Hotel Occupancy Tax Funding

Texas Tax Code Chapter 351 allows the City of Marble Falls to collect Hotel Occupancy Tax (HOT) from hotels, motels, bed & breakfasts, and other lodging facilities.   Under State Law, the revenue from the HOT may be used only to directly promote tourism and the convention and hotel industry.

The City of Marble Falls may provide funding through Hotel Occupancy Tax (HOT) funds for events that help bring visitors to the area and support local hotels and tourism. Each year, the Marble Falls City Council decides how much HOT funding will be available and distributes it to organizations that apply.

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

Part One: Heads in Beds
The first element of the two-part test is this: every expenditure of hotel taxes must generally put "heads in beds. State law requires local hotel tax expenditures to promote tourism and the convention and hotel industry."  Every funded project must either attract overnight tourists to the city's hotels and motels or have some other economic impact at an area hotel.

Part Two: The Nine Categories. Every expenditure MUST also clearly fit into one of nine statutorily authorized categories: (1) convention and visitor centers; (2) convention delegate registration; (3) advertising and promotional programs to attract tourists and visitors to the city; (4) promotion of the arts; (5) historical restoration and preservation; (6) sporting events in a county under one million in population; (7) enhancing or upgrading existing sports facilities or sports fields (only in certain cities); (8) tourist transportation systems; and (9) signage directing the public to sights and attractions that are frequently visited by hotel guests in the city.

An applicant must meet both parts of the test to be considered for HOT funding. 

Hotel Occupancy Tax (HOT) Funding Applications

Applications for funding are considered during the annual HOT Meeting, which is typically held in June.

Application Deadline

To be considered for funding, applicants must:

  • Complete the HOT funding application

  • Include all required attachments

  • Submit the application to the City Secretary no later than June 1

Applications received after the deadline may not be considered.

Application Review Process

  1. Submission – Applicants submit a completed application and supporting documents by June 1.

  2. Presentation – Applicants will have the opportunity to present their proposal to the HOT Advisory Committee.

  3. Committee Review – The HOT Advisory Committee evaluates all applications and develops funding recommendations.

  4. City Council Approval – Final funding decisions are made by the City Council based on the committee’s recommendations.

For questions about the application process, please contact the City Secretary’s Office at 830-693-3615.