Sugar Land, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 7% of room price
- Taxable stay threshold
- Room ordinarily used for sleeping, $2.00+/day
- Exempt stays
- 30 days or more of continuous occupancy
- Report deadline
- Last day of month after each quarter
- Late penalty
- 5% + 5% after 30 days, 10%/yr interest
- Criminal fine
- Up to $500.00 per offense
Summary
Sugar Land levies a 7% municipal hotel occupancy tax on any room costing $2.00 or more per day and rented for less than 30 days, collected by the operator and remitted quarterly to the city administrator.
Sec. 2-125. Occupancy means the use or possession or the right to the use or possession of any room in a hotel if the room is one ordinarily used for sleeping and if the occupant's use, possession, or right to use or possession is less than 30 days. ... Sec. 2-126. Tax imposed. There is imposed a tax on the 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 room in a hotel that costs $2.00 or more each day and is ordinarily used for sleeping. The amount of the tax is seven percent of the price paid for the room.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Land Development Code: Supplement 14 | Code of Ordinances: Supplement 55).
Full Breakdown
Under Sec. 00 or more per day and is ordinarily used for sleeping. Sec. 2-125 defines occupancy as use or right to use a sleeping room where the stay is less than 30 days, which is what pulls short-term rental stays into the tax along with traditional hotels; stays of 30 days or more fall outside the tax. Every person owning, operating, managing, or controlling a hotel is the collector of record under Sec. 2-127 and must remit what is collected to the city. Sec.
2-128 requires a quarterly report filed with the administrator (the person the city manager designates to administer the tax) on or before the last day of the month following each calendar quarter, showing total room consideration, tax collected, and the amount separately remitted that quarter to the Texas Comptroller under Tax Code Chapter 156 for the state's parallel 6% hotel tax. Sec. 2-129 gives the administrator authority to inspect the operator's books and records during regular business hours to verify any report. Sec. 2-131 restricts use of the city's share of proceeds to the purposes state law allows for municipal hotel tax revenue.
Violations & Fines
Sec. 2-130 sets a civil penalty of 5% of the tax due for a late report or late payment, plus another 5% if the failure continues 30 days or more (minimum penalty $1.00), with interest at 10% per year starting 60 days after the due date. Separately, any person who fails to collect, report, or pay the tax is guilty of a criminal offense punishable by a fine up to $500.00 per offense.
Frequently Asked Questions
Does Sugar Land's hotel tax apply to short-term rentals like Airbnb?
Who is responsible for collecting and remitting Sugar Land's hotel tax?
What happens if a hotel operator files or pays late?
Is Sugar Land's 7% hotel tax on top of the state hotel tax?
Sources & Official References
Other rules in Sugar Land
Texas rules heatmap·Compare Sugar Land to another location·View the Texas hotels & lodging overview
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