HOT Sponsorship Requirements

The City of Kemah is required by Texas State law to collect a Hotel Occupancy Tax (HOT) from all lodging facilities located within the city limits. The revenue generated by this tax can only be used to promote tourism and the convention and hotel industry. The following are the specific ways in which the HOT revenue can be utilized:

1. Convention Centers and Visitor Centers: The acquisition, construction, improvement, enlargement, equipping, repair, operation, and maintenance of convention center facilities, visitor information centers, or both.

2. Registration of Convention Delegates: Providing facilities, personnel, and materials for the registration of convention delegates or registrants.

3. Advertising, Solicitation, and Promotions: Conducting promotional programs and advertising to attract tourists, convention delegates, or registrants to the municipality or its vicinity.

4. Promotion of the Arts: Encouraging, promoting, improving, and applying the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms.

5. Historical Restoration and Preservation: Historical restoration and preservation projects or activities, or advertising and conducting solicitation and promotional programs to encourage tourists and convention delegates to visit preserved historic sites, museums, or exhibits.

6. Sporting Event Expense: Funding certain expenses, including promotional expenses, directly related to a sporting event within counties with a population under 1 million.

7. Sporting Facilities: Enhancing or upgrading existing sports facilities or sports fields for certain municipalities.

8. Transportation of Tourists: Funding transportation systems for transporting tourists from hotels to and near the city to any of the following destinations: the commercial center of the city, a convention center in the city, other hotels in or near the city, tourist attractions in or near the city.

9. Directional Signage: Signage directing the public to sights and attractions that are frequently visited within the municipality.

10. Signage: Signage directing tourists to sights and attractions frequently visited by hotel guests in the municipality.

Additional Information can be found here:

What Cities Need to Know to Administer Hotel Taxes (June 2023)
Hotel Tax Two-Step
Municipal Funding for the Arts Using HOT Revenues
Tax Code Chapter 351. Municipal Hotel Occupancy Taxes