EL PASO, TEXAS (KFOX14/CBS4) — El Paso city leaders are expected to get an update on Tuesday on a hotel tax audit that initially showed more than $1 million in unpaid taxes.
As KFOX14/CBS4 previously reported, a city audit completed in April reviewed 20 hotels and found they may have underpaid hotel occupancy taxes, the tax guests pay when staying in a hotel.
The city’s audit department reviewed 20 hotels and found 19 had deficiencies, with an initial total of about $1.13 million in hotel occupancy taxes going uncollected across El Paso hotels.
The audit also found problems including underreported revenue, invalid tax exemptions and unreported fees.
According to a presentation expected to be discussed during Tuesday’s city council meeting, seven hotels challenged those findings and asked the city to review their numbers again.
After that review, the amount was reduced by more than $531,000, according to the presentation. Additionally, the revised total is about $600,000 and does not include any penalties or interest, the presentation states.
FULL PRESENTATION:
09-10-2026 FOAC Item 7 – HOT Review (Round 10) UpdatePDF previewPreview PDF
Previously, speaking to KFOX14/CBS4, City Chief Financial Officer and Deputy City Manager Robert Cortinas said some hotels may incorrectly report taxes because they do not fully understand the reporting requirements or timelines.
“Sometimes it’s an educational thing,” Cortinas said. “Sometimes it’s the hotel is not doing well. And so they’re just not remitting their hotel occupancy tax. They may be reporting incorrectly because they don’t understand the rule or the reporting timelines. And so it helps them ensure that they’re remitting the hotel occupancy tax appropriately.”
While the city’s Office of the Comptroller oversees collections and follows up with hotels identified in the audit, Cortinas previously said hotels are given opportunities to provide documentation or appeal findings if they believe the amounts are incorrect.
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