Discover how Fort Worth partnered with Localgov to modernize hotel occupancy tax management—streamlining collections, boosting short-term rental compliance, and creating a fair, efficient system for the city’s lodging market.
Fort Worth is one of the fastest-growing cities in the nation, celebrated for its rich Western heritage and modern cultural attractions. From world-class museums to its iconic Stockyards, the city continues to draw visitors from around the globe. This thriving tourism economy means hotel occupancy taxes—often called HOT—are a vital revenue source for city services and amenities.
City leaders recognized that, to keep pace with Fort Worth’s rapid growth and dynamic lodging market, they needed a reliable, transparent, and efficient system for managing HOT compliance.
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For years, Fort Worth relied on a homegrown software system to administer its hotel occupancy taxes. But the tool was notoriously unreliable. “It messed up all the time,” recalls Jay Rutledge, Financial Services Manager and Assistant Treasurer. Generating reports was cumbersome, updates often broke the system entirely, and staff had to export data to spreadsheets to see who hadn’t paid—an enormous drain on resources.
Short-term rentals (STRs) were supposed to pay HOT just like hotels. In reality, compliance was almost entirely voluntary. Only about ten STR properties were even registered. “The hotels were frustrated,” says Rutledge. “They were competing with STRs that weren’t collecting or remitting taxes—it wasn’t a level playing field.”
Meanwhile, many hotels still paid by check or credit card, creating inefficiencies and added costs for the city. With only a two-person team handling HOT collections for roughly 200 hotels and an ever-growing STR market, Fort Worth needed a better way.
Texas cities pride themselves on local authority, so Fort Worth needed a partner that could fully respect its ordinances while delivering a modern, taxpayer-friendly system. After issuing an RFP, the city selected Localgov, powered by Azavar, for its proven track record and flexible, municipality-focused technology.
Localgov customized a comprehensive compliance and collections platform that automated:
“Our team is small, so we needed all the help we could get,” says Rutledge. “Localgov made our life much easier. They took over the onboarding process, met with hotel associations, and handled outreach to STRs. All we had to do was attend a few meetings.”
The transition from the city’s homegrown system was, in Rutledge’s words, “day and night.” Fort Worth now meets regularly with Localgov to review reports and improvements. “They’re always quick to make changes and continue enhancing the platform.”
Fort Worth achieved dramatic results in less than six months:
“Compliance has improved across the board,” Rutledge reports. “Hotels and STRs are now part of a fairer, more transparent system—and our costs are down.”
As Fort Worth grows, its lodging market will continue to evolve. By partnering with Azavar and Localgov, the city secured a future-ready solution that supports both revenue stability and a positive taxpayer experience.
“It’s worth it,” says Rutledge. “Localgov gave us the tools, service, and ongoing improvements we needed to modernize HOT collections. Our team can now focus on strategy instead of chasing down paperwork—and we saw these results in under six months.”
Ready to bring convenience and compliance to your community? Schedule a personalized demo with our team and see how Localgov can help your city recover revenue, boost taxpayer satisfaction, and stay ahead of growth.
With only a two-person team managing HOT collections across nearly 200 hotels, Fort Worth needed extra support. Localgov’s Concierge Customer Service team now handles the bulk of taxpayer questions and onboarding—allowing city staff to focus on strategy rather than daily troubleshooting.
After years of struggles with a homegrown system that broke under updates and made reporting nearly impossible, Fort Worth now benefits from a flexible platform that integrates smoothly with existing city systems, processes and continues to evolve through regular enhancements.
"Localgov made our life much easier. They customized the platform for our ordinances, handled outreach to hotels and short-term rentals, and continue to improve the system. For a small team like ours, that support is invaluable.”
Jay Rutledge
Financial Services Manager & Assistant Treasurer
The City of Fort Worth, Texas
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