The Hotel/Motel tax is assessed against the occupants of rented rooms in hotels, motels, and bed and breakfasts. Both the city and the state collect taxes from the rental of these rooms. The state rate is 6% and the city rate is 9% for a combined hotel/motel tax rate of 15%. A hotel’s owner, operator, or manager must collect hotel taxes from their guests and remit these taxes to both the local municipality as well as to the state. Tax revenue from the city hotel occupancy tax may be used only to promote tourism and the convention and the hotel industry. Cities also have the option to use this tax for the encouragement, promotion, improvement of the arts and the City of Wichita Falls uses a portion of these taxes to accomplish these goals. Payment is due on the 20th of each month following the previous month's reporting.