Texas Comptroller of Public Accounts    STAR System


200911472L



TO: Bryant Lomax, Tax Policy 
FROM: Donald Dillard, Tax Policy
SUBJECT: Hotel Occupancy Tax and the Texas Military Forces
DATE: November 6, 2009


Overview:
National Guard of the United States:  The National Guard is the oldest 
component of the United States military forces with roots dating back to the 
English colonies of North America. The Constitution of the United States 
formalized the need for a state-run military force by providing for a 
well-regulated state militia that, today, includes the National Guard. 
[ENDNOTE: (1)]

Federal law defines the National Guard of the United States to mean the Army 
National Guard of the United States and the Air National Guard of the United 
States. Each U.S. state and territory and the District of Columbia has a 
National Guard. [ENDNOTE: (2)]

The National Guard is composed primarily of civilians who serve on a part-time 
basis. The National Guard has both a federal mission and a state mission with 
each guardsman holding membership in the National Guard of the United States 
and in the National Guard of his or her state. [ENDNOTE: (3)]

State National Guard:  A state’s National Guard has both full-time federal 
employees and full-time state employees assigned to that state’s National 
Guard. Full-time federal employees include federal civil service technicians 
and Active Guard/Reserve employed in their respective National Guard status. 
Federal employees receive federal pay and benefits according to rank. [ENDNOTE: 
(4)] Full-time state employees of the National Guard are paid by the state, 
except when called to federal active duty, when they are then paid by the 
United States.

State Adjutant General Departments:  When not under federal control, the state 
National Guard units report to the governors of their respective states. Each 
state and territorial adjutant general oversees and administers that state’s 
National Guard. The Texas Adjutant General’s Department is the state agency 
that provides assistance and support to the Texas Military Forces.

Texas Military Forces:
Texas Military Forces consist of the Texas National Guard and the Texas State 
Guard. [ENDNOTE: (5)] The Texas Governor is the commander-in-chief of the Texas 
military forces, except any portion of the National Guard in the service of the 
United States. [ENDNOTE: (6)]

Texas National Guard:
The Texas National Guard consists of the Texas Army National Guard and the 
Texas Air National Guard. [ENDNOTE: (7)] The mission of the Texas National 
Guard is to provide mission-ready forces, responsive to the community, state 
and nation. [ENDNOTE: (8)]

Texas State Guard:  The Texas State Guard is a citizen-volunteer force that 
augments the other two branches of the Texas Military Forces as force 
multipliers. The mission of the Texas State Guard is to provide mission-ready 
military forces to assist state and local authorities in times of emergences, 
with homeland security and community service through Defense Support to Civil 
Authorities. State Guardsmen serve in an unpaid capacity, except when called to 
state active duty by the Governor of Texas. [ENDNOTE: (9)]

National Guard - Federal Service vs. State Duty:
Federal Active Service:  Under federal law, “active service” for National 
Guardsmen means service on full-time National Guard duty. [ENDNOTE: (10)] This 
includes while on training, at encampments, required drills, field exercises, 
National Guard and military service schools and when attending small arms 
competitions. [ENDNOTE: (11)] When on full-time National Guard duty, guardsmen 
are paid by the United States. [ENDNOTE: (12)]

State Active Duty:  National Guardsmen are in “state active duty” when called 
to serve by the governor of their state. When on state active duty, National 
Guardsmen are paid by their respective state.

Hotel Tax Exemption Status of the Texas Military Forces:
Full-Time Employees of the Texas National Guard:  The Texas Air and Army 
National Guard have both full-time federal employees and full-time state 
employees. When traveling on official business, federal National Guard 
employees may claim exemption from state and local hotel occupancy tax.

Full-time state employees of the National Guard are not exempt from state or 
local hotel occupancy tax, unless called to federal active status. When called 
to federal active status, the employee is paid by the federal government and, 
like full-time federal employees, may claim exemption from state and local 
hotel occupancy tax when traveling on official business of the federal 
government.

