Hotel Occupancy Tax (HOT) Overview
The City of Alvin collects a Hotel Occupancy Tax (HOT) from visitors who stay overnight in local lodging establishments, including hotels, motels, and short-term rentals. This tax is paid by the guest at the time of their stay and is dedicated by Texas law to support tourism and the hotel industry.
Unlike sales or property taxes, HOT funds may only be used for specific, tourism-related purposes outlined in Chapter 351 of the Texas Tax Code. These funds are reinvested back into the community to attract visitors, increase overnight stays, and support projects that enhance Alvin as a destination.
How HOT Funds May Be Used
Under state law, all HOT expenditures must meet two legal requirements:
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Directly promote tourism and the hotel industry, and
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Fall within one of the nine allowable categories established by state statute.
Eligible uses include, but are not limited to:
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Tourism advertising, marketing, and promotional efforts
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Visitor information services and destination marketing initiatives
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Cultural arts programs that attract visitors
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Historical preservation projects that encourage tourism
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Tourism-related events and festivals that generate overnight stays
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Certain sporting events and facilities that bring visitors to the area
HOT funds cannot be used for general government operations, routine maintenance, or projects that only benefit local residents without a clear tourism impact.
Hotel Occupancy Tax Grants
The City of Alvin, through Visit Alvin, offers Hotel Occupancy Tax Grant funding to eligible organizations, events, and projects that align with state law and help promote Alvin as a tourism destination.
Grant funding is intended to support initiatives that:
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Attract visitors from outside the local area
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Encourage overnight hotel stays
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Promote Alvin’s cultural, historical, and recreational assets
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Strengthen the local tourism economy
All grant applications are evaluated to ensure compliance with state requirements and to confirm that proposed activities directly support tourism and hotel activity.
Grant Cycle & Timeline
Hotel Occupancy Tax Grants are awarded on a fiscal year basis.
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Fiscal Year: October 1 – September 30
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2026–2027 Fiscal Year Grant Cycle:
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Applications open: June 2026
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Funding period begins: October 2026
Applicants are encouraged to plan ahead and ensure their projects, marketing efforts, and reporting requirements align with the fiscal year timeline.
Accountability & Reporting
Organizations receiving HOT funding are required to:
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Use funds only for approved, eligible expenses
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Track and document how funds are spent
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Submit post-event or post-project reports demonstrating tourism impact
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Show how the funded activity promoted Alvin to visitors and supported overnight stays
These requirements ensure transparency, accountability, and continued compliance with Texas law.
Questions or More Information
If you have questions about Hotel Occupancy Tax funding, eligibility, or the application process, please contact Visit Alvin. We’re happy to help guide organizations through the process and ensure projects align with state guidelines and community goals.