Grand Prairie, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 7 percent of room consideration
- Minimum room rate taxed
- $2.00 per day or more
- Reporting frequency
- Quarterly, due end of next month
- Permanent resident exemption
- 30+ consecutive days, no gap
- Late payment penalty
- 5% plus 5% more after 30 days
- Interest on delinquent tax
- 6% annually after 60 days
- Violation classification
- Class C misdemeanor, § 24-35
Summary
Grand Prairie levies a 7 percent hotel occupancy tax on any room or space costing $2.00 or more per day, collected by the hotel operator and remitted to the city's assessor-collector each quarter. Guests who stay 30 or more consecutive days, and certain state and federal government travelers, are exempt from the tax.
There is hereby levied a tax upon the occupant of any room or space furnished by any hotel within the city for which the cost of occupancy is at the rate of two dollars ($2.00) or more per day. The tax imposed is equal to seven (7) per cent of the consideration paid by the occupant of the room to the hotel. No tax shall be imposed upon: (1)Pursuant to V.T.C.A., Tax Code § 156.101, as amended, a person who has the right to use or possess a room in a hotel for at least thirty (30) consecutive days is exempt from the payment of the tax imposed under this article, so long as there is no interruption of payment for the period.(2)A person described in V.T.C.A., Tax Code § 156.103(d), as amended, is exempt from payment of the tax imposed under this article.(3)A governmental entity excepted from the tax imposed by V.T.C.A., Tax Code ch. 156, as amended, under §§ 156.103(a)(1) or (a)(3) of that chapter, shall pay the tax imposed by this article, but is entitled to a refund of the tax paid.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 116).
Full Breakdown
00 or more, set at 7 percent of the consideration the occupant pays the hotel. Every person owning, operating, managing, or controlling a hotel must collect that tax for the city (section 24-32) and file a report with the assessor-collector by the last day of the month following each calendar quarter, showing total consideration collected, tax collected, and any other information the assessor-collector reasonably requires, paying the tax due at the same time (section 24-33). 1). The assessor-collector can audit hotel books on reasonable notice, estimate the tax owed if a hotel fails to file or pay, and file an affidavit of unpaid tax with the county clerk to create a lien (section 24-34).
103(a)(1) or (a)(3) must still pay the tax up front but can file a quarterly refund claim with the assessor-collector on a state comptroller form. The tax applies to hotels, motels, tourist homes, courts, lodging houses, inns, rooming houses, and other buildings renting rooms for consideration, including short-term rentals, but not hospitals, sanitariums, or nursing homes.
Violations & Fines
A hotel operator commits a class C misdemeanor under section 24-35 for failing to collect the tax, file the required report, pay the tax, make records accessible at the hotel, or for filing a false report. Section 24-36 adds a 5 percent penalty for a late report or payment, another 5 percent after the first 30 days (minimum $1.00), 6 percent annual interest starting 60 days after the tax was due, up to $100 per day for refusing to make records available, a 50 percent penalty for altering or destroying records to affect an audit, and liability for the city's reasonable attorney's fees in collecting unpaid tax.
Frequently Asked Questions
What is Grand Prairie's hotel occupancy tax rate?
Does the city hotel tax apply to short-term rentals?
Who is exempt from the hotel occupancy tax?
How often must hotels report and pay the tax?
What happens if a hotel doesn't pay the tax on time?
Sources & Official References
Other rules in Grand Prairie
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