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.

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 and the 2 percent tax imposed by Denton County, both of which must be remitted separately to those entities. For information on the State Hotel Occupancy Tax or the Denton County Hotel Occupancy Tax, please visit their websites.

Exemptions

Exemptions are granted by the Town of Flower Mound for:

  1. Guests who stay longer than 30 days. Guests must notify the hotel upon arrival. (Permanent Resident)
  2. 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.
  3. U.S. Federal Government Employee traveling on official business.
  4. Diplomatic Personnel with a Tax Exemption Card.

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

For information on how to register your hotel or short-term rental with the Town and remit your monthly hotel occupancy taxes, please click on the appropriate corresponding page to the left.