Purpose
The purpose of the Hotel Occupancy Tax Administration Policy and Procedure is to establish a neutral, transparent, and consistent process for the administration of Hotel Occupancy Tax (HOT) funds.
Scope
This policy and procedure applies to all (organizations, hotels, and individuals) seeking HOT funds for events or programs within the City of Duncanville.
Objectives
Ensure all expenditures comply with the Texas "Two-Step" Test: (1) putting "Heads in Beds" by attracting overnight tourists and (2) fitting into one of the nine statutorily authorized categories.
- Maintain fiscal responsibility and cross-departmental accountability.
- Provide a predictable timeline for applicants aligned with the city's budget cycles.
Resources : Supporting Documents and Templates
- Appendix A: HOT Fund Application Form (Online Portal).
- Appendix B: Two-Step Compliance Worksheet (Heads in Beds & 9 Categories).
- Appendix C: Post-Event Reimbursement Form and Checklist.
- Appendix D: Form Letter Templates (Submission Receipt, Incomplete Notice, Funding Recommendation).
Application Submission Process and Timeline
- The city implements clearly defined windows to prevent rolling submissions and support auditability.
- Submission Window: 1 March – 15 April for the following Fiscal Year. Applications received after 4:00 pm CST on April 15, will not be considered for the current review period. o Example for a project occurring in the 2027 Fiscal Year, your application must be submitted by April 15, 2026.
- Submission Method: Applications and supporting documents must be submitted via email to [email protected]. Applications are no longer accepted as a drop off at City Hall.
Required Supporting Documents (The Application Packet):
- Application Completed in its entirety
- A new application must be submitted every year
- Applicants using previous years applications will be automatically denied review
- Supporting Historical Documentation
- Marketing plan targeted at attracting overnight guests.
Application Review
- Initial Review (15 April – 30 April): Applications will be reviewed for completeness and Two-Step Compliance.
- Notification of Completeness and Next Steps: Applicants are notified within 7–10 business days of submission review.
- Applicants with complete and compliant submission will be scheduled for an in-person or virtual interview and review of the funding recommendation. During this interview applicants will receive a date for presentation to City Council.
- Incomplete Submissions: Applicants notified of incomplete submission will have 10 business days to resubmit missing info.
Funding Recommendation & Interviews (1 May – 31 May)
- A final funding recommendation will be sent to the applicant and published for the respective City Council Meeting.
- All applicants will receive a calendar invite for their respective presentation date. Be advised City Council Meetings are first and third Tuesdays of every month, unless otherwise posted. October and December are the exception with one (1) meeting.
Funding Requests that DO NOT Meet the Two Step Requirement
- Payroll and Daily Operational Costs for the business location
- Business Insurance Payments
- Trophies and other competition or participation awards
- Scholarships
City Council Presentation & Approval
- Agenda Item Creation: Funding recommendations are incorporated into budget proposals.
- Presentation: A formal presentation is made to the City Council, including an Applicant Q&A session.
- Applicants must submit a 1-2 slide presentation of their business, organization or event with brief details about the business/organization or event.
- Who – the organization identity, name location, years in business or history of hosting such an event
- What you do, or what the event provides by way of community and/or economic impact Final Decision: Council issues an Approval or Denial. Approved items are documented with a Signed Resolution and Funding Agreement. Funding agreements will be signed by the applicant upon approval.
Reimbursement Process
The City of Duncanville operates on a reimbursement basis to ensure funds are spent as approved.
Submission Deadline: The Post-Event Reimbursement Packet must be submitted within 30 days of the event's conclusion.
Required Reimbursement Documentation:
- Invoice on company letterhead (must include your organization name, address and phone number o Post-Event Reimbursement Form and Checklist.
- Signed receipts and invoices reconciled with the original approval. o Proof of impact (e.g., hotel night reports or attendee data).
Payment Timeline: Reimbursement Submissions are reviewed within 5-7 business days. Applicants with approved submission will receive a form letter email. Payments will be issued within 30 days.