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" leviedby 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 advlsewhether the hotel tax paid by the Boardmembers Is a reimbursable expense."
Members of the Texas State Board of Medical Examiners
are reimbursed for their "actualmeals, 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 (GeneralAppropriation Act).

Indlscusslng the "Hotel OccupancyTax" 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):

"Expensereimbursement Is part of the employment contract with the State. ToHonorable M. H. Crabb, M.D., Page 2 (w-797)

illustrate, an employee compensatedon a per diem basis receives the sameamount for each day's travel regardless of the price of any hotel room that might have been rented (andregardless 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 "HotelOccupancy Tax' Is one of actual expenses Incurred by
an employee tithe State, Is equally applicable to State officials. Likewise, It was held In AttorneyGeneral's Opinion ww-738 (19591:

"The second method of compensating employees travelingat the expenseof the Bank Is by reimbursementof actual expenses. Here again the Bank doesnot contract directlywith the hotel. The employee contractswith the hotel In his private capacity; the considerationfor occupancy of the hotel space Ispaid to the hotel by the employee likewise in his private capacity. The Federal Reserve Bank, by virtue of Its employment agreement, contractswith the employee to reimburse him for actual expenses Incurred; the Hotel Occupancy Tax Is one of suchexpenses. The tax is an Individual liabllltyof the
%i?%t :~a~"l?~s'~~~~~~ %"?hkh&?k' does not make it an Invalid
on the Bank." (EmphasisaddedHonorableM. H. Crabb,M.D., Page 3 (w-797)

In view of the foregoing, It Is our opinion that the "HotelOccupancy Tax"paid by a State official or State employee traveling at Stateexpense Is a reimbursable expensewithin the meaning of the current General AppropriationAct. Therefore, those State officialsand State employeeswho are entitled to reimbursement of actual expenses Incurred are authorizedto Include In their traveling expense account the "Hotel OccupancyTax"paid by them. Since members of the Texas State Board of Medical Examiners, while travelingon official business, are entitled to reimbursement for actual expenses Incurred,you are advised that the expense accounts enclosedwith your request correctly included the "Hotel OccupancyTax" paid by the members of the Texas State Board of Medical Examiners.

SUMMARY

The "Hotel Occupancy Tax" leviedby House Bill 11, Acts of the 56th Leglslature,Third Called Session, 1959, Chapter 1, constitutesa reimbursableexpense of State officials and Stateemployees entitled to receive reimbursement of actual expenseswhen Incurredwhile traveling onofficial business.

Yours very truly,

WILL WILSON Attorney Generalof Texas

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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