Content Overview
The Texas 12-302 form plays a crucial role in helping certain individuals and organizations claim exemptions from hotel occupancy taxes. This certificate is primarily designed for guests affiliated with exempt entities, such as government officials, educational institutions, and charitable organizations, who are traveling on official business. To utilize this form, guests must provide it to the hotel, ensuring they meet specific criteria to qualify for the exemption. Hotel operators are encouraged to verify the guest's affiliation by requesting a photo ID or business card. The form outlines various exemption categories, including those for U.S. federal agencies, foreign diplomats, and Texas state government employees, each with its own requirements. It's important to note that while some entities are exempt from state hotel tax, they may still be liable for local hotel taxes. Additionally, the form includes a declaration section where guests affirm the accuracy of their information and acknowledge the legal implications of misusing the exemption. By understanding the Texas 12-302 form and its requirements, travelers can navigate hotel tax exemptions more effectively, ensuring compliance while minimizing costs during their stays.
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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
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.
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.
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
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
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.
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)
This exemption category includes the following:
•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
Form Specifications
| Fact Name | Details |
|---|---|
| Purpose | The Texas 12-302 form serves to provide a hotel occupancy tax exemption for eligible guests. |
| Eligibility | Employees of exempt entities can claim the exemption, while non-employees must present a completed certificate and pay using the exempt entity's funds. |
| Verification | Hotel operators should request a photo ID or business card to confirm a guest's affiliation with the exempt entity. |
| Exemption Categories | Includes federal agencies, Texas state officials, charitable entities, educational institutions, and religious organizations. |
| Permanent Resident Exemption | No certificate is needed if a guest stays for 30 consecutive days; they are exempt from state and local hotel tax. |
| Record Keeping | Hotels must retain all completed exemption certificates for a period of four years. |
| Legal Reference | The governing law for this form is outlined in Rule 3.161 of the Texas Administrative Code. |
| Criminal Offense | Issuing an exemption certificate for ineligible use can lead to criminal charges, ranging from a Class C misdemeanor to a felony. |
| Submission Instructions | This form should not be sent to the Comptroller of Public Accounts; it is intended for use directly with the hotel. |
Texas 12 302: Usage Guidelines
Completing the Texas 12-302 form is essential for claiming an exemption from hotel occupancy tax. Once filled out, this form should be provided to the hotel to validate the exemption. Ensure all information is accurate and complete to avoid any issues during the check-in process.
- Obtain the Form: Access the Texas 12-302 form from the appropriate source, such as the Texas Comptroller's website or a hotel front desk.
- Fill in the Exempt Entity Information: Write the name of the exempt entity at the top of the form.
- Specify Exempt Entity Status: Indicate whether the entity is religious, charitable, educational, or governmental.
- Provide the Address: Enter the street address, city, state, and ZIP code of the exempt organization.
- Guest Certification: The guest must declare their status by typing or printing their name and signing the form. Include the date of the stay.
- Hotel Name: Write the name of the hotel where the stay is taking place.
- Claim the Exemption: Check the appropriate box for the exemption being claimed. Review the categories to ensure the correct one is selected.
- Review the Form: Double-check all entries for accuracy and completeness.
- Submit the Form: Provide the completed form to the hotel at check-in. Ensure the hotel keeps a copy for their records.
Your Questions, Answered
What is the Texas 12-302 form?
The Texas 12-302 form, also known as the Hotel Occupancy Tax Exemption Certificate, is a document that allows certain entities to claim an exemption from hotel occupancy tax when staying at hotels in Texas. This form must be completed and provided to the hotel to validate the exemption.
Who can use the Texas 12-302 form for tax exemption?
Various entities qualify for tax exemption under this form, including United States federal agencies, foreign diplomats, Texas state government officials and employees, charitable organizations, educational institutions, and religious organizations. Each category has specific requirements that must be met to ensure the exemption is valid.
What information is required on the Texas 12-302 form?
