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The City Council of the City of Caldwell recently adopted the process for issuing Hotel Occupancy Tax reimbursements for qualifying expenses to organizations in Caldwell. Below is the process and the required forms to be submitted for consideration of a HOT reimbursement grant. On May 18, 2021 City Council amended the Chapter 11.04 Hotel Occupancy Tax Ordinance of the Caldwell Code of Ordinances.
Hot Fund Grant Application
Hot Fund Sample Contract
Hot Fund Post Event Report
Eligibility
State Law: By law of the State of Texas, the City of Caldwell collects a Hotel Occupancy Tax (HOT) from hotels, bed & breakfasts, and other lodging facilities. Under state law, the revenue from the HOT Funds may be used only to directly promote tourism and the hotel and convention industry. Chapter 351 of the Tax Code states that the use of HOT funds is limited to:
  1. Convention Centers and Visitor Information Centers: the acquisition of sites for and the construction, improvement, enlarging, equipping, repairing operation and maintenance of convention center facilities or visitor information centers, or both;
  2. Registration of Convention Delegates: the furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants;
  3. Advertising, Solicitations and Promotions that Directly Promote Tourism and the Hotel and Convention Industry: advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity;
  4. Promotions of the Arts that Directly Promote Tourism and the Hotel and Convention Industry: the encouragement, promotion, improvement, and application of the arts that can be shown to have some direct impact on tourism and the hotel/convention industry. The impact may be that the art facility or event can show hotel nights that are booked due to their events or that guests at hotels attend the arts event. Eligible forms of art include instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture photography, graphic and craft arts, motion picture, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms.
  5. Historical Restoration and Preservation Activities that Directly Promote Tourism and the Hotel and Convention Industry: historical restoration and preservation projects or activities or advertising and conducting solicitation and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums.
  6. Sporting Event Expenses that Substantially Increase Economic Activity at Hotels: Expenses including promotional expenses, directly related to a sporting event in which the majority of participants are tourists. The event must substantially increase economic activity at hotels within the city or its vicinity.
  7. Funding transportation systems for transporting tourists from hotels to and near the city to any of the following destinations: The law specifically prohibits the use of the local hotel tax to cover the costs for general city transit costs to transport the general public.
    • the commercial center of the city;
    • a convention center in the city;
    • other hotels in or near the city; or
    • tourist attractions in or near the city
    • Signage directing tourists to sights and attractions that are visited frequently by hotel guests in the municipality.
Eligibility & Priority for Hotel Tax Funds
Priority will be given to those events and entities based on their ability to generate overnight visitors to Caldwell. If an event will not generate any meaningful hotel night activity, it is not eligible for receipt of hotel occupancy tax funds. Events can prove this potential to generate overnight visitors by:
  • Historic information on the number of room nights used during previous years of the same events;
  • Current information on the size of a room block that has been reserved at area hotels to accommodate anticipated overnight guests attending the funded event;
  • Historical information on the number of guests at hotel or other lodging facilities that attended the funded event (through surveys, guest directories, or other sources; and/or
  • Examples of the planned marketing of the programs and activities that will likely generate overnight visitors to local lodging properties from this event.
Use of Revenues from Events
A portion of the revenues from any event and/or project receiving any type of funding assistance from the HOT funds should be channeled back into the future costs of operating that same event or the continued operation of the project. No other outside event(s), project, charity, etc., sponsored by the host applicant may profit from the City Council’s funding of a particular event.
  • The event must be located in the City’s corporate limits, extraterritorial jurisdiction, or in sufficiently close proximity as to reasonably attract tourists to the City.
  • The applicant must demonstrate that the disbursement will directly enhance and promote the tourism, convention, and hotel industry by attracting visitors from outside of Caldwell into the City or its vicinity.
  • The applicant must be a legal entity with legal capacity and authority to enter into contracts.
  • The applicant must demonstrate that the programs or events are open and appropriate for the general public.
  • The applicant must demonstrate that it is in good financial standing with the City, and that financial safeguards are in place to protect public funds.
Application Process
  • STEP 1: Determine if you fit the criteria listed above.
  • STEP 2: Submit Application.  If you meet all the above criteria, complete the H.O.T. Application, submit the typed completed application, with estimates of event/project and completed estimates of revenue and expenditures (page 7), along with the following required attachments to the City of Caldwell.
  • STEP 3: Provide additional documents as requested by the City. City staff will review the application to verify that all information has been submitted. If there is missing information or documents, the City will notify the requesting organization of any additional needs. The application will be brought forward to the City Council for review after it is determined to be complete.
  • STEP 4: Attend City Council Workshop. At the time of review by the City Council in a workshop session, the applicant is encouraged to attend the meeting to present its request for Hotel Occupancy Tax funds. Once reviewed by the City Council during the workshop session if the item is recommended for approval, it will then be placed on the City Council meeting agenda for final consideration.
  • STEP 5: Attend City Council Meeting. Next the Application will be presented to City Council, at which time the applicant should be present to answer questions. If the City Council approves the contract and designates the amount (cap of $3,000 per request) then the contract will be ready for signing by the applicant.
  • STEP 6: Sign contract. If funding is  awarded by Council, the organization is required to sign the original funding contract documents within two weeks of approval, if not signed that is considered a rejection of the funding offer.
  • STEP 7: Reporting and Reimbursement: The organization is responsible for completing the Post Event Report Form with the finalized information explaining the use of Hotel Occupancy Tax Revenues and submit (see submittal schedule).  The organization must provide receipts for review to affirm that the expenses comply with Chapter 351 of the Tax Code. If not received by the due date listed in the submittal schedule, reimbursement will not be paid. Only expenses with receipts or invoices to be paid directly to vendors will be paid or reimbursed once they are approved by the City. At its expense, the City of Caldwell has the right to audit the books or financial records of any organization that receives Hotel Occupancy Tax revenues.
    • Any funded applicant must notify overnight lodging establishments of the upcoming event, and any promotional material must reference Caldwell lodging establishments.
    • In addition, list the City of Caldwell as a sponsor/partner of the event or project, and/or use the approved city logo.

