Taylor, TX Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 7% of guest room price
- Filing deadline
- 20th of month after occupancy period
- Late penalty
- 15% added to unpaid tax
- Violation fine
- Up to $500 per offense, per day
- Permanent resident exemption
- After 30 consecutive days' occupancy
- Enforcement
- Finance director; suit to enjoin after 60 days
Summary
Every hotel, motel, bed and breakfast or lodging operator in Taylor must collect a 7 percent occupancy tax on a guest's room charge under Sec. 27-68. The tax exempts permanent residents after 30 days, federal and certain state government travelers, and qualifying Texas quasi-governmental entities presenting an exemption certificate.
Sec. 27-68. - Tax authorized; tax rate; exceptions to tax.(a)Authorization. There is hereby levied a tax upon the cost of or consideration paid for a sleeping room or sleeping facility furnished by any hotel.(b)Tax rate. The tax shall be equal to seven percent of the total price of a guest room or sleeping facility, said price to include all goods and services provided by the hotel which are not ordinarily subject to sales tax.(c)Exceptions.(1)No tax shall be collected from a guest after becoming a permanent resident. A guest becomes a permanent resident either after 30 continuous days' occupancy, or upon notifying the lodging provider in writing of his intention to occupy a guest room for longer than 30 continuous days and then proceeding to actually occupy the guest room for such period.
Full Breakdown
The city finance director administers the tax under chapter 27, article III. Lodging providers must register with the finance director within 30 days of starting business (Sec. 27-69) and receive a certificate of authority. The 7 percent tax applies to the full guest-room price, including any non-taxable goods or services bundled into the room rate, but excludes separately stated food charges, personal services unrelated to the room, sales tax, and other governmental occupancy taxes (Sec. 27-67, Sec. 27-68(b)). Returns and payment are due monthly, on or before the 20th day of the month following the reporting period (Sec.
27-71(a)); a late filing draws a 15 percent penalty added to the tax, waivable only by the city council for providential cause shown by affidavit and cured within ten days (Sec. 27-71(b)-(d)). The finance director may issue a deficiency determination based on any information in the city's possession, must mail notice within four years, and the provider then has ten days to protest in writing, with a further appeal to the city council (Sec. 27-72). Records, including folios and exemption certificates, must be kept for four years and made available for examination in the city, and the finance director can charge examination costs once an account is at least two fiscal quarters delinquent (Sec.
27-74). Delinquent accounts referred to the city attorney after 60 days can be enjoined from operating until paid, though a provider can instead post a surety bond covering its six best net-revenue months (Secs. 27-78, 27-79).
Violations & Fines
Failing to collect, remit, or file a return, or refusing to keep records open for inspection, is a misdemeanor under Sec. 27-77, punishable by a fine of up to $500 per offense; filing a false or fraudulent return to evade the tax carries the same $500 cap, and each day a violation continues is a separate offense. Beyond the fine, Sec. 27-78 lets the city attorney sue to enjoin a hotel from operating once a tax account is more than 60 days delinquent.
Frequently Asked Questions
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Sources & Official References
Other rules in Taylor
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Transient Occupancy Tax in Nearby Cities
How other cities in Williamson County handle transient occupancy tax.