In Galveston, Texas, short-term rentals (STRs) are legally permitted and regulated primarily by the Galveston Park Board of Trustees under Ordinance 15-012. This ordinance requires property owners to register their rentals and collect a 9% Hotel Occupancy Tax (HOT). STRs, which include vacation homes, condos, and certain other residential properties, thrive due to the area's appeal to tourists, particularly families seeking beach access, historical attractions, and a vibrant local culture. The local market is predominantly tourist-driven, particularly during peak seasons, although some properties cater to business travelers due to the island's events and conventions. The registration fee is $250, and properties must be renewed annually. Compliance is monitored strictly, with penalties for violations potentially resulting in fines up to $500. For more information about short-term rental regulations and registration, visit the official sites of the City of Galveston here and the Galveston Park Board here.