Hotel Occupancy Tax

Every person owning, operating, managing, or controlling any hotel or collecting payment for occupancy in any hotel shall collect the Hotel Occupancy Tax from their guests for the City of Allen. The City of Allen’s Hotel Occupancy Tax rate is 7%. The City’s tax is in addition to the 6% rate imposed by the State of Texas, which must be remitted separately to the State.

The tax defines hotel as a building in which members of the public obtain sleeping accommodations for a cost of $2 of more each day. This includes a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, rooming house, or bed and breakfast. This definition does not include hospitals, sanitariums or nursing homes.

Revenue derived from the Hotel Occupancy Tax is used to promote tourism and the convention and hotel industry in Allen. Learn how to apply for the City's Hotel Occupancy Tax Grant

  1. Reporting Requirements
  2. Exemption guidelines
  3. helpful Forms

A report must be filed with the City if you are a sole owner, partnership, corporation or other organization that owns, operates, manages or controls any hotel or motel in the city of Allen, TX.

When to file

Effective Jan. 1, 2019, a Hotel Occupancy Tax report must be submitted on or before the 20th of the month following the monthly reporting period. A payment in the amount of the tax collected must accompany this report for each calendar month of the year. If the due date falls on a Saturday, Sunday, or City holiday, the next business day will be the due date.

Please note

A report must be filed even if no tax is due. Penalties and interest will apply to late payments.
  • 1 to 30 days late: Pay all taxes collected + 5% penalty + 12% annual interest
  • 31 to 90 days late: Pay all taxes collected + 10% penalty + 12% annual interest (compounded monthly)
  • More than one fiscal quarter late: Pay all taxes collected + 15% penalty + 12% annual interest (compounded monthly)

State Reporting Requirements

Per Senate Bill 1221, an annual report is produced each year to show the breakdown of revenue and expenditures for the fiscal year.