If your group is tax exempt from paying hotel/lodge tax Please understand that the 13% lodge tax that we are required to collect includes 7% City and 6% State tax. You will need to include documentation that specifically states that you are exempt from Hotel Occupancy/lodge tax. Documentation must be included from both taxing entities. Example, if you provide us with the state lodge tax exemption only, then we are still required to collect the city tax. If you fail to provide all needed documentation we are required to collect hotel/lodge tax along with the rent. This is NOT our policy, this is detailed criteria directly from the state Comptroller of Public Accounts. Documentation must be provided along with your signed guest agreement. Documentation from both taxing entities are State of Texas and the City of Seguin. Although the house is not located in Seguin, it is inside of their ETJ, therefore they require 7% lodge tax be collected.