30 hotels in El Paso haven’t paid their occupancy tax

EL PASO, Texas (KVIA)-- Every year, the City of El Paso contracts an independent auditor to conduct audits into 20 hotels. A recent report released in July found that 20 hotels owe the city in total $1,417,289.09 in Hotel Occupancy taxes. An additional 10 hotels also owe the city about $1.1 million, according to Edmundo Calderon, former Chief Internal Auditor for the City of El Paso.

The period under this report was from January 1, 2021 to December 31, 2024.

Former Chief Internal Auditor for the city of El Paso says the main reason for the underpayment is the changing of ownership.

"A new owner comes in, buys a hotel, then, they start the operating, they start operating a hotel, but then they realize they didn't get the records from the previous owner. And that's usually what causes the problems that we see," said Edmundo Calderon.

Hotel Occupancy Tax is the tax that you pay when you check out of a hotel. Then the hotel pays the city a portion of that tax. Then that money goes to tourism.

"And for the maintenance of the convention center that we we use it to promote the convention center for conventions when they come into town and for other, tours, events that happen in the city of El Paso," said Calderon.

District 2 City Rep. Josh Acevedo said most of the times taxes owed are collected.

"I think the process that's been in place with doing these audits has worked, and we are collecting most of it," said Acevedo.

The list of the 20 hotels named in the July report are as follows:

• Aloft El Paso- $16, 206.85
• Best Western Airport- $34,006.24
• Candlewood Suites El Paso- $3,201.12
• Comfort Suites (1940)- $16,600.66
• Comfort Suites El Paso West- $257,507.78
• Courtyard Downtown- Convention Center- $28,284.39
• Courtyard El Paso- Airport- $40, 710.63
• Desert Inn/ Days Inn- $490.52
• Extended Stay America- Airport- $62, 044.03
• Extended Stay America- West- $59,588.61
• Hampton Inn & Suites- $7,826.38
• Holiday Inn El Paso West- Sunland Park- $701,305.79
• Holiday Inn Express & Suite- $5, 641.84
• Holiday Inn Express- $47,646.17
• Home2Suites- $60,215.33
• Motel 6- West- $4,626.03
• Palace Inn- $456.37
• Springhill Suites- $21, 644.12
• TownePlace Suites- $11, 772.59
• Tru by Hilton- $37, 513.84

ABC-7 did file an open records request last week for the report that shows 10 additional hotels owe $1.1 million. We are waiting for that report and will keep you updated on air and online as we learn more.

Five hotels have requested a reaudit, those audits are pending, according to Calderon