On May 18, 2021, the Caldwell City Council amended Chapter 11.04 – Hotel Occupancy Tax Ordinance of the City’s Code of Ordinances. This ordinance outlines the responsibility for collecting and remitting the Hotel Occupancy Tax (HOT) for all applicable lodging providers within the city limits.

Who Must Collect the Tax?
Any individual or business that owns, operates, manages, or controls a:

...is required to collect the tax on behalf of the City of Caldwell.

Hotel Occupancy Tax Rates

City of Caldwell HOT Rate: 7%
State of Texas HOT Rate: 6% (must be remitted separately to the State)

The combined total tax rate on applicable short-term lodging is 13%.

What Qualifies as a “Hotel”?
For the purposes of this ordinance, a hotel is defined as:

This includes:

What is Not Considered a Hotel?
The following types of lodging are exempt from the City’s Hotel Occupancy Tax:

Short-Term Rental (STR) Businesses
A Short-Term Rental Business is defined as:

This includes rental properties advertised or booked through platforms like:

Use of Hotel Occupancy Tax Revenue
Revenue generated from the City of Caldwell’s Hotel Occupancy Tax is used to:

Questions or Need to File?
For more information or assistance with tax remittance, please contact:

City of Caldwell – Finance Department
979-567-3271 ext. 111

All hotel and short-term rental (STR) operators within the City of Caldwell or its ETJ (Extraterritorial Jurisdiction) are required to register, report, and remit Hotel Occupancy Tax (HOT) in accordance with Chapter 11.04 of the Caldwell Code of Ordinances.

Step 1: Register with the City of Caldwell

All hotel and STR operators must complete the City of Caldwell Hotel Registration Form annually.
This ensures the City has current and accurate information about your business.

Operators must file a Hotel Occupancy Tax Report and remit the tax either monthly or quarterly, depending on eligibility.

Payments must be made via check payable to:
City of Caldwell

You are required to file if you are a:

Important:
Complete and detailed records must be maintained for all receipts, exemptions, and reimbursements. These may be requested for audit or verification purposes.

Filing Monthly | 20th of the month following the reporting period | April 20 for March activity
Filing Quarterly | 20th of the month following the quarter | April 20 for Q1 (Jan–Mar)

If the due date falls on a weekend or City holiday, the next business day becomes the due date.

Reports must be submitted for every period, even if:

No taxes are due, or
No taxable activity occurred

Any person or entity required to collect the Hotel Occupancy Tax (HOT) under the City of Caldwell ordinance must:
File a tax report and remit the collected taxes to the City Secretary for the prior reporting period.

What the Report Must Include
The report must show:

The report must be submitted on a form prescribed by the City Secretary or designee.

Who Files Reports
You must file if you:

Own, operate, manage, or control a hotel, motel, short-term rental (STR), or bed & breakfast within the City of Caldwell or its ETJ, and are collecting occupancy payments from guests

Reporting Periods

The City of Caldwell follows the same reporting schedule as the Texas State Comptroller, in accordance with Section 156.151 of the Texas Tax Code:

Filer TypeReporting PeriodDue DateMonthly Filer | Calendar month | By the 20th of the following month
Quarterly Filer (If qualified) | Calendar quarter | By the 20th of the month following the quarter

Quarterly Filing Eligibility:
If a taxpayer owes less than $500 per month or less than $1,500 per quarter, they may file and pay quarterly instead of monthly. Reports are required even if no tax is due for the period. If the due date falls on a Saturday, Sunday, or City holiday, the due date will be the next business day.

Failure to file reports or remit taxes on time may result in penalties and interest, as outlined in Chapter 11, Article 11.04, Section 11.04.008 of the Caldwell Code of Ordinances.

The City of Caldwell levies a Hotel Occupancy Tax (HOT) at the rate of 7.0% on the cost of a hotel room within:
The City limits, and The Extraterritorial Jurisdiction (ETJ) of the City

This tax applies to any person who pays for the use or possession of a hotel room under a:

Tax Applies If:
The room costs $2.00 or more per day, and it is ordinarily used for sleeping accommodations

Exemptions from the Tax
The following are not subject to the City’s Hotel Occupancy Tax:

Long-Term Guests
A person who occupies the same hotel room for at least 30 consecutive days, with no interruption in payment

Nonprofit Organizations
A corporation or association organized and operated exclusively for:

Religious, Charitable, or Educational purposes
Must not distribute net earnings to any private shareholder or individual

United States Government
The U.S. Government, its agencies, and Officers or employees of the United States, when traveling on official business

State of Texas (with exceptions)
Per Section 156.103 of the Texas Tax Code, most Texas state agencies must pay the tax but may apply for a refund

Exception: Institutions of higher education, as defined by Texas Education Code § 61.003, may be exempt

Requesting a Refund (If Applicable)
If you or your organization qualify for a tax exemption but were charged, you may request a refund:

Submit an application for refund using the form prescribed by the City of Caldwell; Include supporting documentation as required

Important Notes
Hotels and STR operators are required to collect the tax at the time of payment, unless valid exemption documentation is presented

Documentation must be retained to support all exemption or refund claims

Failure to collect, report, or remit tax properly may result in penalties and interest

To remain in compliance with Chapter 11.04 of the Caldwell Code of Ordinances, all hotel and short-term rental operators must file timely reports and remit taxes due. Even if no tax is due, a report must still be filed for the applicable reporting period.

Late Payment Penalties & Interest Schedule
Time After Due Date Penalty or Interest 1 – 30 Days Late | Tax Due + 5% Penalty
31+ Days Late | Tax Due + 10% Annual Interest

Note: Penalties and interest are calculated in addition to the full amount of tax collected.

Reminder:
Reports are due monthly or quarterly, depending on your filing status.
Reports must be submitted even if there is no taxable activity or no payment due for that period.

When a hotel or short-term rental business is sold, both the buyer and seller have important responsibilities under the City of Caldwell’s Hotel Occupancy Tax Ordinance (Chapter 11.04).

Buyer’s Responsibility: Tax Withholding
If you are purchasing a hotel, you must:

Withhold a portion of the purchase price sufficient to cover any outstanding Hotel Occupancy Taxes owed by the seller until one of the following is provided by the seller:

A receipt issued by the City showing all taxes due have been paid OR a certificate issued by the City stating that no taxes are due

Failure to withhold taxes due:
If you do not withhold the amount needed to cover any outstanding tax, you become liable for the unpaid taxes — up to the full value of the purchase price.

How to Request a Tax Clearance Certificate
As the purchaser, you may file a written request with the City to obtain: