HOT Fund Application Information
Now open: Application period for FY2023-24 Hotel Occupancy Tax Event Funding Requests
Learn more about the opportunity to apply for Hotel Occupancy Tax funding for qualifying special events taking place between October 1, 2023 and September 30, 2024.
What is the Hotel Occupancy Tax?
The City of Nassau Bay levies a municipal hotel occupancy tax, which is paid by hotel customers under the guidelines set forth in the Texas Tax Code, Chapter 351. Revenue from the hotel occupancy tax fund may be used only to directly promote tourism and the convention and hotel industry. Section 351.101 of the Texas Tax Code stipulates that the use of hotel occupancy tax funds must directly enhance and promote tourism and the convention and hotel industry, as well as comply with one (1) of the following seven categories:
1) establish or enhance a convention center or visitor information center
2) cover the administrative expenses for registering convention delegates
3) pay for tourism-related advertising and promotions
4) fund programs that enhance the arts, in conjunction with tourism and hotel activity guidelines
5) fund historical restoration or preservation programs designed to augment tourism
6) fund sporting events in which most participants are tourists located in cities and counties with population criteria
7) enhance existing city-owned sport facilities with tournament requirements and population criteria.
Application Overview & Process:
The City of Nassau Bay accepts applications from organizations, businesses, and individuals whose program complies with these statutory requirements. The following steps have been implemented to streamline requests for hotel occupancy tax funds, ensure that requests adhere to statutory requirements, process requests in an efficient manner that coincide with the annual budget review system, and achieve accountability through a post-event process.
Applicant submits completed application form by 5:00 pm on June 1, 2023, to the Nassau Bay Communications team, who serves as the City’s liaison with hoteliers and is responsible for enhancing hotel occupancy and tourism.
The HOT Sub-Committee and the Tourism Committee reviews each application to determine if it meets statutory requirements, analyzes economic impact in terms of hotel rooms and relevant criteria, and provides recommendation by ranking those that will result in the highest return on the City’s investment based on available funding. This list is forwarded to City Council as part of Step 3. The HOT Sub-Committee’s review of applications will include the two-part test delineated by the Texas Tax Code, Section 351.101
City Council considers applications and HOT Sub-Committee/Tourism Committee recommendations, during the City’s annual budget review cycle.
All recipients of HOT funds will be required to submit a post-event form, report within sixty (60) days of the event/program, which documents the use of HOT funds and verifies the direct promotion of Nassau Bay tourism and the hotel industry. Recipients who do not submit post-event information may not be eligible for future funding.
Eligibility & Priority for Hotel Tax Funds:
Priority will be given to events, programs, and partnerships based on their ability to directly promote tourism and the hotel industry in Nassau Bay; in other words, the ability to generate overnight visitors to the city. If an event will not generate hotel activity, it is not eligible for receipt of HOT funds. Entities must complete this application and provide documentation proving the ability to generate overnight visitors.