HOT Funds or Hotel Occupancy Tax (as they're more properly referred to) are a tax revenue generated by hotel stays. The HOT was developed as a tool for the tourism and hotel industry and has strict guidelines on how it can be used.

Texas Tax Code Chapter 351 allows the City of Mineral Wells and Palo Pinto County to collect Hotel Occupancy Tax (HOT) from hotels, motels, bed & breakfasts and other lodging facilities. Under state law, the revenue from the HOT may be used only to directly promote tourism and the convention and hotel industry.  In Mineral Wells, the city and county have contracted with the Mineral Wells Area Chamber of Commerce and Visitor's Bureau (CVB) to fulfill the duties of a CVB.

Events conducted by your organization may qualify for a grant of HOT Funds if your event or events promote tourism and the convention and hotel industry. Each year, the Mineral Wells Area Chamber of Commerce approves an amount of HOT Funds to be allocated to outside organizations for this purpose.

There is a two-part test for every expenditure of local Hotel Occupancy Taxes.

Criteria # 1 Every expenditure must DIRECTLY enhance and promote tourism AND the convention and hotel industry.

Criteria # 2 Every expenditure MUST clearly fit into one of nine statutorily provided categories.

The categories for which we most often award grants are:

• • Paying for tourism related advertising and promotion of Mineral Wells and/or Palo Pinto County.

• • Funding programs and/or events to promote 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 picture, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms.

• • Funding historical restoration and preservation projects or activities or advertising and conducting solicitation and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums.