The Texas 12-302 form is a Texas Hotel Occupancy Tax Exemption Certificate that allows employees of exempt entities, such as religious, charitable, educational, and governmental organizations, to claim exemption from hotel taxes when traveling on official business. By presenting a completed certificate, along with a form of identification for verification at hotels, eligible individuals can avoid the hotel occupancy tax, streamlining the process for both guests and hotel operators. For detailed guidance on filling out the form and ensuring your eligibility for exemption, click the button below.
In Texas, travelers and organizations seeking relief from hotel occupancy taxes find an essential resource in the Texas Hotel Occupancy Tax Exemption Certificate, Form 12-302. This document plays a pivotal role for qualifying entities—ranging from government officials, charitable organizations, to educational and religious entities—enabling them to claim exemption from hotel taxes under specific conditions. The form simplifies the process for hotel operators and guests, stipulating that it's the guest's duty to present proof of their affiliation with an exempt entity, thus ensuring transparency and adherence to regulation. Notably, the form highlights various exemption categories, elucidating on the criteria for federal agencies, state officials, and others, including the necessity of direct payment by the exempt entity in certain cases. Additionally, it addresses the qualifications for a permanent resident exemption after a continuous 30-day stay, laying out the guidelines for both hotel operators and guests to follow. With a thoughtful design that caters to both clarity and compliance, Form 12-302 underscores Texas's commitment to providing tax relief to eligible bodies while maintaining rigorous standards to prevent misuse. This, coupled with detailed instructions on the back of the form and accessible online resources, ensures that the process for claiming hotel tax exemptions in Texas is both efficient and equitable.
12-302
(Rev.2-17/19)
Texas Hotel Occupancy Tax Exemption Certiicate
Provide completed certiicate to hotel to claim exemption from hotel tax. Hotel operators should request a photo ID, business card or other document to verify a guest’s afiliation with the exempt entity. Employees of exempt entities traveling on oficial business can pay in any manner. For non-employees to be exempt, the exempt entity must provide a completed certiicate and pay the hotel with its funds (e.g., exempt entity check, credit card or direct billing). This certiicate does not need a number to be valid.
Name of exempt entity
Exempt entity status (Religious, charitable, educational, governmental)
Address of exempt organization (Street and number)
City, State, ZIP code
Guest certiication: I declare that I am an occupant of this hotel on oficial business sanctioned by the exempt organization named above and that all information shown on this document is true and correct. I further understand that it is a criminal offense to issue an exemption certiicate to a hotel that I know will be used in a manner that does not qualify for the exemptions found in the hotel occupancy tax and other laws. The offense may range from a Class C misdemeanor to a felony of the second degree.
Guest name (Type or print)
Hotel name
Guest signature
Date
Exemption claimed
Check the box for the exemption claimed. See Rule 3.161: Deinitions, Exemptions, and Exemption Certiicate.
United States Federal Agencies or Foreign Diplomats. Details of this exemption category are on back of form. This category is exempt from state and local hotel tax.
Texas State Government Oficials and Employees. (An individual must present a Hotel Tax Exemption Photo ID Card). Details of this exemption category are on back of form. This limited category is exempt from state and local hotel tax. Note: State agencies and city, county or other local government entities and oficials or employees are not exempt from state or local hotel tax, even when traveling on oficial business.
Charitable Entities. (Comptroller-issued letter of exemption required.) Details of this exemption category are on back of form. This category is exempt from state hotel tax, but not local hotel tax.
Educational Entities. Details of this exemption category are on back of form. This category is exempt from state hotel tax, but not local hotel tax.
Religious Entities. (Comptroller-issued letter of exemption required.) Details of this exemption category are on back of form. This category is exempt from state hotel tax, but not local hotel tax.
Exempt by Other Federal or State Law. Details of this exemption category are on back of form. This category is exempt from state and local hotel tax.
