Hotel/Motel Occupancy Taxes
When a hotel or motel changes ownership, state law (
) stipulates that either of the following must occur:
- the seller must provide a receipt from the State Comptroller showing that all occupancy taxes are paid, or
- the buyer must withhold sufficient funds from the purchase payment to pay any outstanding occupancy tax.
The Comptroller may hold the buyer responsible for any back taxes due in this regard. Therefore, TxDOT must receive the following documentation before acquiring hotel/motel property:
- a Comptroller's receipt of occupancy taxes paid; or
- a statement of occupancy taxes due.
Interested parties may call the Comptroller of Public Accounts, Legal Process Section, Revenue Accounting, to obtain this documentation.