Here's why Austin, Lake Travis, Westlake hotel bills include a hefty tax

With summer now in full swing, many Central Texas landmarks will welcome visitors, who will also be frequenting many of the local restaurants, music venues and hotels.

According to a March Texas Hotel Performance Research report prepared for the Texas Tourism Office of the Governor, hotel room revenue year-over-year increased 1.1 percent statewide in 2016 to a new state record of $9.9 billion in revenue. Luxury and full-service hotels, which comprise 18 percent of the state’s hotel room inventory, were the two areas in which the income growth was highlighted in the report.

However, when area tourists check their lodging bills, they might notice a charge for a hotel occupancy tax.

For instance, an Austin hotel will tack on a 6 percent state tax, a 7 percent city tax and a 2 percent venue tax.

So how much hotel tax do visitors pay, what is the tax for and where does the money go?

This summer, Central Texas visitors who use area lodging will encounter hotel bills that vary in hotel occupancy tax charges, depending where they stay.

The state enacted a 6 percent hotel tax to fund projects intended to draw more visitors to Texas. Some cities also charge a local hotel tax of up to 7 percent of the room price, with larger municipalities allowing a tax of up to 9 percent of the lodging cost. A venue tax of up to 2 percent could also be added to one’s bill.