Hotel Occupancy Tax Funds-Part I of III

January 15, 2013

The Hotel Occupancy Tax (?HOT?) is a municipal tax charged to individuals who stay at Hotels within a city or it?s Extra-Territorial Jurisdiction. The HOT tax is levied by Cities pursuant to state statute. For most cities in Texas, this tax is capped at 7.0 % of the price paid for a room in a hotel. The price paid for a room does not include the cost of food served…

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City Contracts and Arbitration

January 15, 2013

It is recommended that cities do not agree to arbitration, either voluntarily or by contract. First, this may result in protections provided by state law from being applied on behalf of the city. Second, an arbitrator may not have experience in municipal law, and may apply equitable principles that would not apply in a court of law. For instance, state law will often provide cities extra protection against damages and…

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