Shenandoah, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 7 percent of room charge
- Minimum taxable room rate
- $2.00 or more per day
- Citation
- Code of Ordinances § 66-62
- Late penalty
- 5% forfeit + 6% annual interest
- Collection discount
- 1% if paid by the 10th
Summary
Shenandoah, Texas imposes a 7 percent local hotel occupancy tax on any hotel or motel room costing $2.00 or more a night, collected by the operator and remitted to the city. Late or unreported taxes draw a 5 percent penalty plus 6 percent annual interest.
The city imposes a tax of seven percent on every person who, under a lease, concession, permit, right of access, license, contract or agreement, pays for the use or possession, or for the right to the use or possession, of a motel or hotel room which costs $2.00 or more each day and which is ordinarily used for sleeping.
Full Breakdown
Sec. 00 or more per day that is ordinarily used for sleeping. The taxable room price excludes food served by the property and the cost of personal services, except services related to cleaning and readying the room. 101. 001(1), the same definition Texas uses for its own state hotel tax, which extends to short-term rental properties meeting that definition. Every owner, operator or manager of a motel or hotel in the city must collect the tax under Sec. 66-67, and Sec. 66-68 lets a reporting entity keep a 1 percent collection allowance if it reports and pays before the 10th day of the month following the reporting month; that discount section was most recently amended by Ord.
No. O-25-013 on May 14, 2025. Sec. 66-65 adds a distinct enforcement lever: an owner, operator or 25-percent-plus controller of a hotel or motel who has failed for the preceding 180 days to timely remit the tax, file required reports, or pay city utility bills, cannot be issued a building permit for property they operate, manage, control or own more than 25 percent of, and the city will not issue a permit to a contractor working for that person, subject to an emergency waiver by the city administrator.
Violations & Fines
Failing to remit the tax or file required reports on time forfeits an additional 5 percent of the tax owed, and delinquent taxes draw interest at 6 percent per year starting 30 days after the due date, collectible through any court under Sec. 66-65(a). Willful failure or refusal to pay the tax, file a report, or filing a false report is punished as a criminal offense under the Code's general penalty section, Sec. 1-13, and a habitually delinquent operator can be blocked from receiving city building permits under Sec. 66-65(b).
Frequently Asked Questions
What is Shenandoah, Texas's hotel occupancy tax rate?
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What happens if a Shenandoah hotel operator does not pay the occupancy tax on time?
Sources & Official References
Other rules in Shenandoah
Texas rules heatmap·Compare Shenandoah to another location·View the Texas hotels & lodging overview
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Transient Occupancy Tax in Nearby Cities
How other cities in Montgomery County handle transient occupancy tax.