2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle D - Local Hotel Occupancy Taxes › Chapter 351 - Municipal Hotel Occupancy Taxes › Subchapter A. Imposition and Collection of Tax › Section 351.004. Tax Collection

Sec. 351.004.  TAX COLLECTION.  (a)  The municipality may bring suit against a person who is required to collect the tax imposed by this chapter and pay the collections over to the municipality, and who has failed to file a tax report or pay the tax when due, to collect the tax not paid or to enjoin the person from operating a hotel in the municipality until the tax is paid or the report filed, as applicable, as provided by the court's order.  In addition to the amount of any tax owed under this chapter, the person is liable to the municipality for:
(1)  the municipality's reasonable attorney's fees;
(2)  the costs of an audit conducted under Subsection (a-1)(1), as determined by the municipality using a reasonable rate, but only if:
(A)  the tax has been delinquent for at least two complete municipal fiscal quarters at the time the audit is conducted; and
(B)  the municipality has not received a disbursement from the comptroller as provided by Section 156.2513 related to the person's concurrent state tax delinquency described by Section 351.008;
(3)  a penalty equal to 15 percent of the total amount of the tax owed if the tax has been delinquent for at least one complete municipal fiscal quarter; and
(4)  interest under Section 351.0042.
(a-1)  If a person required to file a tax report under this chapter does not file the report as required by the municipality, the municipality may determine the amount of tax due under this chapter by:
(1)  conducting an audit of each hotel in relation to which the person did not file the report as required by the municipality; or
(2)  using the tax report filed for the appropriate reporting period under Section 156.151 in relation to that hotel.
(a-2)  If the person did not file a tax report under Section 156.151 for that reporting period in relation to that hotel, the municipality may estimate the amount of tax due by using the tax reports in relation to that hotel filed during the previous calendar year under this chapter or Section 156.151.  An estimate made under this subsection is prima facie evidence of the amount of tax due for that period in relation to that hotel.
(a-3)  The authority to conduct an audit under this section is in addition to any other audit authority provided by statute, charter, or ordinance.  A municipality may directly perform an audit authorized by this section or contract with another person to perform the audit on an hourly rate or fixed-fee basis.  A municipality shall provide at least 30 days' written notice to a person who is required to collect the tax imposed by this chapter with respect to a hotel before conducting an audit of the hotel under this section.
(b)  Except as provided by Subsection (b-1), a municipality must bring suit under this section not later than the fourth anniversary of the date the tax becomes due.
(b-1)  The limitation provided by Subsection (b) does not apply and a municipality may bring suit under this section at any time if:
(1)  with intent to evade the tax, the person files a false or fraudulent report with the municipality; or
(2)  the person has not filed a report for the tax with the municipality.
(c)  A municipality by ordinance may authorize misdemeanor punishment for a violation of an ordinance adopted under this chapter.
(d)  The remedies provided by this section are in addition to other available remedies.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1110, Sec. 2, eff. Oct. 1, 1989;  Acts 1993, 73rd Leg., ch. 259, Sec. 1.
Amended by:
Acts 2005, 79th Leg., Ch. 488 (H.B. 352), Sec. 1, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 1152 (H.B. 2048), Sec. 2, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 944 (H.B. 1724), Sec. 1, eff. September 1, 2013.