Houston Parks and Recreation and Community Economic Development Tax

​A 2 % tax is imposed on the gross proceeds​ of sales of restaurants and on the gross proceeds from room rentals of hotels and motels in the City of Houston.​ This levy is in addition to all other taxes now imposed. Effective September 1, 2016. Repeal date December 31, 2028.

“Hotel” or “motel” means any establishment engaged in the business of furnishing or providing rooms intended or designed for dwelling, lodging or sleeping purposes to transient guests, where the establishment consists of four (4) or more guest rooms. The term “hotel” or “motel” does not include any hospital, convalescent or nursing home or sanitarium, or any hotel-like facility operated by or in co​nnection with a hospital or medical clinic providing rooms exclusively for patients and their families.
“Restaurant” means all places where prepared food and beverages are sold for consumption on the premises. The term “restaurant” does not include any school, hospital, convalescent nursing home, or any restaurant-like facility operated by or in connection with a school, hospital, medical clinic, convalescent or nursing home providing food for students, patients, visitors or their families.​​​