Hotel Occupancy Tax Grant

The Texas Tax Code authorizes the City of Allen to impose a local hotel occupancy tax which may be used to fund certain projects or programs which promote and enhance tourism and the convention and hotel industry. This fund is available to qualifying nonprofits or government entities within Allen as a Hotel Occupancy Tax Grant.

NOTE: Application period closed for Fiscal Year 2020-2021. Check back for updates.

Authorized Expenditures

Every expenditure of local hotel occupancy tax must satisfy a two-part test.

First, the expenditure must directly enhance and promote tourism and the convention and hotel industry. If the expenditure is not likely to attract visitors from outside the City into the City or its vicinity, it should not be funded by hotel occupancy tax. The second requirement is that the expenditure must be for one or more of the following statutorily authorized categories.

  1. The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities or visitor information centers, or both;
  2. The furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants;
  3. Advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity;
  4. The encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recordings, and other arts related to the presentation, performance, execution, and exhibition of these major art forms;
  5. Historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums.

If the City cannot fit an expenditure within one of the above categories and make a finding that the expenditure will directly promote tourism AND the convention and hotel industry, the hotel occupancy tax revenues may not be used.

Grant Eligibility

  • Applicants must be active non-profit corporations holding letters of determination from the IRS showing 501(c)(3) status or be entities of government located within the city limits of Allen.
  • Projects of the applicant should serve residents of or visitors to Allen and should be open and accessible to the public.
  • Projects of the applicant must be completed in accordance with the grant.
  • Applicants are encouraged to find financial support for projects from more than one source.

Application Procedures and Process

NOTE: Application period closed for Fiscal Year 2020-2021

  • Grant applications are considered on an annual basis. Applications for Fiscal Year 2020-2021 accepted through 5 p.m. May 1, 2020. Applications not accepted after this time, no exceptions.
  • Applicants are responsible for timely submission of complete applications with all required attachments. Incomplete applications may not be considered.
  • Submit applications to finance@cityofallen.org.
  • Organizations applying for the grant must submit a resolution or other form of proof that the organization has authorized the grant application and that the individual making the application is so authorized.
  • The City Hotel Tax Committee is responsible for reviewing the applications and making recommendations to the City Manager relative to expenditures of hotel occupancy tax and reserves the right to reject any and all applications and to waive any application formalities.
  • The City Manager recommends a City Budget, which includes the Hotel Tax Fund, to the Allen City Council. The City Council may disapprove any City Manager recommendation and/or award grant funds less than the amount requested.
  • Funding is subject to the availability of hotel occupancy tax revenue.
  • Grant funds must be used only for the approved program or project and must be returned to the City if not used.
  • Grant recipients will be required to enter into a contract with the City governing the use of the funds.