Permanent Resident Exemption (30 consecutive days): An exemption certiicate is not required for the permanent resident exemption. A permanent resident is exempt the day the guest has given written notice or reserves a room for at least 30 consecutive days and the guest stays for 30 consecutive days, beginning on the reservation date. Otherwise, a permanent resident is exempt on the 31st consecutive day of the stay and is not entitled to a tax refund on the irst 30 days. Any interruption in the resident’s right to occupy a room voids the exemption. A permanent resident is exempt from state and local hotel tax.
Hotels should keep all records, including completed exemption certiicates, for four years.
Do NOT send this form to the Comptroller of Public Accounts.
Form 12-302 (Back)(Rev.2-17/19)
Texas Hotel Occupancy Tax Exemptions
See Rule 3.161: Deinitions, Exemptions, and Exemption Certiicate for additional information.
United States Federal Agencies or Foreign Diplomats (exempt from state and local hotel tax)
This exemption category includes the following:
•the United States federal government, its agencies and departments, including branches of the military, federal credit unions, and their employees traveling on oficial business;
•rooms paid by vouchers issued by the American Red Cross and the Federal Emergency Management Agency; and
•foreign diplomats who present a Tax Exemption Card issued by the U.S. Department of State, unless the card speciically excludes hotel occupancy tax.
Federal government contractors are not exempt.
Texas State Government Oficials and Employees (exempt from state and local hotel tax)
This exemption category includes only Texas state oficials or employees who present a Hotel Tax Exemption Photo Identiication Card. State employees without a Hotel Tax Exemption Photo Identiication Card and Texas state agencies are not exempt. (The state employee must pay hotel tax, but their state agency can apply for a refund.)
Charitable Entities (exempt from state hotel tax, but not local hotel tax)
This exemption category includes entities that have been issued a letter of tax exemption as a charitable organization and their employees traveling on oficial business. See website referenced below.
A charitable entity devotes all or substantially all of its activities to the alleviation of poverty, disease, pain and suffering by providing food, clothing, medicine, medical treatment, shelter or psychological counseling directly to indigent or similarly deserving members of society.
Not all 501(c)(3) or nonproit organizations qualify under this category.
Educational Entities (exempt from state hotel tax, but not local hotel tax)
This exemption category includes in-state and out-of-state school districts, private or public elementary, middle and high schools, Texas Regional Education Service Centers and Texas institutions of higher education (see Texas Education Code Section 61.003) and their employees traveling on oficial business.
A letter of tax exemption from the Comptroller of Public Accounts as an educational organization is not required, but an educational organization might have one.
Out-of-state colleges and universities are not exempt.
Religious Organizations (exempt from state hotel tax, but not local hotel tax)
This exemption category includes nonproit churches and their guiding or governing bodies that have been issued a letter of tax exemption from the Comptroller of Public Accounts as a religious organization and their employees traveling on oficial business. See website referenced below.
Exempt by Other Federal or State Law (exempt from state and local hotel tax)
•entities exempted by other federal law, such as federal land banks and federal land credit associations and their employees traveling on oficial business; and
•Texas entities exempted by other state law that have been issued a letter of tax exemption from the Comptroller of Public Accounts and their employees traveling on oficial business. See website referenced below. These entities include the following:
•nonproit electric and telephone cooperatives,
•housing authorities,
•housing inance corporations,
•public facility corporations,
•health facilities development corporations,
•cultural education facilities inance corporations, and
•major sporting event local organizing committees.
For Exemption Information
A list of charitable, educational, religious and other organizations that have been issued a letter of exemption is online at www.comptroller.texas.gov/taxes/exempt/search.php. Other information about Texas tax exemptions, including applications, is online at www.comptroller.texas.gov/taxes/exempt/index.php. For questions about exemptions, call 1-800-252-1385.
