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Hotel Occupancy Tax Ordinance
On May 18, 2021 City Council amended the Chapter 11.04 Hotel Occupancy Tax Ordinance of the Caldwell Code of Ordinances. A person who owns, operates, manages, or controls a hotel and/or short-term rental (STR) or collects payment for the use or possession or for the right to the use or possession of a hotel room and/or STR shall collect the tax levied by this article for the City. The City of Caldwell's Hotel Occupancy Tax rate is 7 percent. The City’s tax is in addition to the 6 percent rate imposed by the State of Texas, which must be remitted separately to the State. The ordinance defines hotel as any building in which members of the public obtain sleeping accommodations for consideration. The term includes a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, rooming house, or bed and breakfast. The term does not include:
  1. A hospital, sanitarium, or nursing home; or
  2. A dormitory or other housing facility owned or leased and operated by an institution of higher education or a private or independent institution of higher education, as those terms are defined by the Texas Education Code, § 61.003, as amended, that is used by the institution for the purpose of providing sleeping accommodations for persons engaged in educational program or activity at the institution; or
  3. an oilfield portable unit, as defined by Texas Tax Code, Section 152.001.
The ordinance also defines Short Term Rental (STR) Business as any location where you provide sleeping accommodations for consideration. This includes the operation of VRBO, HomeAway, and Airbnb’s. Revenue derived from the Hotel Occupancy Tax is used to promote tourism and the convention and hotel industry in Caldwell. 
Instructions for Reporting
Step 1. Register with the City of Caldwell
On an annual basis please fill out and submit the City of Caldwell Hotel Registration Form. This form is important to keep updated with the city to make sure the information for your hotel is correct.

Step 2. File a monthly or quarterly report and pay tax
On a monthly or quarterly basis each hotel will need to file a Hotel Occupancy Tax Report with the City of Caldwell and pay the total tax due in the form of a check.

Instructions for filing a report: Instructions for Completing the City of Caldwell Hotel Occupancy Tax Report General Information.
Who Must File:
  • You must file this report if you are a sole owner, partnership, corporation or other organization that owns, operates, manages or controls any hotel, motel, short-term rental, or bed and breakfast within the City or ETJ of the City of Caldwell.
  • 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 as prescribed by Chapter 11, Article 11.04, Section11.04.008 of the City of Caldwell Code of Ordinances.
When To File:
  • The report and appropriate tax payment are due:
    • Monthly: 20th day of the month following the end of each calendar month (for example, April 20 for March activity).
    • Quarterly (if qualified): 20th day of the month following end of the calendar quarter (for example, April 20 for first quarter activity).
  • Reports must be filed for every quarter even if you have no amount subject to tax or no tax due. If the due date falls on a Saturday, Sunday or City holiday, the next business day will be the due date.
Reporting Requirements
Monthly or Quarterly Reports and Payments Required:
  • A person required to collect the tax imposed by this Ordinance shall pay the City Secretary the tax collected during the preceding reporting period and at the time shall file with the City Secretary a report showing the total amount of the payments made for all room occupancies in the preceding period, the amount of the tax collected on such occupancies in the preceding period, and any other information the City Secretary or designee may reasonably require.
  • The report shall be in a form prescribed by the City Secretary or designee. The City Secretary or designee is hereby authorized and directed to do all things necessary or convenient to carry out the terms of this article.
  • The reporting period for such report and payment of taxes shall be the same as required by the Comptroller, either monthly or quarterly, as set out in Section 156.151, Texas Tax Code, as amended. This section is now outlined to follow the same schedule as when you would submit your reports and payment to the State Comptroller’s Office.

Collection of Hotel Occupancy Tax is now based on Sec. 156.151. REPORT AND PAYMENT. of the Texas Tax Code.
  • (a) A person required to collect the tax imposed by this chapter shall pay the comptroller the tax collected during the preceding reporting period and at the same time shall file with the comptroller a report stating:
    • (1) the total amount of the payments made for rooms at the person’s hotel during the preceding reporting period;
    • (2) the amount of the tax collected by the person during the preceding reporting period; and
    • (3) other information that the comptroller requires to be in the report.
  • (b) Except as provided by Subsection (c), each calendar month is a reporting period and the taxes imposed by and collected under this chapter are due and payable to the comptroller on or before the 20th day of the month following the end of each calendar month.
  • (c) If a taxpayer owes less than $500 for a calendar month or $1,500 for a calendar quarter, the taxpayer qualifies as a quarterly filer having a reporting period of a calendar quarter and the taxes are due and payable on the 20th day after the end of the calendar quarter. Acts 1981, 67th Leg., p. 1687, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1993, 73rd Leg., ch. 486, Sec. 5.02, eff. Oct. 1, 1994.
Tax Levied and Exemption Guidelines
Tax Levied and Exemptions:
A tax of seven percent (7.0%) of the consideration paid for a hotel room is levied, within the City limits and the extraterritorial jurisdiction of the City, on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays the consideration for the use or possession or for the right to the use or possession of a hotel room that costs two dollars ($2.00) or more each day and is ordinarily used for sleeping.

This article does not impose a tax on:
  • A person who has the right to use or possess a hotel room for at least thirty (30) consecutive days, so long as there is no interruption of payment for the period; or
  • A corporation or association organized and operated exclusively for religious, charitable, or educational purposes, no part of the net earnings of which insures to the benefit of any private shareholder or individual.
  • The United States, a governmental entity of the United States, or an officer or employee of the United States.

Except as otherwise provided in Section 156.103 of the Texas Tax Code, as amended, the state, or an agency, institution, board, or commission of the state other than an institution of higher education, as that term is defined by Section 61.003 of the Texas Education Code, as amended, shall pay the tax imposed by this article and is entitled to a refund of the amount of tax paid. A person entitled to a refund of tax paid under this article shall make an application for a refund in the form prescribed by the City.
Penalties and Interest
Please note A report must be filed even if no tax is due. If the person:
  • Fails to file a report on or before the due date;
  • Fails to pay the tax imposed on or before the due date; or
  • Files a report containing false information.
  • Fails to comply with section 11.04.005 when purchasing a hotel.
  • The person shall pay all taxes collected + 5% penalty.

Late payments and penalties apply as follows:
  • 1 – 30 days late
    • Pay all taxes collected + 5% penalty
  • 31 + days late
    • Pay all taxes collected + 10% interest annually.
Purchasing a Hotel
Purchasing a hotel and collection: If a hotel owner sells a hotel, the purchaser or his assignee shall withhold an amount of the purchase price sufficient to pay the amount of tax due until the seller provides:

  1. A receipt issued by the City showing that the amount of tax due has been paid; or
  2. A certificate issued by the City showing that no tax is due.
  3. A purchaser of a hotel who fails to withhold the amount of the purchase price as required by this article is liable for the unpaid tax required to be withheld to the extent of the value of the purchase price.

The purchaser of a hotel may file a written request with the City for the issuance of a certificate stating that no tax is due or for a statement of the amount required to be paid before a certificate may be issued. The City shall issue the certificate or statement not later than the 60th day after the date that the City receives the request.   If the City fails to issue the certificate or statement within the period provided by subsection (c), the purchaser is released from the obligation to withhold the amount of tax from the purchase price or pay the amount of tax due.

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