Short-term rentals in Boerne, explained properly.

In areas zoned for residential use, no short-term rental may operate within 200 feet of another short-term rental on the same block face, measured property line to property line, and only one rental may operate on any lot, property or parcel (Sec. 23-7(a)(1)a). Commercially zoned property in the Historic, Downtown and River Road Overlay Districts has no separation requirement, but residentially zoned property in those overlays is subject to the 200-foot rule (Sec. 23-7(a)(1)b). A property owner who would otherwise break the separation distance or lot limit may apply to the Zoning Board of Adjustment for a special exception under section 1.12(C) of the Unified Development Code; the Board may consider the impact on the neighborhood, quiet enjoyment, streets and parking, whether the whole residence or only part is rented, whether the applicant lives there or uses it as an investment property, and other rentals already operating on the block (Sec. 23-7(a)(1)d). A rental lawfully in existence on the ordinance's effective date on preexisting permits and with current hotel occupancy tax remittance is a legal nonconforming use, and renewal or transfer of its permit is not subject to the separation distance (Sec. 23-9(d)(1)). The Unified Development Code section 1.12(C) was not read.

Rentals existing when the ordinance was adopted had six months from adoption to come into compliance in order to be eligible for permit renewal. A rental that was lawfully in existence on preexisting permits and current hotel occupancy tax remittance on the ordinance's effective date is a legal nonconforming use, and its renewal or transfer is not subject to the minimum separation distance. A temporary short-term rental that was lawfully in existence on the effective date is likewise a legal nonconforming use not subject to the separation distance, but had to come into conformance with the other requirements within six months of adoption (Sec. 23-9(d)). The exemption covers the separation distance only. The Code shows the ordinance as adopted August 8, 2023.

A short-term rental permit may be reserved by the new owner or operator within 90 days of the date of change in ownership. The transferee must complete a short-term rental permit application and inspection and pay all applicable fees. A permit may not be transferred or applied to another location. Before the reservation and the change in ownership, the current owner must give the new owner a certificate of paid hotel taxes from the City finance department (Sec. 23-8(h)).

A permit expires two years from its effective date and must be renewed within 30 days after expiration. The owner or operator may submit a renewal application 30 days before expiration, but no later than the end of the renewal period, with the required permit fee and documents. An owner who owes the City fees or taxes, including hotel occupancy tax and utility service fees, cannot register a short-term rental until the amount is paid in full or another resolution is approved by the City finance department. The owner must tell the City in writing within 20 calendar days of any change to the information in the application. The City may revoke a permit or deny renewal if it is not renewed within 30 days of the required renewal date (Secs. 23-8(f), 23-8(g), 23-9(e)(1)b).

It is unlawful for an owner to rent or lease a short-term rental for a period of less than one night (Sec. 23-7(a)(9)). The ordinance's definition covers rentals of not more than 30 days.

Applications must include: the applicant's information (an individual owner, management company, partnership or legal entity, with organization documents and owner names for entities); the name and 24-hour number of the designated emergency representative if different from the applicant; a certification under penalty of perjury that the information is accurate and the rental will comply; the street address; the rental type (accessory dwelling, owner-occupied or unoccupied); a plot plan showing the parking spaces; a dimensioned floor plan showing the proposed maximum occupants, bedrooms, other living spaces, safety features and evacuation routes; proof of liability insurance; a contact for scheduling the inspection; and confirmation that notice of the use of a short-term rental has been given to the HOA, if applicable. Missing items make the application invalid, and the City may ask for more information (Sec. 23-6(b)). Incomplete applications are not processed and no permit is issued (Sec. 23-8(b)).

The application must include proof of liability insurance with minimum coverage of $500,000 per occurrence and $1,000,000 in the aggregate. The policy must carry an endorsement giving the City at least 30 days' notice of cancellation, non-renewal or material change, and at least 10 days' notice if the premium is not paid (Sec. 23-6(b)(6)).

An applicant must complete a safety inspection of the property. It is performed either by a City inspector, with the $100 inspection fee, or by a licensed inspector who reports the results on the City's short-term rental inspection checklist (the Code's text says 'licensed real inspector'). An applicant whose property is in the City's extra-territorial jurisdiction is not required to get an inspection (Sec. 23-8(d)). The application includes a contact phone number and email for scheduling the inspection (Sec. 23-6(b)(7)). Whether the permit requirement itself reaches the extra-territorial jurisdiction was not confirmed from the text read.

The maximum number of people who may stay in a short-term rental is two per bedroom plus two additional people. An owner who would otherwise exceed the limit may apply to the Zoning Board of Adjustment for a special exception under section 1.12(C) of the Unified Development Code, and the Board may weigh the neighborhood factors in Sec. 23-7(a)(1)d plus the size of the property and fire safety (Sec. 23-7(a)(2)).

A minimum of one parking space per bedroom rented must be provided on-site. On-street parking may count if it abuts the property, is at least 25 feet long per space and leaves clear space for a mailbox and trash receptacle. Owners, operators and occupants must also follow the City's stopping, standing and parking ordinance (Sec. 23-7(a)(7)).

The local authorized representative is an individual with a 24-hour contact number, designated by the owner or operator, who must respond to complaints about violations of federal, state or local law and to emergency conditions such as fire, natural disaster, flood, burst pipes, collapse hazard, emergency repairs and violent crime. The application names this person if different from the applicant, and the representative's 24-hour number must be shown in the guest information (Secs. 23-3, 23-6(b)(1)e, 23-7(b)(2)).