Filling out the Texas 12-302 form is an essential process for those seeking to claim a hotel tax exemption in the state of Texas. It is primarily utilized by employees or representatives of exempted entities—such as government agencies, educational institutions, religious organizations, and certain charitable entities—when they are traveling on official business. Ensuring that the form is completed accurately is crucial to successfully receiving the exemption. The following steps are designed to help navigate through the form without much hassle.
After completing the form, ensure to provide it to the hotel operator alongside any supplementary documentation required, such as a photo ID or business card, to substantiate the guest’s affiliation with the exempt entity. Remember, the form itself does not need a number to be considered valid, but accuracy and honesty in completing it are imperative. This process does not conclude with the submission of the form to the hotel; the exempt entity may be required to maintain a copy for record-keeping purposes, usually for four years. However, this completed form should not be sent to the Comptroller of Public Accounts. Taking these steps thoughtfully ensures compliance with Texas hotel occupancy tax laws and facilitates a smoother transaction with hotel operators.
The Texas 12-302 form is a Texas Hotel Occupancy Tax Exemption Certificate. It is used by guests who are staying at hotels and qualify for an exemption from the state's hotel occupancy tax. These guests are typically employees or representatives of exempt entities, such as government agencies, charitable organizations, educational institutions, religious entities, or other organizations exempt by federal or state law. The form is provided to the hotel to claim the exemption.
This form can be used by individuals who are:
To qualify for a hotel occupancy tax exemption, an entity must fall into one of the specified categories, such as being a United States Federal Agency, a Texas State Government entity, a charitable, educational, or religious organization, or other entities exempted by federal or state law. Additionally, documentation such as a comptroller-issued letter of exemption may be required for certain categories.
For non-employees to claim a tax exemption, the exempt entity must provide them with a completed Texas 12-302 form and pay for the hotel stay using the entity's funds. This can be done through methods like an entity-issued check, credit card, or direct billing.
No, federal government contractors do not qualify for the hotel tax exemption under this form. The exemption categories specifically include employees of United States federal government agencies and departments, but not contractors.
No, a Texas 12-302 exemption certificate is not required for guests who qualify as permanent residents. A permanent resident is someone who reserves a room for at least 30 consecutive days and stays for those days without interruption. The exemption applies from the 31st consecutive day onward.
Hotel operators are required to keep all records, including completed Texas 12-302 forms, for a period of four years. These documents should be readily available upon request but should not be sent to the Comptroller of Public Accounts.
More information about Texas hotel occupancy tax exemptions, including a list of organizations that have been issued a letter of exemption, is available online. Visit the Texas Comptroller's website at www.comptroller.texas.gov/taxes/exempt/index.php . For specific questions about exemptions, you can call 1-800-252-1385.
One common mistake is providing incomplete information regarding the exempt entity, such as not fully listing the entity’s name or address. This information is critical for the hotel to verify the eligibility for a tax exemption. Without complete details, there's a higher possibility that the exemption will not be processed correctly.
Individuals often err by incorrectly marking the exemption claimed or not checking any exemption at all on the form. Each exemption category has specific requirements and not choosing one or selecting the wrong category can result in the rejection of the tax exemption claim.
For instance, marking “Texas State Government Officials and Employees” without possessing a Hotel Tax Exemption Photo Identification Card leads to an invalid claim since the form explicitly mentions the necessity of this ID card.
Another mistake is the failure to provide supporting documentation when it is required for certain categories of exemptions. For example, charitable and religious entities must present a comptroller-issued letter of exemption. Not having this letter readily available or failing to produce it can prevent the exemption from being granted.
Lastly, misunderstanding the eligibility criteria for exemptions can lead to incorrect filings. For example, federal government contractors mistakenly believe they qualify under the “United States Federal Agencies or Foreign Diplomats” category. However, the form clearly states that federal government contractors are not exempt, leading to confusion and potential misuse of the exemption claim.
When dealing with exemptions from Texas hotel occupancy taxes, the Texas 12-302 form is pivotal for certain entities to claim their exemption status. However, this form often does not stand alone in the documentation process. Various other forms and documents might be necessary to support or supplement the information provided in the Texas 12-302 form, ensuring compliance and proper verification of exemption eligibility.
