STR Regulations (Chapter 11-2) — original pdf

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 WORKING DRAFT AND SUBJECT TO CHANGE – 1/24/2025 VERSION ORDINANCE NO. AN ORDINANCE AMENDING CITY CODE CHAPTER 11-2 RELATING TO HOTEL OCCUPANCY TAXES, SHORT-TERM RENTAL OPERATORS, AND SHORT-TERM RENTAL PLATFORMS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF AUSTIN: PART X. City Code Section 11-2-1 (Definitions) is amended to add new definitions for “Platform” and “Short-Term Rental” to read: (4) (5) PLATFORM means a person that facilitates booking of short-term rentals on behalf of a short-term rental operator. SHORT-TERM RENTAL means the rental of a housing unit or a portion of a housing unit for periods of less than 30 consecutive days. This term does not include an extension for less than 30 consecutive days of a previously existing rental agreement of 30 consecutive days or more or a rental between the parties to the sale of that housing unit. PART X. City Code Section 11-2-3 (Collection of Tax Generally) is amended to add a new Subsection (C) to read: § 11-2-3 COLLECTION OF TAX GENERALLY. (A) Except as provided in Subsection (C), a [A] person who owns, operates, manages, or controls a hotel or short-term rental or collects payment for the use or possession or for the right to the use or possession of a hotel room or short-term rental shall collect the tax levied by this chapter for the City. (B) A person who collects the tax shall deposit the tax proceeds into [in] a separate liability account and may not use the tax proceeds for any purpose other than payment to the City. (C) A platform who collects payment for the use or possession, or for the right to the use or possession, of a short-term rental shall collect the tax levied by this chapter for the City and on behalf of short-term rental operators who use the platform. PART X. City Code Section 11-2-4 (Quarterly Reports; Payments) is amended to amend Subsection (C) and to add new Subsections (F) and (G) to read: § 11-2-4 QUARTERLY REPORTS; PAYMENTS. (A) A quarterly period under this section is based on the City's fiscal year, with the first quarter beginning on October 1 and ending on December 31. 1/24/2025 10:28 AM STR HOT Regulations Page 1 of 2 COA Law Department City of Austin Council Meeting Backup: February 4, 2025File ID: 25-015833 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 (1) (2) (3) (1) WORKING DRAFT AND SUBJECT TO CHANGE – 1/24/2025 VERSION (B) On or before the last day of the month following each quarterly period, a person required to collect the tax imposed under this chapter shall: (1) file a written report with the department for that quarterly period, with a copy of the report for state hotel occupancy taxes required by Section 156.151 (Report and Payment) of the Texas Tax Code for the same quarterly period; and (2) pay the tax due for the quarter. (C) A report under this section shall be in the form prescribed by the department and shall include: the total consideration paid for rooms or short-term rentals subject to the tax in the preceding quarter; the total amount of tax collected; and the total amount of tax exemptions granted. (D) If requested by the department, a person responsible for collecting the tax shall provide the department with: the names, addresses, and identification relied upon to grant an exemption from the tax; and (2) any other information the department may reasonably require. (E) (F) The department may request, and a person required to collect the tax shall provide within a reasonable time, additional documentation verifying the information contained in the report to the City. The report required in Subsection (C) must also include the short-term rental license numbers for taxes collected during the preceding quarter. (G) Each quarter, a person who operates a short-term rental and uses a platform to collect payment for the use or possession, or for the right to the use or possession, of a short-term rental must provide the department with documentation that demonstrates how much hotel occupancy tax each platform collected on the person’s behalf. PART X. This ordinance takes effect on ___[90 days after Council adopts]____, 2025. 1/24/2025 10:28 AM STR HOT Regulations Page 2 of 2 COA Law Department City of Austin Council Meeting Backup: February 4, 2025File ID: 25-0158