Texas National Guard Members:  For tax purposes, Texas National Guardsmen are 
federal employees, except when called to state active duty by the Texas 
Governor. Texas National Guardsmen traveling on official business may claim 
exemption from state and local hotel occupancy tax, except when called to state 
active duty.

When called to state active duty, Texas National Guardsmen are state employees 
and are not exempt from state or local hotel occupancy tax.

Texas State Guard:  The Texas State Guard is made up of volunteers who are paid 
only when called to duty by the Texas Governor and are state employees when on 
active service. Texas State Guardsmen traveling on official business must pay 
any state and local hotel occupancy tax imposed.

Summation:
Full-Time Employees of the Texas National Guard:  Full-time federal employees 
of the Texas National Guard traveling on official business may claim exemption 
from state and local hotel occupancy tax. Proof of exemption is a United States 
military ID indicating the person is a federal employee or documentation the 
employee is traveling on federal status (e.g., federal travel orders).

Full-time state employees of the Texas National Guard traveling on official 
business are not exempt from hotel occupancy tax and must pay any state or 
local hotel tax imposed, except when called to federal active status. The Texas 
National Guard, as a Texas state agency, may request a refund of hotel tax paid 
or reimbursed to state employees.  [ENDNOTE: (13)]

Members of the Texas National Guard:  Texas National Guardsmen traveling on 
official business when on federal service may claim exemption from state and 
local hotel occupancy tax as federal employees. Proof of exemption is 
documentation that the guardsman is traveling on federal status (e.g., federal 
travel orders).

But Texas National Guardsmen traveling on official business when on state 
active duty (called to service by the Governor) may not claim exemption from 
state or local hotel occupancy tax. The Texas National Guard may request a 
refund of hotel tax paid or reimbursed to a guardsman. [ENDNOTE: (14)]

Members of the Texas State Guard:  Texas State Guardsmen traveling on official 
business of the Texas Governor may not claim exemption from state or local 
hotel occupancy tax. The Texas State Guard may request of refund of hotel tax 
paid or reimbursed to a state guardsman. [ENDNOTE: (15)]

ENDNOTE (S)
(1) “Congress shall have the power… To provide for organizing, arming, and 
disciplining, the militia, and for governing such part of them as may be 
employed in the service of the United States, reserving to the states 
respectively, the appointment of the officers, and the authority of training 
the militia according to the discipline prescribed by Congress.” Art. 1, Sect. 
8, U.S. Constitution.
(2) 32 U.S.C. Section 101 and 10 U.S.C. Section 101(d).
(3) Art. 1, Sect. 8, U.S. Constitution.
(4) Texas Adjutant General’s Department (TAGD) Agency Strategic Plan for 
2009-2013
(5) Government Code Section 431.001(3).
(6) Government Code Section 431.002(a).
(7) Government Code Section 431.001(4).
(8) Mission statement of the Texas Air National Guard; the mission statement of 
the Texas Army National Guard omits “the community.”
(9) TAGD Agency Strategic Plan and Texas State Guard Mission Webpage.
(10) “The term “active service” means service on active duty or full-time 
National Guard duty.” 10 U.S.C. Section 101(d)(3)
(11) 32 U.S.C. Section 315, 502, 504, 505 and 513.
(12) “Full-time National Guard duty” means training or other duty, other than 
inactive duty, performed by a member of the Army National Guard of the United 
States or the Air National Guard of the United States in the member’s status as 
member of the National Guard of a State or territory, the Commonwealth of 
Puerto Rico, or the district of Columbia under Section 315, 502, 513, 504, or 
505 of title 32 for which the member is entitled to pay from the United States 
or for which the member has waived pay from the United States.” 32 U.S.C. 
Section 101(5) and 10 U.S.C Section 101(d)(5).
(13) Tax Code Sects. 156.103(b) and (c), 156.154, 351.006(b) and (d) and 
352.007(b) and (d).
(14) Ibid.
(15) Ibid.




ACCESSION NUMBER: 200911472L
SUPERSEDED: N
DOCUMENT TYPE: L
DATE: 11/06/2009
TAX TYPE: HOTEL