In conclusion, while the Texas 12-302 form is a critical document for claiming hotel tax exemptions, it is often just a part of a broader documentation requirement. Various other forms and documents complement the 12-302 form, catering to different aspects of the exemption process, from proving the eligibility of the entity and its employees to documenting the nature and payment method of the stay. Ensuring that all pertinent documentation is in order simplifies compliance and verification processes, making it easier for exempt entities to enjoy the benefits to which they are entitled under Texas law.
The Texas 12-302 form, a Texas Hotel Occupancy Tax Exemption Certificate, is designed to facilitate tax exemption claims for eligible entities staying in hotels. Its structure and purpose bear similarity to various other forms and documents used in financial and regulatory processes. For instance, the IRS Form W-9, Request for Taxpayer Identification Number and Certification, serves a complementary function. The W-9 is widely utilized by individuals and entities to provide their taxpayer identification number to entities that will pay them income, ensuring the proper reporting to the IRS. Like the 12-302, it plays a critical role in tax documentation by asserting the validity of the provided information under penalty of perjury.
Another related document is the Uniform Sales & Use Tax Exemption/Resale Certificate – Multijurisdiction, provided by the Streamlined Sales Tax Governing Board. This certificate is used by businesses to purchase goods tax-free that will be resold. Similar to the Texas 12-302 form, it requires detailed information about the purchaser's tax-exempt status across multiple states. Both forms prevent tax being charged unnecessarily, though they apply to different types of taxes and transactions.
The GSA Form 1169, Statement of Tax Exemption, is a federal document used by government employees traveling on official business to claim exemption from state or local taxes, notably for lodging. Although it is federal and the Texas 12-302 is state-specific, both forms certify the exemption status of lodgers in connection with official duties, enabling qualifying individuals or groups to avoid certain taxes during their stays.
The Certificate of Exempt Status (CES), issued by various state departments (e.g., Departments of Revenue), resembles the Texas 12-302 form in its purpose. The CES verifies that an organization or entity is recognized as exempt from state sales and use taxes on purchases. While the Texas form applies specifically to hotel occupancy taxes, both documents formalize an exemption based on criteria set by tax authorities.
Exemption certificates for educational institutions, which may be specific to different states, share objectives with the Texas 12-302 form. These certificates allow schools, colleges, and universities to purchase goods and services without paying sales tax, under specific conditions. They, similar to the 12-302 form, identify entities entitled to tax exemptions, albeit in the context of sales tax rather than occupancy tax.
Nonprofit Exemption Certificates, which are issued to 501(c)(3) organizations, offer a similar pathway to tax relief as the Texas 12-302 form. These certificates allow nonprofits to make tax-exempt purchases that directly relate to their operational purposes. While the focus differs, both documents fundamentally validate an organization's tax-exempt status for specific financial transactions.
The Texas Direct Payment Exemption Certificate enables qualifying businesses to make tax-free purchases by assuming direct responsibility for the payment of sales or use taxes. Comparable to the Texas 12-302 form, it provides a mechanism for entities to exercise their tax exemption rights, albeit in a broader spectrum of transactions beyond lodging.
The U.S. Government Printing Office (GPO) Express Program Membership Application, while more niche, shares the principle of allowing governmental entities to receive services under a tax-exempt status, similar to the Texas 12-302's application to hotel stays. This program specifically caters to federal agencies' printing needs, reflecting the wide-ranging contexts in which tax-exempt documentation is relevant.
The Diplomatic Tax Exemption Cards, issued by the U.S. Department of State, provide foreign diplomats immunity from certain taxes during their stay in the U.S. Similar to the Texas 12-302 form, which exempts qualifying individuals from hotel occupancy taxes, these cards apply a broader range of tax exemptions, reinforcing the principle of tax-exempt status for eligible foreign officials.