SUBMISSION SCHEDULE

  • STEP 1. HOLD AN EVENT 
    • FALL SUBMISSION: Events taking place from June 1 - December 15
    • SPRING SUBMISSION: Events taking place from December 16 - May 30
  • STEP 2. SUBMIT APPLICATION 
    • FALL SUBMISSION: October 1 - December 15 
    • SPRING SUBMISSION: March 15 - May 3
  • STEP 4. ATTEND COUNCIL WORKSHOP 
    • FALL SUBMISSION: Last Tuesday in January @ 5:30PM 
    • SPRING SUBMISSION: Last Tuesday in June @ 5:30PM
  • STEP 5. CITY COUNCIL APPROVAL  
    • FALL SUBMISSION: Third Tuesday in February @ 5:30PM  
    • SPRING SUBMISSION: Third Tuesday in July @ 5:30PM
  • STEP 6. SIGN CONTRACT | E-sign the contract via Adobe, once executed you will receive a copy of the contract.
  • STEP 7. SUBMIT POST EVENT REPORT
    • FALL SUBMISSION: March 15 before 5:00PM  
    • SPRING SUBMISSION: August 15 before 5:00PM
  • STEP 8. RECEIVE REIMBUSEMENT | Within 3-4 weeks once all documentation has been submitted and deemed complete.

Disclaimer
By submitting this Hotel Occupancy Tax Funding Application, the Applicant agrees to comply with all local, state and federal laws applicable or otherwise implicated by Applicant’s receipt of a Hotel Occupancy Tax Funding Grant, which includes but is not limited to Applicant’s compliance with Title VII, Civil Rights Act of 1964, as amended, the Texas Labor Code, the Drug Free Workplace Act of 1988, and the Americans with Disabilities Act, as well as Applicant’s refraining from discrimination of persons based on race, color, religion, sex (including pregnancy, childbirth, and related medical conditions; sexual orientation), national origin, disability, age, citizenship status, genetic information, political affiliation or participation in civil rights activities. Furthermore, while the City of Caldwell fully supports the exercise of freedom of speech, the City of Caldwell will not financially support or fund projects that incorporate or promote ideas of hate or which are intended to vilify, humiliate, or incite hatred against a group or a class of persons on the basis of race, religion, skin color, sexual identity, gender identity, ethnicity, disability or national origin.