The owner or operator may not advertise or promote the rental, or let anyone else do so, without including the occupancy limits, parking standards and City permit number in the listing (Sec. 23-7(a)(11)). The permit number must appear in all advertisements, online, in print or otherwise (Sec. 23-8(e)). Advertising before the permit is issued is covered by the permit requirement (Secs. 23-5, 23-6(a)). An advertisement for rental for less than 30 days is prima facie evidence that the property is used as a short-term rental (Sec. 23-9(b)).

The information must include: the owner's or operator's contact details with a direct phone number; the local authorized representative's 24-hour number; neighborhood information such as parking restrictions, on-site parking, noise and amplified sound restrictions, the trash collection schedule and water restrictions; whether the property is in a floodplain; emergency and non-emergency telephone numbers and instructions for severe weather and disaster alerts; and a sketch of the floor plan showing sleeping areas, the maximum number of guests, evacuation routes, fire extinguisher locations and authorized parking spaces (not including the garage) (Sec. 23-7(b)).

It is unlawful to advertise, promote or operate a special event at a short-term rental, including an event center, banquet, wedding, reception, reunion, party or concert that would assemble large numbers of invitees (Sec. 23-7(a)(10)). No sign may identify the rental except a single nameplate of no more than 1 square foot attached flat to the main building (Sec. 23-7(a)(3)). Noise that would violate Chapter 14, Article V of the City Code is unlawful (Sec. 23-7(a)(8)). No recreational vehicle, tent or temporary structure may be used as a short-term rental (Sec. 23-7(a)(5)). Structures must meet the building code in effect when they were built (Sec. 23-7(a)(6)), and a home on a well or septic system must meet Cow Creek and Kendall County requirements (Sec. 23-7(a)(12)).

The owner or operator must register with the City finance department to pay hotel occupancy taxes before the permit application is approved, and must remit all applicable hotel occupancy taxes in a timely manner (Sec. 23-7(a)(4)). Unpaid City taxes and fees, including hotel occupancy tax, bar registering a permit until paid (Sec. 23-8(f)(3)), and the City may revoke a permit or deny renewal if hotel occupancy tax is not paid within 60 days of a delinquency notice, or if no hotel occupancy tax was collected for 24 months (Sec. 23-9(e)(1)). The City's hotel occupancy tax rate and tax page were not read for this page.

An owner, operator or occupant commits an offense by breaking any rule of the chapter, allowing an unregistered rental, continuing to operate after failing to renew, or giving false or incorrect application information. The offense is a class C misdemeanor with a fine not to exceed $2,000 plus court costs for violations of regulations governing fire safety, zoning, or public health and sanitation (other than dumping of refuse), $4,000 plus court costs for dumping of refuse, and $500 plus court costs for all other violations. Each act of violation and each day a violation occurs is a separate offense (Sec. 23-9(a), (c)).

The City may revoke a permit or deny renewal if: hotel occupancy tax is not remitted and remains unpaid 60 days after a delinquency notice; the permit is not renewed within 30 days of the renewal date; the property is declared a hazard or substandard structure by the building official; or no hotel occupancy tax was collected in the previous 24 months (not applied if the owner tells the City it is temporarily suspending operation to renovate, to use it as a primary residence, or for other reasonable justification the Director accepts). The City may also revoke or deny renewal if the owner, operator or any occupant fails to comply three or more times within 12 months, or if the property has five or more violations of federal law, state law or other City Code provisions in 24 months. No new permit may be sought for the property for 12 months after a denial or revocation, and a revoked permit means no new permit for at least one year. The City serves notice of intent to revoke by certified mail or posting on the property; revocation is effective immediately and the owner must stop operating within 10 days of receiving the notice. The Director's decision to revoke or deny may be appealed to the city manager, in a sworn filing with the Director no later than the 20th day after the revocation or denial; the city manager or a designee hears it within 10 days of filing and may affirm, modify or reverse. Judicial review requires a petition filed within 30 days of receiving the decision (Secs. 23-9(e), 23-10).

Texas Tax Code § 156.052 sets the state hotel occupancy tax at 6% of the price paid for a room, and § 156.051(a) applies it to rooms or spaces costing $15 or more a day. Section 156.001(b) makes a short-term rental (renting all or part of a residential property to someone who is not a permanent resident) a "hotel" for state and local hotel occupancy taxes. Stays of at least 30 consecutive days, with no interruption of payment, are not taxed (§ 156.101). Local hotel taxes are added on top and vary by city and county.

Whoever owns, operates, manages or controls a hotel must collect the state tax (Tax Code § 156.053), and the Comptroller's office treats short-term rentals the same way. The Comptroller does not issue printed hotel tax permits; a business that reports the tax sends Form AP-102 (Hotel Occupancy Tax Questionnaire) to the Comptroller. A short-term rental platform that has agreed with the owner to collect and remit state hotel tax files Form AP-102 itself, and an owner who rents only through such a platform does not collect and remit the state tax. An owner who takes bookings directly or through a platform that does not collect must collect and remit the state tax. Local hotel taxes are handled separately by the city and county.

Each calendar month is a reporting period, with the return and tax due to the Comptroller by the 20th of the following month (Tax Code § 156.151(b)). A taxpayer who owes less than $500 for a month or $1,500 for a quarter files quarterly, due the 20th day after the quarter ends (§ 156.151(c)). The Comptroller allows a 1% discount when the return is filed and paid on time.

Cities, some counties and special purpose districts may levy their own hotel taxes, generally up to 7%, and sports or community venue projects may add up to 2% (Dallas County up to 3%). Local hotel taxes apply to sleeping rooms costing $2 or more a day. The Comptroller collects only the 6% state tax; cities and counties collect their own local hotel taxes, so hosts should check with the city and county where the rental is.