The form requires details such as the name and address of the exempt entity, the type of exemption being claimed, and the guest's certification. The guest must declare their affiliation with the exempt organization and provide their name, hotel name, signature, and the date. It is essential to ensure all information is accurate to avoid legal issues.
Is a photo ID required when using the Texas 12-302 form?
Yes, hotel operators should request a photo ID, business card, or other documents to verify the guest's affiliation with the exempt entity. This verification process helps ensure that only eligible individuals benefit from the tax exemption.
What happens if the exemption is misused?
Issuing an exemption certificate that is known to be used in a manner that does not qualify for the exemptions can lead to serious legal consequences. This can range from a Class C misdemeanor to a felony of the second degree, highlighting the importance of using the form correctly and honestly.
How long should hotels keep records of exemption certificates?
Hotels are required to maintain records, including completed exemption certificates, for a period of four years. This retention is crucial for compliance with tax regulations and to provide documentation if needed in the future.
Where can I find more information about exemptions and the Texas 12-302 form?
Additional information regarding exemptions can be found on the Texas Comptroller's website. This includes a list of organizations that have received letters of exemption and details about the application process. For specific inquiries, individuals can also contact the Comptroller's office directly at 1-800-252-1385.
Common mistakes
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Failing to provide the name of the exempt entity. This is a critical piece of information that must be included.
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Not indicating the exempt entity status. Select the appropriate category such as religious, charitable, educational, or governmental.
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Omitting the address of the exempt organization. Ensure that the street address, city, state, and ZIP code are accurately filled out.
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Incorrectly completing the guest certification section. Make sure the guest name is typed or printed clearly, and the signature is provided.
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Not checking the box for the exemption claimed. This is essential to confirm the specific exemption being requested.
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Forgetting to include a photo ID or other verification documents. Hotel operators should verify the guest's affiliation with the exempt entity.
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Misunderstanding the payment methods. Non-employees must pay with the exempt entity's funds, such as a check or credit card.
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Not recognizing that this form does not need a number to be valid. Ensure all other information is accurate instead.
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Failing to keep records. Hotels must retain completed exemption certificates for a minimum of four years.
Documents used along the form
The Texas Hotel Occupancy Tax Exemption Certificate, known as Form 12-302, is essential for individuals and entities seeking to claim exemptions from hotel taxes. However, there are other forms and documents that often accompany this certificate to ensure proper compliance and verification. Below is a list of these related documents, each with a brief description to help understand their purpose and significance.
- Hotel Tax Exemption Photo ID Card: This card is issued to Texas state government officials and employees. It serves as proof of their exemption from hotel taxes while traveling on official business.
- Comptroller-Issued Letter of Exemption: Charitable and religious entities must present this letter to qualify for tax exemptions. It confirms their status as recognized organizations under Texas law.
- Federal Tax Exemption Card: Foreign diplomats need this card, issued by the U.S. Department of State, to exempt themselves from hotel taxes. It must not specifically exclude hotel occupancy tax.
- Business Card: A business card may be requested by hotel operators to verify the affiliation of the guest with an exempt organization. This helps confirm the legitimacy of the exemption claim.
- Written Notice for Permanent Resident Exemption: Guests seeking a permanent resident exemption must provide written notice to the hotel. This exemption applies to stays of 30 consecutive days or more.
- Travel Authorization Document: Some organizations may require a travel authorization document for their employees. This verifies that the travel is sanctioned by the exempt entity and is for official business.
- Invoice or Receipt: Hotels may provide an invoice or receipt to document the transaction. This record is important for both the hotel and the guest, especially for accounting and tax purposes.
- Exemption Claim Form: This form is sometimes used by entities to formally claim their exemption status. It may require additional information about the nature of the exemption being claimed.
- Tax Exemption Application: Organizations seeking to obtain a letter of exemption from the Comptroller must complete this application. It outlines the basis for their tax-exempt status.
Understanding these documents can help ensure a smooth process when claiming hotel tax exemptions in Texas. Each form serves a unique purpose and is integral to the compliance process for both the guest and the hotel. Being prepared with the necessary paperwork can facilitate a hassle-free experience during travel.
