Hotel Occupancy Tax

Every person or entity that owns, operates, manages, or controls any hotel or collects payment for occupancy in any hotel in the Town of Prosper must collect a 7% Hotel Occupancy Tax from their guests, as established under Ordinance 12-34 Article No. 11.04. This tax applies to all businesses offering sleeping accommodations in Prosper, and the collected revenue will be used for tourism promotion, public facilities, and general town advertising.

Ordinance Overview

Tax Rate: 7% of the cost of occupancy in any room.
Exemptions: Certain organizations, such as government agencies or military personnel on official business, may be exempt from the tax under the Texas Tax Code.
Reporting Requirements: Reporting will now be required monthly. Every hotel must file a monthly tax report, even if no tax is due for the period. The due date for submitting reports is undergoing an amendment, so please check for the updated deadline.

Required Documents for Tax Remittance

To ensure compliance with the Town of Prosper’s hotel occupancy tax ordinance, businesses must submit the following forms outside of the online system:

Hotel Tax Exemption Form: For guests or entities eligible for tax exemption (e.g., government or military exemptions).
Tax Remittance Account Application: Required to create a tax remittance account if you are operating a hotel or motel in Prosper.
Monthly Tax Remittance Report Template: To report tax collection and exemptions for each period.

How to Create a Citizen Self Service (CSS) Account

Navigate to the Prosper Self Service Portal: Town of Prosper Self Service Portal
Follow the step-by-step instructions to create an account.
Once your account is set up, use the portal to submit the necessary tax remittance reports and forms.

Create Your Account

Helpful Links

Download the Hotel Tax Exemption Form
Download the Tax Remittance Account Application
Access the Monthly Tax Remittance Report Template
Instructions for Completing the Town of Prosper, Texas Hotel Occupancy Tax Report