The Texas 12 302 form is a certificate used to claim an exemption from hotel occupancy tax for certain entities, such as government officials, charitable organizations, and educational institutions. By completing this form, guests can ensure they are not charged hotel tax while traveling for official business on behalf of an exempt organization. If you believe you qualify for this exemption, fill out the form by clicking the button below.
When filling out the Texas 12-302 form, it is important to follow specific guidelines to ensure accuracy and compliance. Here is a list of things you should and shouldn't do:
By adhering to these guidelines, you can effectively navigate the process of claiming an exemption from hotel occupancy tax in Texas.
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.
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The Texas Hotel Occupancy Tax Exemption Certificate (Form 12-302) is often used in conjunction with several other forms and documents to facilitate tax exemptions for hotel stays. Understanding these documents can help ensure that individuals and organizations properly claim their exemptions. Here is a list of related forms and documents commonly used alongside the Texas 12-302 form.
Utilizing the appropriate forms and documents alongside the Texas 12-302 can streamline the process of claiming hotel tax exemptions. Ensuring that all necessary paperwork is in order will help avoid potential issues during travel and lodging arrangements.
Filling out the Texas 12-302 form can be straightforward, but many individuals make common mistakes that could lead to complications. One frequent error is failing to provide the complete name of the exempt entity. This information is crucial as it identifies the organization for which the exemption is being claimed. Omitting or misspelling this name can result in denial of the exemption.
Another mistake often seen is not checking the correct box for the exemption claimed. The form includes multiple categories, such as federal agencies, charitable entities, and educational institutions. Each category has specific requirements and implications. Misidentifying the exemption can lead to unexpected tax liabilities.
Many people also neglect to include the address of the exempt organization. This detail is necessary for verification purposes. Without a complete address, hotel operators may question the validity of the exemption, potentially leading to tax charges that could have been avoided.
Inaccurate guest certification is another common issue. Guests must declare that they are traveling on official business for the exempt organization. If this declaration is not truthful, it could result in legal consequences. Individuals should ensure that all information provided is accurate and complete to avoid any misunderstandings.
Some individuals fail to provide a signature on the form. A signature is a critical component that signifies the guest's agreement with the information provided. Without it, the form is incomplete and may not be accepted by the hotel.
Additionally, many overlook the importance of including the date of the stay. This date is essential for record-keeping and verifying the timeline of the exemption. An absent or incorrect date can lead to complications during audits or reviews.
Another mistake is not having the necessary supporting documents ready. Depending on the exemption category, additional documentation such as a photo ID or a letter of exemption may be required. Failing to provide these documents can result in the hotel rejecting the exemption.
People also sometimes forget that this form should not be sent to the Comptroller of Public Accounts. Instead, it is intended to be provided directly to the hotel. Misunderstanding this can lead to unnecessary delays and confusion regarding the exemption.
Lastly, individuals often fail to keep a copy of the completed form for their records. Maintaining a copy can be invaluable in case of disputes or questions about the exemption in the future. Proper record-keeping is a best practice that can prevent many issues down the line.
Understanding the Texas Hotel Occupancy Tax Exemption Certificate, also known as the 12-302 form, can be challenging. Many people hold misconceptions about this form and its requirements. Here are nine common misunderstandings:
Understanding these misconceptions can help ensure that the Texas 12-302 form is used correctly, allowing eligible entities to benefit from the appropriate tax exemptions.
Understanding the Texas 12-302 form is essential for individuals and entities seeking to claim exemptions from hotel occupancy taxes. Here are five key takeaways regarding the use of this form:
Completing the Texas Hotel Occupancy Tax Exemption Certificate (Form 12-302) is a straightforward process. This form allows eligible individuals and organizations to claim an exemption from hotel occupancy taxes. After filling out the form, it must be provided to the hotel to validate the exemption. Below are the steps to accurately complete the form.
Once the form is filled out, it should be handed to the hotel. This step is crucial to ensure the exemption is recognized and processed correctly. Remember, the hotel will likely request additional verification, such as a photo ID or business card, to confirm the guest's affiliation with the exempt entity.