City Of Fort Worth: Phased Approach To Focus On Short-Term Rentals' Hotel Tax Collections

Press release from City of Fort Worth:

March 07, 2022

The City of Fort Worth is implementing a phased approach to collecting hotel occupancy taxes from short-term rental properties where guests stay overnight for one to 30 days.

The city levies a 9% occupancy tax on hotels. While city code does not include specific language regarding short-term rentals, it broadly defines a hotel to include tourist homes. Short-term rentals currently report and remit their payments on a voluntary basis.

In fiscal year 2021, 20 short-term rentals reported about $330,000 in gross receipts, which generated about $28,000 in hotel occupancy tax to the city. This represents a tiny portion of the $23.75 million in total hotel occupancy taxes collected during the year.

As part of a new phased approach to collecting the tax from short-term rental properties, the city will hire an outside firm to identify these properties operating in Fort Worth. After collecting data, the city intends to have a third-party firm implement a mandatory registration and hotel occupancy tax collection program.

Short-term rentals are not currently allowed in residential zoning districts, but property owners in these districts may apply for a zoning change to allow the short-term rental use.

Going forward, the city may consider policy changes after reviewing the collected data and consulting with neighborhood associations, residents and property owners.

Get articles like this in your inbox. Subscribe to City News.

This press release was produced by City of Fort Worth. The views expressed here are the author’s own.