Hotel Occupancy Tax Information

Hotel Occupancy Tax Policy

Every person owning, operating, managing, or controlling any hotel or collecting payment for occupancy in any hotel shall collect the Hotel Occupancy Tax from their guests for the Town of Flower Mound.
A hotel is any building in which members of the public obtain sleeping accommodations for consideration. It includes a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, rooming house, or bed and breakfast. It does not include a hospital, sanitarium, or nursing home, or a dormitory or other housing facility owned or leased and operated by an institution of higher education or a private or independent institution of higher education, that is used by the institution for the purpose of providing sleeping accommodations for persons engaged in educational program or activity at the institution.
The tax is levied on any occupant of any room in a Hotel which is ordinarily used for sleeping and the occupancy cost is $2 or more each day for a consecutive duration of 30 days or less.
The revenue derived from the Hotel Occupancy Tax is used to promote tourism and the convention and hotel industry in Flower Mound.

Registration

If the hotel has not yet registered with the Town of Flower Mound, please complete a Registration Form to establish your account.

Tax Rates

The Town of Flower Mound’s Hotel Occupancy Tax rate is 7 percent, which is submitted directly to the Town.
The Town’s tax is in addition to the 6 percent rate imposed by the State of Texas, which must be remitted separately to the State. For information on the State Hotel Occupancy Tax, please visit their website or call 1.800.252.1385.

Reporting Requirements

Every person required to collect the Hotel Occupancy Tax must file a Hotel Occupancy Tax Report Form with the Town of Flower Mound Financial Services Department showing the consideration paid for all room occupancies in the preceding month and the amount of the tax collected on the occupancies. A payment in the amount of the tax collected must accompany this report.
Reports and payments are due on the fifteenth of the month following each month in which the tax is earned. A report is required even if no taxes are collected during the month.
If the due date falls on a weekend or holiday, the next business day is considered the due date. If the tax is paid by mail, the valid U.S. Postal Service postmark date will be considered the payment date.
A person failing to pay the tax by the 25th day of the month following the month in which the tax is earned shall pay 15 percent of the tax due as a penalty. Delinquent taxes draw interest at the rate of ten percent per year beginning 30 days from the date the tax is due.
Every person collecting this tax may deduct a 1 percent collection fee from the gross amount of tax collected on all occupancies in the preceding month if the tax is paid to and received no later than the fifteenth day of the month following the month in which the tax is required to be collected.
Complete and detailed records must be kept of all receipts reported, and exemptions or reimbursements claimed so that returns can be verified by a Town auditor. The Town may request these records or audit an organization at any time.

Exemptions

Exemptions are granted by the Town of Flower Mound for:

Guests who stay longer than 30 days. Guests must notify the hotel upon arrival. (Permanent Resident)
An officer, employee, agency, institution (other than an institution of higher education), board, or commission of this state, for whom a special provision or exception to the general rate of reimbursement under the General Appropriations Act applies and who is provided with photo identification verifying the identity and exempt status of the person.
U.S. Federal Government Employee traveling on official business.
Diplomatic Personnel with a Tax Exemption Card.

*Please note that local government personnel are NOT exempt from the tax.

If any guests qualify for an exemption, please include this Exemptions Form with the monthly HOT report.

Submission

Please mail the completed Hotel Occupancy Tax Report Form and payment to the Town of Flower Mound:

Town of Flower Mound
Financial Services Department
Hotel Occupancy Tax
2121 Cross Timbers Rd.
Flower Mound, Texas 75028