Similar forms
- IRS Form 990: Similar to the Texas 12 302 form, IRS Form 990 serves as an informational return that tax-exempt organizations must file annually. Both documents require organizations to disclose their exempt status and financial information, ensuring transparency and compliance with tax regulations.
- Texas Sales Tax Exemption Certificate: This certificate allows qualifying entities to make purchases without paying sales tax. Like the Texas 12 302 form, it requires the entity to declare its exempt status and provide relevant details, thereby facilitating tax exemptions on specific transactions.
- Hotel Tax Exemption Forms in Other States: Many states have their own versions of hotel tax exemption forms that share similarities with the Texas 12 302 form. These documents typically require identification of the exempt entity, verification of the exemption type, and the guest's signature, ensuring proper adherence to local tax laws.
- Federal Tax Exemption Application (Form 1023): This form is used by organizations seeking federal tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. Like the Texas 12 302 form, it requires detailed information about the organization’s purpose, operations, and financials to verify eligibility for tax exemptions.
Dos and Don'ts
When filling out the Texas 12-302 form for hotel occupancy tax exemption, there are some key points to keep in mind. Here’s a list of what you should and shouldn't do:
- Do ensure accuracy: Double-check all information before submitting the form. Mistakes can lead to complications or denial of the exemption.
- Do provide necessary documentation: Attach any required documents, such as a photo ID or business card, to verify your affiliation with the exempt entity.
- Do check the exemption category: Make sure you select the correct exemption category that applies to your situation.
- Do keep a copy: Retain a copy of the completed form for your records, as hotels must keep records for four years.
- Don't forget to sign: Ensure that the guest signature is included; without it, the form may be considered invalid.
- Don't submit the form to the Comptroller: This form is meant to be given to the hotel, not sent to any government office.
- Don't assume all entities are exempt: Verify that your organization qualifies under the exemption categories listed on the form.
- Don't use personal funds: Non-employees must pay with the exempt entity's funds to qualify for the exemption.
Misconceptions
Here are four common misconceptions about the Texas 12-302 form:
- Misconception 1: The form requires a specific number to be valid.
- Misconception 2: All employees of exempt organizations can automatically claim tax exemption.
- Misconception 3: Charitable entities are exempt from both state and local hotel taxes.
- Misconception 4: Permanent residents must submit a certificate to claim their exemption.
This is incorrect. The Texas 12-302 form does not need a number to be valid. It only requires the necessary information to be filled out correctly.
This is not true. Only employees traveling on official business can claim the exemption. Non-employees must provide a completed certificate and pay with the exempt entity's funds.
This is misleading. Charitable entities are exempt from state hotel tax, but they are not exempt from local hotel tax. It is important to understand the distinction.
This is false. A permanent resident does not need to submit a certificate if they have given written notice and stay for at least 30 consecutive days. They are exempt from the first day of their stay.
Key takeaways
Filling out the Texas 12 302 form can be straightforward if you keep a few key points in mind. Here are some important takeaways to help you navigate the process:
- Purpose of the Form: The Texas 12 302 form is used to claim an exemption from hotel occupancy tax.
- Who Can Use It: Employees of exempt entities can use the form, while non-employees must have the exempt entity complete the form and pay with its funds.
- Verification Required: Hotel operators should ask for a photo ID or business card to confirm the guest's affiliation with the exempt entity.
- Exemption Categories: Various exemptions exist, including those for federal agencies, state officials, charitable organizations, and educational institutions.
- Permanent Resident Exemption: If a guest stays for 30 consecutive days, they do not need to submit a certificate for the exemption.
- Record Keeping: Hotels must keep completed exemption certificates for four years for compliance purposes.
- No Submission to Comptroller: Do not send the completed form to the Comptroller of Public Accounts; it is meant for hotel records only.
- Criminal Offense Warning: Providing a false exemption certificate can lead to serious legal consequences, including misdemeanors or felonies.
By understanding these points, you can effectively fill out and utilize the Texas 12 302 form to ensure you receive the appropriate tax exemptions during your hotel stay.