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State Regulation

In this guide, we explore the world of short-term rentals in Texas, starting with the state's broad definition under 85 (R) H.B. 2551. This encompasses various residential properties, including single-family homes, condos, cooperatives, and time-shares, rented for less than 30 days. However, the general statewide definition allows local governments significant flexibility to adapt STR regulations to their specific needs. The guide aims to provide hosts with a comprehensive understanding of Texas' regulatory landscape, highlighting the importance of aligning with both state and local rules in the short-term rental business.

Is there a statewide definition of STR?

Generally speaking, within the State of Texas, a short-term rental is defined as the renting out of a residential dwelling unit or an accessory building on a temporary basis for a period of less than 30 consecutive days.

statewide registration requirement
Statewide Registration Requirement

In Texas, the statewide registration requirements for short-term rentals (STRs) vary significantly by city, reflecting the diversity of approaches taken by different municipalities. Here are examples from a few cities:

  1. Dallas: For operating an STR in Dallas, property owners need to register their property through the city’s online system, MUNIRevs. This registration aids in streamlining the tax-paying process and allows owners to calculate and pay the Hotel Occupancy Tax (HOT) set at 7% of the nightly STR rate.
  2. Fort Worth: In Fort Worth, the city allows STRs to operate only in specific zones like mixed-use, commercial, and industrial districts. The city is considering developing an external STR registration platform where owners can pay fees, provide essential documents, and confirm compliance with local safety standards. This registration platform is also intended to enforce strict requirements such as occupancy limits and adherence to local noise and parking ordinances.
  3. San Antonio: Operating an STR within San Antonio requires an active permit on file with the city. The permit application process includes providing contact information, property floor plans, and proof of ownership. The STR permit in San Antonio is valid for three years and requires a $100 application fee. Renewal of the permit also requires a fee and documentation of any changes to the property, as well as certification of HOT payments.
  4. Galveston: Galveston requires all operating STRs to register with the city. The yearly registration must be submitted by December 31 and costs $50. STR owners in Galveston are expected to maintain their properties in line with local laws and community well-being. This includes knowing about the 9% HOT rate and implementing guest-friendly practices.
What is the length of stay of STR in the state?

According to law, a short-term rental (STR) is a temporary occupancy of 30 days or fewer.

Statewide Tax Requirement

In Texas, the statewide tax requirement for short-term rental properties includes the collection and remittance of a 6 percent state hotel occupancy tax.

In addition to the state tax, local jurisdictions in Texas may also impose their own hotel occupancy taxes. Hosts are encouraged to check the rules that apply in their jurisdiction.

Access the latest compliance requirement for your local jurisdictions below

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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