Lastly, the Veteran Exemption Certificate, provided by state Departments of Veterans Affairs, grants tax exemptions to veterans on property and purchases, recognizing their service. While different in application, these certificates, like the Texas 12-302 form, are key to identifying individuals and entities eligible for exemption from specific tax obligations, underscoring a societal acknowledgment of service and contribution.
When filling out the Texas 12-302 form for a Hotel Occupancy Tax Exemption Certificate, there are important dos and don'ts to follow for a smooth and compliant process.
It is critical to follow these guidelines when completing Form 12-302 to ensure compliance with Texas tax laws and to secure the applicable hotel tax exemptions legitimately and efficiently.
Understanding the Texas 12-302 form, related to the Texas Hotel Occupancy Tax Exemption Certificate, involves clearing up common misconceptions. Here, we delve into these misconceptions to ensure clarity and compliance.
Misconception 1: The form applies only to Texas residents.
Contrary to this belief, the Texas 12-302 form is applicable to a wide range of guests, including those from federal agencies, foreign diplomats, and residents outside of Texas, provided they meet specific exemption criteria.
Misconception 2: Any government employee is exempt from hotel taxes.
Only employees from specific branches of the government, including federal agencies or Texas state officials who have a Hotel Tax Exemption Photo Identification Card, are exempt. Employees of state agencies without this card must pay the hotel tax upfront and can then apply for a refund.
Misconception 3: All non-profit organizations are automatically exempt from hotel taxes.
This is not the case. Charitable entities exempt from state hotel tax, but not local hotel tax, must have a letter of tax exemption as a charitable organization. Not all 501(c)(3) organizations are qualified under this exemption category.
Misconception 4: Educational institutions do not need to prove their tax-exempt status.
While true that educational entities are exempt from state hotel tax, they may still be required to document their exempt status under certain conditions, despite not necessarily needing a letter of tax exemption from the Comptroller.
Misconception 5: All bookings by exempt entities are tax-exempt regardless of payment method.
For a booking to be tax-exempt, the payment must be made directly by the exempt entity using the entity's funds, such as an exempt entity check or credit card. Employee personal payments are not considered exempt, even if reimbursed later.
Misconception 6: The exemption certificate requires a number to be valid.
The Texas 12-302 form clearly states that a certificate number is not necessary for the document to be valid, debunking this common misunderstanding.
Misconception 7: Federal contractors are exempt under the USA federal agency exemption.
Despite being federal contractors, these individuals do not qualify under the federal agency exemption. Only direct employees of the United States federal government and its departments are exempt.
Misconception 8: The form is lengthy and complicated.
The 12-302 form is structured to be straightforward, requiring only essential information about the exempt entity and the guest. It guides the user through the process of claiming exemption from hotel tax.
Misconception 9: Permanent residents must submit an exemption certificate.
A common misconception is that permanent residents, defined as guests staying for 30 consecutive days or more, must submit an exemption certificate. In reality, they automatically become exempt from the 31st day of their stay, without needing to submit this form.
Understanding the precise conditions and requirements of the Texas Hotel Occupancy Tax Exemption Certificate is crucial for both hotel operators and guests seeking tax exemption. Clearing up these misconceptions ensures that exemptions are correctly claimed and processed, avoiding unnecessary misunderstandings and non-compliance.
Understanding how to properly fill out and utilize the Texas 12-302 form, the Texas Hotel Occupancy Tax Exemption Certificate, is important for individuals and entities eligible for tax exemptions during their hotel stays in Texas. Here are four key takeaways for those aiming to claim such exemptions:
In conclusion, when properly filled out and accompanied by the appropriate documentation, the Texas 12-302 form enables eligible individuals and entities to claim exemptions from hotel occupancy taxes, thereby offering significant savings during their stay. Understanding the detailed requirements and responsibilities outlined in this document is essential for all parties involved.
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