Texas Comptroller of Public Accounts    STAR System


December 5, 2008


Dear **************:

Thank you for your question concerning a Daily Resort Charge. You said that 
your hotel has historically considered the Daily Resort Charge to be taxable 
for hotel occupancy tax. A client is challenging this and requests something in 
writing to justify the tax.

According to the description you provided, the Daily Resort Charge covers a 
number of services and amenities. The charge includes local, credit card and 
toll-free telephone calls; fitness center and steam room access; daily 
newspapers; in-room coffee and tea; on-property transportation; self parking; 
nature trails; miniature golf; and gratuities for golf bag handling and 
housekeeping personnel.

It is correct that hotel occupancy tax is due on the Daily Resort Charge. Rule 
3.162, regarding the hotel tax base, provides that all charges for items or 
services, other than personal services or charges for the use of a telephone, 
that are furnished in connection with the actual occupancy of the room are 
subject to hotel tax. Personal services do not include charges related to 
cleaning and readying a room for occupancy. Charges for personal services must 
be separately stated to be excluded from the tax base.

While some of the items included with the resort fee are personal services and 
a number of the items would be subject to sales tax if separately stated on the 
guest folio, the fact that the items are lumped together and added as a 
percentage of the room or room package charge makes the Daily Resort Charge 
subject to hotel occupancy tax.

This opinion is based on the facts presented. Other facts, though similar, may 
result in different answers.

Our goal is to provide you with prompt, professional service. Please take a 
moment to complete our on-line survey at 

If you have further questions or need more information, please contact me.


Donald S. Dillard
Oil & Gas, Fuels & Miscellaneous Taxes
Tax Policy Division

-----Original Message-----
From: **************
Sent: Wednesday, December 03, 2008 5:02 PM
To: Donald Dillard
Subject: Tax Question

Mr. Dillard, we at ************** Resort have historically considered the Daily 
Resort Charge which varies from 9 to 12 percent of room or package rate, to be 
taxable at the hotel occupancy tax rate of 6 percent.

I have a client challenging this and requesting something in writing to justify 
the tax.

I have been directed by one of your associates to rule 3.162 however that rule 
excludes "personal services" as hotel occupancy taxable. Please review the 
attached description of our "Daily Resort Charge" and render your opinion so 
that I may justify the tax for our client.

Thank you,


DATE: 12/05/2008