The purpose of the City of Buda Hotel Occupancy Tax Reimbursement Grant (HOT grant) is to provide hotel occupancy tax funds as a resource to organizations who are hosting tourism related events and activities that will bring visitors to Buda for overnight stays in Buda hotels.
In order to qualify for HOT grant funding, the organization’s event/activity expenditures must also fit into one of the nine allowable uses of the tax as required by Texas state law. The Hotel Occupancy Tax Reimbursement Grant is reimbursement only. Funding is limited and is awarded on a first come, first serve basis starting at the beginning of the City’s fiscal year, which runs October 1 to September 30. Additionally, funding is determined based on the applicant’s ability to provide evidence of return on investment for the City of Buda hotel occupancy tax funds. Applications are accepted four times a year.
The Texas Tax Code provides a set of rules that state how the revenue from the HOT may be used. According to the Texas Tax Code, the use of HOT revenue is limited to expenditures that meet the following two-part test:
Expenditure Categories. See Texas Tax Code §§ 351.101(a) and 351.110.
Since the purpose of the HOT grant is to attract visitors to Buda for overnight stays in Buda hotels, the funds will not be awarded for tourism-related events or activities that occur during times of peak hotel occupancy. All date restrictions will be identified prior to the fiscal year in which HOT grant funds are being awarded and are listed below:
Application packets, along with any required supporting documents, must be fully completed and submitted to the City of Buda Department of Destination Services prior to the tourism-related event/activity. Applications submitted after the due date will not be accepted or considered for funding.
Applications are submitted online through the online portal located at www.discoverbuda.com/grants in person at the Welcome Center located at 303 Main Street, Buda, TX 78610.
1. Applicants who qualify to receive HOT grant funds will be awarded a set amount of funding per room night based on the average daily room rate for Buda hotels. The average daily room rate is established and set at the beginning of the fiscal year by the Buda City Council.
For example, if an event has historically obtained 50 room nights as a direct result of their event, then the funding would equate to $120 multiplied by 50 room nights for a total of $6,000 in HOT grant funding.
Disclaimer: Hotel Occupancy Tax Reimbursement Grants are not guaranteed. All HOT grant applications must be reviewed for completeness and eligibility by city staff and allocation of funds is awarded at the discretion of Buda City Council.
It is the responsibility of the event organization/representative to report the number of non-local quests (meaning out of a 50-mile radius of Buda) and number of room night stayed in Buda's lodging properties that resulted from the event. (Please note that room nights generated in surrounding areas -outside of the Buda city limits - do not fulfill the requirments of the state law and will not be credited to your event.) Post-event documentation must be submitted no later than 60 days following the event/expenditure and should be submitted to the Department of Destination Services through the online portal located at www.discoverbudatx.com/grants. This grant is a reimbursement grant. To receive funds, you must submit the following:
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