City Council approves filing suit against two local motels

By: Jose G. Landa, Copyright 2015, Eagle Pass Business Journal, Inc.

The Eagle Pass City Council approved to authorize City Attorney Langley & Banack to file lawsuits against the Holly Inn Motel and the Microtel Inn for non-payment of their Hotel Occupancy Room Taxes to the City of Eagle Pass at their Tuesday, June 2, 2015, regular meeting.

Under Agenda Item No.19 Executive Session pursuant to Section 551.071, Chapter 551, Texas Government Code – Consultation with legal counsel regarding possible litigation with Microtel and Holly Inn regarding hotel occupancy taxes, the City Council consulted with City Attorney Langley & Banack regarding the legal options available to the City to collect outstanding delinquent Hotel Occupancy Room Taxes owed by the two local hotels or motels.

The City of Eagle Pass charges a Hotel Room Occupancy Tax to every hotel and motel within the city limits of 6% of the total cost of each room’s rental per day. The local hotels and motels charge this tax on every customer and forwards this tax to the City of Eagle Pass.

The Holly Inn Motel and the Microtel Inn have fallen delinquent in their Hotel Room Occupancy Tax payable to the City of Eagle Pass. The exact amounts owed by each were not discussed publicly in open session, but the amounts owed are reported to be considerable.

After coming out in Open Session, Mayor Ramsey English Cantu asked if there was any motion on the delinquent Hotel Occupancy Room Tax issue.

Councilman Luis E. Sifuentes motioned to authorize legal counsel Heriberto Morales of Langley and Banack to file suit against both hotel businesses for non-payment of their Hotel Occupancy Room Taxes owed.

“I motion for legal counsel to file suit against Microtel and Holly Inn for the hotel occupancy taxes owed,” motioned Sifuentes. Mayor Pro-Tem Rudy Villapando seconded Sifuentes’ motion to file suit.

The City Council unanimously approved the motion to file suit against the Holly Inn Motel and the Microtel Inn for non-payment of their delinquent Hotel Occupancy Room Taxes.