Hotel Occupancy Taxes
Overview
The City of Caldwell imposes a 7% tax rate on all short-term sleeping accommodations. This applies to hotels, motels, Short-term rentals (STR) such as Airbnb and VRBO, and direct booking locations. For a more detailed definition, refer to the City’s HOT Ordinance.
All lodging facilities should ensure they are in compliance with tax collection and remittance to the appropriate parties. In Burleson County, the below rates apply that total 15%, commonly referred to as ‘Occupancy Tax’.
State 6% Remit to State
County 2% Remit to Burleson County
Local 7% Remit to City of Caldwell
These rates apply to all lodging facilities both within Caldwell City Limits and those outside the City Limits but within the Extra Territorial Jurisdiction (map below). If you are unsure if your facility is within either jurisdiction, please contact the City Secretary for more information.
Tax Collection
It is the responsibility of the Operator to collect the appropriate taxes and to remit them to the correct parties.
Hotels & Motels: Property Management Systems typically include the taxes in the software configuration. Please verify the mapping in your system matches the figures provided previously.
Short-Term Rentals (STR): Most booking platforms have taxes built-in to a certain degree. Airbnb allows hosts to update taxes per listing: https://www.airbnb.com/help/article/2523 while VRBO is more limited. VRBO hosts may need to contact their internal support to ensure compliant tax setup. https://help.vrbo.com/articles/How-can-I-manage-my-lodging-taxes
Next Steps
All operators should complete the annual registration with the City: Hotel & Short-Term Rental Operator Registration – Fill out form
Taxes can be remitted either monthly or quarterly, and you must submit an occupancy report to validate the amount paid. A report must be filed for every reporting period, even when no taxable activity occurred or no tax is due.
Additional resources are available to you. If there are additional questions, please contact Amanda Frank at City Hall to schedule a meeting for further discussion.
Resources
City webpage: https://www.caldwelltx.gov/recreation-and-community/business/hotel-occupancy-tax/
Texas Comptroller: https://comptroller.texas.gov/taxes/hotel/
Texas Tax Code: https://statutes.capitol.texas.gov/?tab=1&code=TX&chapter=TX.351&artSec=