Hutto, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 7% of room consideration
- Threshold
- $2.00+ per day occupancy
- Effective date
- October 1, 2005
- Long-term exemption
- 30+ consecutive days
- Geographic reach
- Includes city's ETJ
Summary
The City of Hutto levies a 7 percent hotel occupancy tax on any room costing $2.00 or more per night, effective since October 1, 2005. The tax reaches lodging inside Hutto's extraterritorial jurisdiction too. Stays of 30 or more consecutive days are exempt, along with most government occupants.
§ 20.05.001. Levied. The city levies a tax upon the occupant of any room or space furnished by any hotel where such cost of occupancy is at the rate of two dollars ($2.00) or more per day, such tax to be equal to seven (7) percent of the consideration paid by the occupant of such room, space or facility to such hotel, exclusive of other occupancy taxes imposed by other governmental agencies, effective as of October 1, 2005. § 20.0 ... 5.003. ... Exemptions. (a) This article does not impose a tax on a person who has the right to use or possess a room in a hotel for at least thirty (30) consecutive days, so long as there is no interruption of payment for the period.
Full Breakdown
Hutto Code of Ordinances § 20.05.001 sets a 7 percent hotel occupancy tax on the price charged to any guest occupying a room or space furnished by a hotel, but only where the nightly rate is $2.00 or more, effective October 1, 2005. Under § 20.05.002 the tax reaches lodging located inside the city's extraterritorial jurisdiction, as Texas Tax Code section 351.0025 allows. Section 20.05.003 carves out four exemptions: a guest with an uninterrupted right to occupy a room for at least 30 consecutive days pays no tax; the United States, the State of Texas, and most state agencies are exempt (except institutions of higher education); officers of those exempt governmental entities traveling on official business are exempt; and rooms rented from a religious, charitable, or educational nonprofit whose earnings do not benefit a private shareholder are exempt.
Section 20.05.004 restricts how the city may spend the collected revenue to the purposes the Texas Tax Code allows under sections 351.005 and 351.101 et seq. Enforcement runs through § 20.05.005: any person who violates the article is fined under the code's general penalty, § 1.01.009, which caps most violations at $500.00 per offense, and a separate offense is deemed committed for each day the violation occurs or continues. The tax is collected by the hotel operator from the guest and remitted to the city.
Violations & Fines
Failing to collect, report, or remit the hotel occupancy tax violates Article 20.05 and is punished under the general penalty in § 1.01.009: a fine of up to $500.00 per offense, with each day of noncompliance treated as a separate violation. The city's finance department administers collection; exemption disputes, such as the 30-day long-term stay exception, are resolved administratively before unpaid amounts proceed to municipal court.
Frequently Asked Questions
What is Hutto's hotel occupancy tax rate?
Are long-term guests exempt?
Does the tax apply outside the city limits?
What happens if a hotel doesn't remit the tax?
Sources & Official References
Other rules in Hutto
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Transient Occupancy Tax in Nearby Cities
How other cities in Williamson County handle transient occupancy tax.