HOT Grant

Local Hotel Occupancy Tax (HOT) Use Guidelines & Reimbursement Grant Application

The City of Georgetown collects a Local Hotel Occupancy Tax (HOT) from hotels, motels and bed & breakfasts. The Office of Attorney General provides a set of rules that state how the revenue from the HOT may be used.

According to the Handbook on Economic Development Laws for Texas Cities, the use of HOT revenue is limited to expenditures that meet the following two-part test:

First, every expenditure must directly enhance and promote tourism and the convention and hotel industry. In other words, the expenditure must be likely to attract visitors from outside Georgetown into the city or its vicinity. If the expenditure is not reasonably likely to accomplish this result, it will not be funded by HOT revenues

Second, expenditures must clearly fit into one of six statutory categories shown below.

Expenditure Categories

  1. Funding the establishment, improvement or maintenance of a convention center or visitor information center.
  2. Paying the administrative costs for facilitating convention registration.
  3. Paying for tourism-related advertising and promotion of the city or its vicinity.
  4. Funding programs that enhance the arts.
  5. Funding historical restoration or preservation programs.
  6. Sporting events which majority of participants are tourists in cities located in a county with a population of a million or less

The Application Process

The Convention & Visitors Bureau (CVB) Board of the City of Georgetown accepts applications from organizations and businesses wishing to receive financial support through a reimbursement grant from the Local Hotel Occupancy Tax (HOT) revenue collected.

  1. To be considered for a HOT reimbursement grant, applicants must complete the attached form, including the required attachments; deliver them to the Tourism Director at least 90 days prior to the event or expenditure deadline, and present the application to the CVB Board at the monthly board meeting before any expenditures are made.
  2. The Tourism Director will review the application for compliance and completeness and add it the agenda of the next regularly scheduled CVB Board meeting. The contact name on the application will be expected to attend the CVB Board meeting, present the application to the board and if approved, follow through with the approved expenditure and grant reimbursement process.
  3. Requests that are approved by the CVB Board will be forwarded to the City Council. The City Council will make the final decision on the HOT grant request. The Tourism Director will notify the applicant within a week of the decision.

Rules Governing your Application

  1. The applicant must present reasonable evidence that the expenditure or event will increase overnight stays in Georgetown that are consistent with the level of HOT revenues requested. Example: the event is multi-day, 400 of the participants will travel more than 100 miles and 125 participants will stay in Georgetown lodging.
  2. For any applicant applying for HOT funds to advertise an event, the Georgetown CVB Board recommends these funds focus on targeting visitors outside a 100-mile radius of Georgetown. (see map)
  3. The applicant must ensure that all Georgetown hotels, motels and B&Bs and their current contact phone number, email and/or website are listed on any information you provide to registrant, vendor/event attendees, including event websites. Also all Georgetown hoteliers must be made aware of the event, have access to mailing lists, and have sufficient time to participate in the bidding process for both primary bookings and overflow. 4. If the request is for cooperative advertising support, the Tourism Director must approve the final advertising copy for appropriate representation of the City of Georgetown and local lodging one (1) week before the ad or publication’s print deadline. 5. Any promotional materials (brochures, website, advertisements, etc.) using HOT funds are required to include the appropriate Georgetown brand with the visitgeorgetown.com website below the brand. Also, any event sponsor signage is required to include the appropriate Georgetown brand. (Contact the City Public Information Office, 512/930-3690 for the correct version of the brand to use for each promotional item.) 6.After the application project is complete, the contact name on the application or a designated representative will be expected to attend the next monthly CVB Board meeting to present a follow up report on items such as visitor attendance data from event surveys and number of visitor overnight stays due to the event/expenditure. (See separate HOT Grant Follow-up Report form) Any future consideration of funding from the CVB is dependent on the organization providing a report to the board on the use and outcomes from prior funding by the CVB.

The Reimbursement Process

  1. After the application has been approved by the CVB Board and the City Council, the application expenditure items that were approved to be used for HOT revenues need to be paid for in full. Proof of payment of each item should then be submitted to the Tourism Director before a single reimbursement check will be issued. Note: Timing of reimbursement is subject to actual monthly revenue generated by hotels, motels and B&Bs, so it may not be immediate.

Local Hotel Occupancy Tax (HOT) Use Guidelines Reimbursement Grant Application Timeline

Reimbursement Grant Application Timeline

  1. (> 90 days before the event) Organization initiates planning for a local project or event.
  2. (> 90 days) Organization consults with Tourism Director to understand the actions required to qualify for a HOT reimbursement grant. Actions normally include the: a. Delivery of overnight visitors ‘tourist’ b. An open bidding process for housing c. Promotion of Georgetown that is consistent with current ad campaigns and websites.
  3. (- 90 days) Applicant completes the ‘HOT Reimbursement Grant Application’ and delivers it with attachments to the Tourism Director.
  4. (- 90 days) Tourism Director reviews the application for compliance and completeness and places an action item on the next board meeting agenda.
  5. (CVB Board meeting) The Applicant presents the application to the CVB Board and answers any questions for discussion and action.
  6. (City Council Meeting) If approved by the CVB Board the Tourism Director will forward the application to the City Secretary for disposition at the next City Council meeting. If approved by the City Council, the Tourism Director notifies the applicant via letter that spells out the reimbursement process of the grant. If not approved, the applicant and City Manager are notified.
  7. When the project is complete and receipts for approved expenditures are submitted, the HOT revenue will be distributed to the Organization/Applicant as agreed if all conditions of the original reimbursement grant are satisfactorily completed.

Related Documents
HOT Funds Reimbursement Grant Application :: 264.604Kb

Print This Page Print This Page

Comments on this entry are closed.