Municipal Hotel Occupancy Tax Statute

The Municipal Hotel Occupancy Tax Statute, Texas Tax Code § 351.101, provides that Municipal Hotel Occupancy Tax revenues may be used to fund nine eligible categories of expenditures that have been found to promote tourism and the hotel and convention industries, including expenditures that promote specific art forms. Section § 351.101(a)(4), added by the Legislature in 1977, provides in applicable part: “Revenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry, and that use is limited to the following: 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 recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms.”

Funding Period and Availability

The City of Bryan’s Arts and Culture Development Grant funding period is for programs or projects for the fiscal year 2023-2024 (Oct. 1, 2023 – Sept. 30, 2024). A limited amount of funding is available and grants will be awarded based on eligibility and impact to Bryan.

Application Due Date

Applications must be submitted by Jan. 15, 2024 through the online application portal. Late or incomplete applications will not be accepted. Pending the number of applications and any remaining funds available for fiscal year 2023-2024, a second round of applications may be accepted in March 2024. For programs or projects falling within fiscal year 2024-2025 (Oct. 1, 2024 – Sept. 30, 2025), applications are anticipated to open in July 2024.

Review Process

• The City of Bryan will collect all submitted applications and then after the deadline provide them to the Grant Review Committee for consideration.
• The Committee will recommend program or project funding for each application to the City of Bryan.
• Bryan’s City Manager will make the final approval of funding for all grants.
• Once approved, a contract will be issued to the applicant specifying the grant amount and reporting guidelines.
• Funding will be distributed to applicants within 30 days of execution of a contract with the City of Bryan.

Categories Not Eligible

Examples include but are not limited to the following:

• Programs and projects that do not have an artistic or cultural focus
• Ongoing monthly/seasonal/annual operations costs including, but not limited to, staff salaries, rent, utilities, office supplies, etc.
• Costs of food and drink for receptions
• Scholarships, benefits, or fundraising events
• Cash prizes or items purchased for resale, use as prizes or gifts, or awards
• Transportation to exhibits/field trips
• Building space, real property, or supplies and equipment that is owned by, or could be used by, the applicant
• Furniture, Fixtures, and Equipment (FF&E) or Capital expenditures (excluding permanent public art)
• Political activity – including any activity supporting the election or defeat of any candidate for public office; or to influence the passage, defeat or final content of legislation.
• Deficit or debt reduction efforts
• Funding for litigation or litigation related activities

Reporting Requirements

Applicants receiving funding will be required to submit a report within 60 days after the completion of the project. Reporting requirements will be mutually agreed upon between the applicant and the City of Bryan. Failure to submit the report may result in forfeiture of remaining funds allocated for the project and eligibility for future Bryan Arts and Culture Development funding.

Changes and Refunds

Grantees must notify the City of Bryan, in writing, at any point if the program or project is changed from the way in which it was described in the grant application. This includes, but is not limited to, substitutions in personnel, change of project dates, change in number of performances, change of event location, change of the event from in-person to virtual, and cancellation. Changes in the project are subject to review by the City of Bryan and may result in a revision or revocation of the grant award. If the grantee fails to inform the City of Bryan of changes before the project dates, the City of Bryan reserves the right to withhold payment(s) or require a refund.