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Lewisville, 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
Taxable threshold
Rooms $2.00/day or more
STR included
Yes, per hotel definition
Permanent resident exemption
Stays of 30+ days
Late/unpaid penalty
15% + attorney's fees
Criminal penalty
Up to $500/day, each day separate

Summary

Lewisville levies a 7 percent hotel occupancy tax on rooms costing $2.00 or more per day under City Code Section 14-62, and the ordinance's 'hotel' definition expressly includes short-term rentals, so STR hosts owe the same local tax collected by hotels and motels.

Hotel shall mean any building in which the public may, for consideration, obtain sleeping accommodations. The term shall include hotels, motels, tourist houses, trailer houses, trailer motels, short-term rentals, bed and breakfast, and all other facilities where rooms or sleeping facilities or spaces are furnished for a consideration. ... (a)As authorized by V.T.C.A., Tax Code § 351.001 et seq., there is hereby levied a tax upon the cost of use or possession of any room that is in a hotel where such cost of occupancy is at the rate of $2.00 or more per day and is ordinarily used for sleeping, such tax to be equal to seven percent of the price of a room in a hotel, exclusive of other occupancy taxes imposed by other governmental agencies.(b)No tax shall be imposed hereunder upon a permanent resident as defined under V.T.C.A., Tax Code § 156.101.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Unified Development Code: Supplement 3 | Code of Ordinances: Supplement 34 Update 1).

Full Breakdown

Section 14-61 defines a 'hotel' broadly for tax purposes as any building where the public can obtain sleeping accommodations for consideration, expressly listing hotels, motels, tourist houses, trailer houses, trailer motels, short-term rentals, and bed and breakfast among facilities furnishing rooms for consideration, while carving out hospitals, sanitariums and nursing homes. 'Occupancy' means use of a sleeping room or space for a stay of less than 30 days, which is what pulls short-term rentals into the tax alongside traditional hotels. A. 001 et seq. 101.

Section 14-64 puts the collection burden on the operator, requiring every person owning, operating, managing or controlling a hotel to collect the tax for the city, and Section 14-65 requires a periodic report documenting receipts and tax collected. The definitions section notes a short-term rental has the meaning set out separately in Section 4-151, tying this tax article to the city's short-term rental permitting chapter.

Violations & Fines

Failing to collect, report or remit the 7 percent tax is enforced under Section 14-63: the city attorney can sue to enjoin the operator from running the hotel or short-term rental until the tax is paid and the report filed, the operator owes a 15 percent penalty on the unpaid tax plus the city's attorney's fees, and a violation is also a misdemeanor punishable by up to $500 per day, with a Section 14-66(a) audit violation grounds for short-term rental permit revocation.

Frequently Asked Questions

Do short-term rentals in Lewisville owe the hotel occupancy tax?
Yes. Section 14-61 defines 'hotel' for tax purposes to expressly include short-term rentals alongside hotels, motels and bed and breakfasts, so any short-term rental host collecting $2.00 or more per night owes the same 7 percent tax under Section 14-62 that applies to a traditional hotel room.
What is Lewisville's hotel occupancy tax rate?
Section 14-62(a) sets the rate at seven percent of the room price for any room costing $2.00 or more per day, charged on top of and separate from any occupancy tax collected by the state or another government. The tax applies whenever the stay is for less than 30 days.
Is anyone exempt from paying the tax?
Permanent residents are exempt under Section 14-62(b), using the definition in state Tax Code Section 156.101, which generally covers guests with a right to occupy a room for 30 consecutive days or more. Hospitals, sanitariums and nursing homes are excluded from the 'hotel' definition entirely under Section 14-61.
What happens if a hotel or short-term rental doesn't pay the tax?
Section 14-63 lets the city attorney sue to stop the operator from running the property until the tax is paid or the report corrected, and the operator owes a 15 percent penalty on the unpaid amount plus the city's attorney's fees. It's also a misdemeanor punishable by up to $500 per day, and can trigger revocation of a short-term rental permit.

Sources & Official References

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