The city audits about 25 to 30 hotels each year on a rotating three-year cycle. <\/p>\n
Cortinas said that means hotels are typically reviewed every three years because the city does not have the resources to audit every hotel annually.<\/p>\n
\u201cWhen they do the audits, they’re looking at one, is the hotel collecting appropriately, are they remitting on time?\u201d Cortinas said.<\/p>\n
Cortinas said the audits have helped the city recover millions of dollars over the years.<\/p>\n
\u201cI think we’re over four million dollars in hotel occupancy tax that hadn’t been provided on time,\u201d he said.<\/p>\n
![\"La](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/05\/1779249868_436_c5ea34c5-7ebd-4741-9f1a-d1764064b8b2-pkgPreviewItem_HOTAudit.transfer_frame_3094.jpeg\"\/)
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La Quinta Inn, El Paso East Lomaland. (Credit: KFOX14\/CBS4)<\/p>\n
Cortinas said some hotels may incorrectly report taxes because they do not fully understand the reporting requirements or timelines.<\/p>\n
\u201cSometimes it’s an educational thing,\u201d Cortinas said. \u201cSometimes it’s the hotel is not doing well. And so they’re just not remitting their hotel occupancy tax.\u201d<\/p>\n
\u201cThey may be reporting incorrectly because they don’t understand the rule or the reporting timelines,\u201d Cortinas said. \u201cAnd so it helps them ensure that they’re remitting the hotel occupancy tax appropriately.\u201d<\/p>\n
The city\u2019s Office of the Comptroller oversees collections and follows up with hotels identified in the audit. <\/p>\n
Cortinas said hotels are given opportunities to provide documentation or appeal findings if they believe the amounts are incorrect.<\/p>\n
The city said hotels were notified of the findings on April 23rd, two days after the audit was completed. <\/p>\n
KFOX14\/CBS4 asked whether any hotels had responded or paid since then, Cortinas responded, \u201cI don’t know. So we just got the report from the internal audit as well. We actually just, earlier today, I just got the report from them. I had not seen it up until that point. So yes, I can’t answer that question right now, but I’m sure that they’re gonna reach out.”<\/p>\n
The findings follow a separate audit <\/a>KFOX14\/CBS4 reported on last year that found more than $1 million in unpaid hotel occupancy taxes across 10 El Paso hotels.<\/p>\n Internal Audit on Hotel Occupancy Taxes. (Credit: KFOX14\/CBS4)<\/p>\n KFOX14\/CBS4 also asked what the city is doing to prevent taxes from going unpaid, Cortinas said enforcement options can eventually escalate to lawsuits or even potential shutdowns.<\/p>\n \u201cI think there’s only so much that we can do to force a hotel to pay other than actually closing them down,\u201d Cortinas said.<\/p>\n He said one hotel previously came close to being shut down after the city obtained a court order over unpaid taxes.<\/p>\n \u201cWe were at the point where we actually had a hotel that we had actually got a court order to actually close down that hotel from the court, because the court identified that yes, you do owe this amount, we had not heard or had not received a payment from the hotel owner,\u201d Cortinas said. \u201cAnd so I said, you know what? Let’s give them one more chance. We already have the court order, we’ll give them one more chance. If we don’t receive payment by the end of the day, we’re gonna follow through and we’re gonna shut the hotel down.\u201d<\/p>\n Cortinas said the collection process can take years because of court proceedings and efforts to contact the correct hotel owners, especially if properties have changed ownership.<\/p>\n Cortinas also adds that penalties and interest are also added when hotel occupancy taxes are not paid on time.<\/p>\n According to Cortinas, the money from hotel occupancy taxes is restricted by the city charter and is primarily used for tourism-related expenses, marketing and city-owned facilities.<\/p>\n Cortinas said hotel occupancy tax revenue helps fund tourism, marketing and city facilities, including the Convention Center and the Abraham Chavez Theatre.<\/p>\n He added that part of the revenue approved by voters in 2012 goes toward paying debt related to the Southwest University Ballpark.<\/p>\n When asked what that tourism funding specifically supports, he pointed to promotion tied to major events and conferences in El Paso.<\/p>\n \u201cThe recent BTS concert was a great opportunity for us to do more promotion. The Sun Bowl game that we have every year,\u201d he said. \u201cSo that again, getting the word out, marketing, promoting the city to get people to come and visit.\u201d<\/p>\n The president of the El Paso Hotel Lodging Association, Terra Maguregui, also provided the following statement following the release of the audit:<\/p>\n As President of the El Paso Hotel Lodging Association, I cannot speak on behalf of the individual hotels identified in the audit, as each property is independently operated and responsible for its own tax reporting and compliance. What I can say is that Hotel Occupancy Tax compliance is important to our industry and to the continued support of tourism and economic development in El Paso. Audits are part of the normal accountability process, and we encourage any questions or findings to be addressed directly between the City and the individual properties involved.<\/p>\n![\"Internal](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/05\/1779249868_827_4190a415-2d59-4646-954e-bc5ccacbc6e7-pkgPreviewItem_HOTAudit.transfer_frame_2662.jpeg\"\/)
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