Incurred while 

traveling on official business. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

JR:mfh:zt 

APPROVED: 

OPINION COMMITTEE 

W.V.Geppert, chairman 

Robert T. Lewis 

Virgil Pulliam 

Jerry H. Roberts 

John Reeves 

Assistant 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Leonard Passmore