Short-term rentals in Kerrville, explained properly.

To get the annual permit, the owner or designated operator submits an application to the director with the non-refundable fee (Sec. 80-4(a)). It must give the owner's and designated operator's name, addresses, email and phone (and, for a legal entity, the names of all partners, directors, members and officers); a scaled site plan showing property lines, parking spaces and fences; an agreement to pay ad valorem and occupancy taxes owed to the City on the property; the maximum number of guests; a sworn City form confirming working smoke detectors, a fire extinguisher and adequate exits to an exterior area in each bedroom, with the floor-plan sketch attached; and a statement under penalty of perjury that the application is true and complete. The director issues the permit, showing the number of authorized guests, on payment and a complete application if the applicant has complied with the chapter, the owner does not own or operate another permitted unit in the city whose permit is suspended or revoked, and the applicant has not knowingly made a material false statement (Sec. 80-7).

The application must name a designated operator; where the applicant is the owner, the owner must assign a designated operator, who may be the owner (Sec. 80-4(a)(1)). The designated operator must be able to respond to the director or a guest within a reasonable time of contact. The applicant must be the owner or the designated operator. The designated operator also provides guests a posted or emailed guest notification form (Sec. 80-9(7)).

All annual permits expire at 11:59 p.m. on December 31, including permits issued during the year (Sec. 80-14(a)). A permittee must apply for renewal at least 15 days before expiration on the director's form, update any changed information, sign a statement that nothing has changed (or that updates are accurate) and pay the annual fee (Sec. 80-14(b)). The permittee must notify the department within ten days after any material change in the contact information in the application (Sec. 80-8).

The maximum number of persons allowed to sleep in a short-term rental unit is the limit in the City's building codes (Chapter 26 of the Code), which treat units where occupants are primarily transient (stays under 30 days) as a more restrictive occupancy class (Sec. 80-11(d)). The limit counts only the persons renting the unit for the period and excludes other people visiting the occupants. The application states the maximum number of guests, the permit shows the authorized number (Secs. 80-4(a)(5), 80-7), and the occupancy limit must be included in all marketing materials, advertisements and online listings (Sec. 80-9(8)).

Sec. 80-11(a) requires a minimum of one off-street parking space per bedroom, and the spaces must be improved to the City's design standards before the permit is issued. The parking rule does not apply to properties in the Downtown Arts and Cultural Zoning District, or to properties whose designated operator gives the City evidence that the property was in use as a short-term rental before October 1, 2019. The City's planning FAQ describes the parking rule as typically one space per bedroom plus an additional space if no manager lives on site; the Code text does not include the additional space, and this page follows the Code.

Permittees must install working smoke alarms in each sleeping room, immediately outside each sleeping area and on each story, including any basement or attic (Sec. 80-9(2)); keep pathways and stairways unobstructed (Sec. 80-9(3)); post a floor-plan sketch showing sleeping areas, maximum number of guests, evacuation routes and fire extinguisher locations (Sec. 80-9(4)); keep the premises clean and sanitary (Sec. 80-9(5)); and keep fire escapes and exits in good repair and accessible at all times (Sec. 80-10). The application affirms smoke detectors, a fire extinguisher and adequate exits to an exterior area in each bedroom (Sec. 80-4(a)(6)).

The designated operator must give guests, by a posted form and/or email, the owner's or operator's name and contact information, emergency information including police and fire phone numbers, and the occupancy limits (Sec. 80-9(7)). In R-E, R-1, R-1A, R-2 and RT zoning districts, the only sign allowed on the premises is a non-illuminated nameplate of up to three square feet, attached to the structure or fence or free-standing and no more than three feet high; in commercial districts signs must meet Chapter 92 unless the rental was operating before October 1, 2019 (Sec. 80-11(b)). On residentially zoned property all lighting must be directed toward the establishment and not at adjacent properties (Sec. 80-11(c)).

A permittee or any other person who violates a provision of Chapter 80 or fails to perform a duty it requires commits an offense punishable by a fine not to exceed $2,000. A separate offense occurs each day or part of a day the violation is committed, continued or permitted, and these remedies are cumulative with other laws (Sec. 80-15).

The director may issue a written warning for violations that do not pose a serious threat, giving the permittee no less than ten days to comply (Sec. 80-12(a)). The director may immediately revoke or suspend a permit, or deny issuance or renewal, if the police or fire chief determines the unit poses a serious threat to public health, safety or welfare, or if the applicant knowingly made a false statement of material fact (Sec. 80-12(b)). A unit whose permit is suspended or revoked may not admit new guests (Sec. 80-12(c)); the director may instead enter a compliance agreement (Sec. 80-12(d)). A permittee may appeal a denial, suspension or revocation in writing to the city secretary within 45 days after receiving the decision, and the unit may not operate during the appeal (Sec. 80-13(a)).

The City's planning FAQ says a legal short-term rental is required to pay the local Hotel Occupancy Tax. Chapter 80 requires the permittee to comply with the City's occupancy tax requirements in the Code of Ordinances (Sec. 80-9(6)), and the permit application includes an agreement to pay all ad valorem taxes and occupancy taxes, including fees, fines and penalties owed to the City on the property (Sec. 80-4(a)(4)). The City's hotel tax chapter, which sets the rate and filing rules, was not read for this page, so no City rate is given and no combined total is shown. The State's 6% hotel tax is separate (see the Texas rules above).

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.