Hotel Occupancy Tax Revenue Advisory Board

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City of Coleman Hotel Occupancy Tax (HOT) Funds

By ordinance, the City of Coleman collects a Hotel Occupancy Tax (HOT) from hotels, bed & breakfasts, and other lodging facilities located within the city limits. The revenue from the HOT may be used only to directly promote tourism and the hotel and convention industry.

Lodging facilities may use the form HERE to report hotel occupancy taxes collected. 

Remit payment to:
City of Coleman
PO Box 592,
Coleman, Texas, 76834.

Questions regarding payment of Hotel Occupancy Taxes may be directed to the City Secretary by email at city.secretary@cityofcolemantx.us or by phone at 325-625-4116 ext 102.

Use of HOT Funds

Municipal hotel occupancy taxes are primarily governed by Chapter 351 of the Texas Tax Code. The HOT funds are generated as a result of a person paying for the use or possession, or for the right to the use or possession, of a room in a hotel, motel or bed and breakfast, with a cost of $2 or more each day, that is ordinarily used for sleeping, not on a permanent basis.

There is a two-part test for every expenditure of local Hotel Occupancy Taxes.

• Criteria #1: Every expenditure must directly enhance and promote tourism and the convention and hotel industry.
• Criteria #2: Every expenditure must clearly fit into one of nine statutorily provided categories.

The categories for expenditure of the hotel occupancy tax are as follows:

1. Funding the establishment, improvement or maintenance of a convention center or visitor information center, or both.
2. Paying the administrative costs for facilitating convention registration.
3. Paying for advertising, solicitations and promotions that attract tourists and convention delegates to the city or its vicinity. (1/7 of total funds must be spent on advertising and promoting the city and its vicinity to attract tourist and hotel/convention activity.)
4. Expenditures that promote the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution and exhibition of these major art forms.
5. Funding historical restoration or preservation programs. This funding may be used in primarily two ways. First, to enhance historical restoration and preservation projects. Second, for activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums. Either of those uses must be for activities, programs or events that are likely to attract tourists and hotel guests (limited to 15% of total funds).
6. Funding certain expenses, including promotional expenses, directly related to a sporting event within counties with a population of under 1 million. This sporting event must include mostly participants from out of town.
7. Enhancing or upgrading existing sports facilities or sports fields (only in certain cities and not applicable to Coleman).
8. Funding transportation systems for tourists.
9. Signage directing tourists to sights and attractions that are visited frequently by hotel guests in the municipality.

Application Process

The City of Coleman accepts applications from groups and businesses whose program fits into one or more of the above categories. All requests for funds should be submitted in writing accompanied by the official application no later than the 15th of the month to be considered for the next Hotel Occupancy Tax Revenue Advisory Board meeting. The application will be reviewed by the HOT Board at the earliest possible regularly scheduled meeting. The Board meets monthly, on the fourth Monday of the Month. An acceptable application is one that is complete and meets the deadline requirements. Each group, with an acceptable application, will be scheduled for a date and time to present their request to the Hotel Occupancy Tax Revenue Advisory Board. At the presentation, the Board may ask questions and seek clarification. A formal presentation is encouraged; however, it is not required. Applicants will be notified one week prior to the meeting of the time and place for the review. The Hotel Occupancy Tax Revenue Advisory Board will review the application and recommend approval or denial of the application to City Council. The Coleman City Council shall make the final decision on the applicant's request. Priority will be given to those events and entities based on their ability to generate overnight visitors to the City of Coleman, coupled with a consideration of the most efficient use of the hotel occupancy funds.