Laredo, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Local tax rate
- 7 percent of room consideration
- Taxable threshold
- Rooms $2.00/day or more
- Report/payment due
- Last day of following month
- Permanent resident exemption
- 30+ consecutive days
- Late-filing penalty
- 5% plus 5% after 30 days
- Delinquent interest
- 10% per year
Summary
Laredo levies a local hotel occupancy tax of 7 percent on room charges of $2.00 or more per day at any hotel, motel, or similar lodging in the city, collected by the operator and remitted monthly to the city tax collector under Code of Ordinances Sec. 30-17.
(a)There is hereby levied a tax upon the cost of occupancy 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 to such hotel, exclusive of other occupancy taxes imposed by other governmental agencies.(b)No tax shall be imposed hereunder upon a permanent resident.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 23 Update 3 | Land Development Code: Supplement 1).
Full Breakdown
Sec. 30-16 defines "hotel" broadly to include hotels, motels, tourist homes, lodging houses, trailer motels, dormitory space rented to individuals or groups, and apartments not occupied by permanent residents, capturing most short-term lodging arrangements while excluding hospitals, sanitariums, and nursing homes. Sec. 00 or more per day, on top of and separate from the state hotel occupancy tax. A permanent resident, defined as an occupant with the right to occupy a room for at least 30 consecutive days in the current or preceding calendar year, is exempt from the local tax under Sec.
30-17(b), and that status attaches as of a binding agreement to stay 30 consecutive days without a break in payment. Religious, charitable, and educational organizations are exempt from the state tax but must still pay the city and county local taxes; the United States government is exempt only when paying the hotel directly, while federal employees paying with personal funds owe both state and local tax. Sec. 30-18 makes every hotel operator responsible for collecting the tax for the city, and Sec. 30-19 requires a monthly report to the tax collector, filed by the last day of the month following each collection period, listing total room consideration and tax collected, along with a copy of the operator's monthly state comptroller report.
Violations & Fines
Sec. 30-21 makes it a misdemeanor, punishable under Sec. 1-6, for any hotel operator to fail to collect the tax, fail to file the required monthly report, fail to pay the tax, or to file a false report. An operator who misses the filing or payment deadline forfeits a penalty of 5 percent of the tax due, and an additional 5 percent if the tax remains unpaid more than 30 days after it was due (minimum penalty $1.00). Delinquent tax draws interest at a yearly rate of 10 percent, beginning 60 days after the due date.
Frequently Asked Questions
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Sources & Official References
Other rules in Laredo
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