Hotel Occupancy and Short Term Rental Tax Info

All entities providing lodging services are asked to complete a Hotel & Lodging Registration form.

State:

Hotel owners, operators or managers must collect state hotel occupancy tax from their guests who rent a room or space in a hotel costing $15 or more each day.  The tax applies not only to hotels and motels, but also to bed and breakfasts, condominiums, apartments and houses.

The state hotel occupancy tax rate is 0.06 (6%) of the cost of a room.

More information regarding state hotel occupancy taxes, including penalties, exemptions, payment requirements and more can be found on the Texas Comptroller of Public Accounts Hotel Occupancy Tax website.


Local:

Hotel Occupancy Tax (HOT) must be reported and remitted by an individual or entity owning, operating, managing, or controlling a hotel within the City of Canyon.  The term "hotel" includes hotels, motels, tourist homes, tourist courts, lodging houses, inns, short term rentals, bed and breakfast, rooming houses, or other buildings where members of the public obtain sleeping accommodations for consideration where cost of occupancy is $2 or more per day.

The local hotel occupancy tax rate is 0.07 (7%).

Complete and detailed records must be kept of all receipts reported and exemptions or reimbursements claimed so that reports can be verified.  Failure to file this report and pay applicable tax may result in penalties pursuant to Section 33.35 of the City of Canyon Code of Ordinances.

The revenue derived from the Hotel Occupancy Tax is used to promote the tourism and lodging industry in Canyon.


Are Airbnb hosts required to collect a hotel occupancy tax?

Airbnb and other short-term rentals are subject to both state and local occupancy tax.  While Airbnb collects and remits occupancy to the State of Texas and some local municipalities, Airbnb and Vrbo do not submit taxes to the City of Canyon.  Therefore, local Hosts are required to collect and submit the occupancy tax (7%).

More detailed information for short term rental hosts in regards to hotel occupancy taxes can be found below.

When to file:

Hosts, hotel owners, operators and managers are required to file a Room Occupancy Tax Report and pay the local hotel tax that they have collected on a quarterly basis.  The City may request supporting documents associated with payments. 

City of Canyon Hotel Occupancy Tax (HOT) Forms 

Please email Assistant City Manager Jon Behrens if you have any questions.