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Farmersville, TX Hotels & Lodging: Transient Occupancy Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Tax rate
7% of room price (§ 68-21(b))
Exempt stays
Under $2.00/day; 30+ day residents
Revenue use
Tourism/convention promotion only
Collector
Hotel operator, into liability account
Late penalty
5% + 5% after 60 days, 10%/yr interest

Summary

Farmersville levies a seven percent hotel occupancy tax on every sleeping room or facility rented in the city, per Code § 68-21, with exceptions for stays under $2.00 per day, meeting rooms, and permanent residents.

(a)There is hereby levied a tax upon the cost of or consideration paid for a sleeping room or sleeping facility furnished by any hotel.(b)The tax shall be equal to seven percent of the total price of a sleeping room or sleeping facility, said price to include all goods and services provided by the hotel which are not ordinarily subject to sales tax.(c)The following are exceptions to the tax:(1)There shall be no tax on the cost of or consideration paid for occupancy of a hotel sleeping room or sleeping facility priced at less than $2.00 per day.(2)The cost of or consideration paid for a hotel room or facility not ordinarily used for sleeping, such as a meeting room, is not subject to this tax.(3)The cost of or consideration paid for a sleeping room or facility occupied by a permanent resident is not subject to this tax.

Full Breakdown

00 per day," to a room or facility "not ordinarily used for sleeping, such as a meeting room," to a room occupied by a permanent resident (defined in § 68-19(6) as someone who has paid for the same room for at least 30 consecutive days), or to food and personal-service charges unrelated to cleaning and readying the room. 103, with a refund procedure for entities that must pay and later reclaim the tax. Section 68-22 makes the hotel operator responsible for collecting the tax and depositing it into a separate liability account, and § 68-26 restricts how the city may spend the revenue: only on convention and visitor facilities, delegate registration, tourism advertising, the arts, historic preservation, and tourism-driving sporting events, never as general city revenue.

Section 68-19(2) defines "hotel" broadly to include motels, tourist courts, lodging houses, rooming houses, and dormitories renting bed space, but excludes hospitals, sanitariums, nursing homes, and certain college housing.

Violations & Fines

Under § 68-20, a hotel operator who violates the article or files a false report commits a class C misdemeanor, with each day of noncompliance a separate offense; § 68-27 adds a five percent penalty for a late report or payment, another five percent if still unpaid after 60 days (minimum $1.00), and ten percent annual interest on the unpaid balance starting on the 61st day.

Frequently Asked Questions

What is Farmersville's hotel occupancy tax rate?
Section 68-21(b) sets the rate at seven percent of the total price of a sleeping room or facility, covering all goods and services the hotel provides that are not already subject to sales tax.
Are any hotel stays exempt from the Farmersville occupancy tax?
Yes. Section 68-21(c) exempts rooms priced under $2.00 per day, rooms not used for sleeping such as meeting rooms, and rooms occupied by a permanent resident who has paid for the same space for at least 30 consecutive days.
What can Farmersville spend hotel occupancy tax revenue on?
Section 68-26 limits it to promoting tourism and the convention and hotel industry, such as visitor centers, delegate registration, tourism advertising, the arts, historic preservation, and qualifying sporting events; it may never fund general city operations.

Sources & Official References

Other rules in Farmersville

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