Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter K - HOTEL OCCUPANCY TAX › Section 3.161 - Definitions, Exemptions, and Exemption Certificate

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions. The following words and
				  terms, when used in this subchapter, shall have the following meanings, unless
				  the context clearly indicates otherwise.
(1)
				  Charitable or eleemosynary organization--A nonprofit organization devoting all
				  or substantially all of its activities to the alleviation of poverty, disease,
				  pain, and suffering by providing food, clothing, medicine, medical treatment,
				  shelter, or psychological counseling directly to indigent or similarly
				  deserving members of society with its funds derived primarily from sources
				  other than fees or charges for its services. If the organization engages in any
				  substantial activity other than the activities described in this section, and
				  those activities do not support or further the charitable purpose of that
				  entity, it will not be considered as having been organized for purely public
				  charity, and therefore, will not qualify for exemption under this provision. No
				  part of the net earnings of the organization may inure to the benefit of any
				  private party or individual other than as reasonable compensation for services
				  rendered to the organization. Some examples of organizations that do not meet
				  the definition of a charitable or eleemosynary organization are fraternal
				  organizations, lodges, fraternities, sororities, service clubs, veterans
				  groups, mutual benefit or social groups, professional groups, trade or business
				  groups, trade associations, medical associations, chambers of commerce, and
				  similar organizations. Even though not organized for profit and performing
				  services that are often charitable in nature, these types of organizations do
				  not meet the requirements for exemption under this provision.
(2) Educational organization--A nonprofit
				  organization or governmental entity whose activities are devoted solely to
				  systematic instruction, particularly in the commonly accepted arts, sciences,
				  and vocations, and has a regularly scheduled curriculum, using the commonly
				  accepted methods of teaching, a faculty of qualified instructors, and an
				  enrolled student body or students in attendance at a place where the
				  educational activities are regularly conducted. An organization that has
				  activities consisting solely of presenting discussion groups, forums, panels,
				  lectures, or other similar programs, may qualify for exemption under this
				  provision, if the presentations provide instruction in the commonly accepted
				  arts, sciences, and vocations. The organization will not be considered for
				  exemption under this provision if the systematic instruction or educational
				  classes are incidental to some other facet of the organization's activities. No
				  part of the net earnings of the organization may inure to the benefit of any
				  private party or individual other than as reasonable compensation for services
				  rendered to the organization. Some examples of organizations that do not meet
				  the requirements for exemption under this definition are professional
				  associations, business leagues, information resource groups, research
				  organizations, support groups, home schools, and organizations that merely
				  disseminate information by distributing printed publications. Entities that are
				  defined in Education Code, §
											61.003, as Texas
				  public or private "institutions of higher education" are recognized for
				  exemption under this provision. Included in the definition of "institutions of
				  higher education" is any public technical institute, public junior college,
				  public senior college or university, medical or dental unit, public state
				  college, or other agency of higher education as identified in Education Code,
				  §
											61.003. A Texas
				  private "institution of higher education" is a private or independent
				  university or college that is organized under the Texas Non-Profit Corporation
				  Act; exempt from taxation under Article VIII, §2, of the Texas
				  Constitution and §501(c)(3) of the Internal Revenue Code of 1986
				  (26 U.S.C.
				  §501); and accredited by the Southern
				  Association of Colleges and Schools. Beginning October 1, 2003, public and
				  private "institutions of higher education" from other states or countries do
				  not meet the requirements for exemption under this provision.
(3) Hotel--Any building or buildings in which
				  members of the public obtain sleeping accommodations for a consideration. The
				  term includes, in addition to the buildings listed in Tax Code, §
											156.001, manufactured
				  homes, skid mounted bunk houses, residency inns, condominiums, cabins, and
				  cottages.
(4) Permanent Resident--A
				  person who has the right to use or occupy a room or space in a hotel for at
				  least 30 consecutive days without interruption. A person may be an individual,
				  organization, or entity.
(5)
				  Private Club--An organization that provides members entertainment, recreation,
				  sport, dining, social facilities, or other significant club amenities and
				  assesses membership dues, initiation fees, and other charges, assessments, and
				  fees for special privileges or status not available to the general public. The
				  rental of a room is insignificant to the purpose or purposes of the
				  organization and members pay the membership dues, initiation fees, and other
				  charges, assessments, and fees not just for the right to rent a room but for
				  other significant club amenities.
(6) Religious organization--A nonprofit
				  organization that is an organized group of people regularly meeting for the
				  primary purpose of holding, conducting and sponsoring religious worship
				  services, according to the rights of their sect. The organization must be able
				  to provide evidence of an established congregation showing that there is an
				  organized group of people regularly attending these services. An organization
				  that supports and encourages religion as an incidental part of its overall
				  purpose, or one whose general purpose is furthering religious work or
				  instilling its membership with a religious understanding, will not qualify for
				  exemption under this provision. No part of the net earnings of the organization
				  may inure to the benefit of any private party or individual other than as
				  reasonable compensation for services rendered to the organization. Some
				  examples of organizations that do not meet the requirements for exemption under
				  this definition are conventions or associations of churches, evangelistic
				  associations, churches with membership consisting of family members only,
				  missionary organizations and groups who meet for the purpose of holding prayer
				  meetings, bible study or revivals.