HOT Tax Sponsorships

APPLICATION DEADLINES 

• June 6 – for events held before October 1, 2025
• June 30 – for events held October 1, 2025 – September 30, 2026

VISIT BAY CITY HOT TAX SPONSORSHIP HOTEL OCCUPANCY TAX USE GUIDELINES

State Law: By law of the State of Texas, the City of Bay City, Texas, collects a Hotel Occupancy Tax (HOT) from hotels, motels, and bed & breakfasts and inns. Under state law, the revenue from the HOT may be used only to directly promote tourism and the convention and hotel industry. Chapter 351 of the Tax Code states that the use of HOT funds is limited to:

• Convention Centers and Visitor Information Centers
• Registration of Convention Delegates
• Advertising, Solicitations and Promotions that Directly Promote Tourism and the Hotel and Convention Industry
• Promotions of the Arts that Directly Promote Tourism and the Hotel and Convention Industry
• Historical Restoration and Preservation Activities that Directly Promote Tourism and the Hotel and Convention Industry
• Sporting Event Expenses that Substantially Increase Economic Activity at Hotels

City Policy: Visit Bay City accepts applications from groups and businesses whose program fits into one or more of the above categories. All requests for funds should be submitted in writing accompanied by the official application 90 days in advance before the funds are needed. Invoices and proof of receipts must be turned in within 90 days after the event has taken place. Anything that exceeds the 90 day deadline will not be paid. The application will be reviewed by the Bay City Tourism Council at the earliest possible regularly scheduled meeting. The applicant may be asked to be present at the meeting to answer any questions regarding the application. Applicants will be notified one week prior to the meeting of the time and place for the review.

Eligibility and Priority for Hotel Tax Funds: Priority will be given to those events and entities based on their ability to generate overnight visitors to Bay City / Matagorda County and that fall into at least one of the five eligible categories. The amount that you are requesting should not exceed more than 25 percent of the gross amount of hotel night revenue that you are predicting that will be created or sustained by your event. If an event will not generate any meaningful hotel night activity, it is not eligible for receipt of hotel occupancy tax funds. Events can prove this potential to generate overnight visitors by:

• historic information on the number of room nights used during previous years of the same events;
• current information on the size of a room block that has been reserved at area hotels to accommodate anticipated overnight guests attending the event requesting hotel tax funds;
• historical information on the number of guests at hotel or other lodging facilities that attended the funded event; and/or
• examples of marketing of the programs and activities that are likely to generate encourage overnight visitors to local lodging properties.

Use of Local Vendors: Visit Bay City encourages all event organizers to patronize Bay City and Matagorda County businesses for food, supplies, materials, printing, etc.

Use of Revenues from Event: A portion of the revenues from any event and/or project receiving any type of funding assistance from the HOT funds should be channeled back into the future costs of operating that same event or the continued operation of the project. No other outside event(s), project, charity, etc., sponsored by the host organization may profit from Visit Bay City funding of a particular event.

Use of Logo: Visit Bay City logo must be included in any and all advertising for the event. The logo may not be changed or altered in any way. Any sponsorship package benefits will be given directly to the Visit Bay City to the closest sponsorship level.

Supplemental Information Required With Application: Along with the application, please submit the following:

• W-9 Form
• 501 (c) status Form
• Schedule of Activities or Events Relating to the Funded Project

Submit to: 
Visit Bay City Matagorda County
1112 7th Street, Bay City, TX 77414
Attn: Samantha Denbow 
sdenbow@cityofbaycity.org