Short-term rentals in Pearland, explained properly.

Sec. 20-112(b) says a permit shall not be transferrable. The owner whose permit is revoked may not apply for a new permit for twelve months after the revocation (Sec. 20-115(d)).

Sec. 20-114(g)(4) makes it unlawful to allow the rental of a short-term rental for less than a twenty-four hour period. The article defines a short-term rental as one rented for less than thirty consecutive days (Sec. 20-110); a longer minimum stay is not shown here.

See the permit rule for the full list (Sec. 20-112(a)). Before any change of the emergency contact's name, address or 24-hour phone number, the permit holder must give the City the updated information before renting to guests (Sec. 20-112(d)). The fee amount for the nonrefundable application fee is not shown in Article IX.

Sec. 20-112(c): a permit expires one year after its date of issuance unless the director revoked it earlier. If the permit holder commits no more than one substantiated violation of the article during the permit period, the permit is extended automatically for one additional year. No permit extends beyond a two-year term. Each owner also certifies in writing each year, before a renewal permit issues, that the premises meet the initial inspection standards (Sec. 20-113(c)).

On application, and before guests occupy the rental, the applicant schedules an initial inspection of the residential structure with the fire marshal's office. It checks the number of bedrooms, working smoke detectors in bedrooms and hallways, two means of escape from each bedroom, working CO detectors, and a fire extinguisher that is present, accessible and inspected (Sec. 20-113(a)). If the premises are deficient the City gives written notice, the applicant schedules a re-inspection, and no permit issues until the premises pass (Sec. 20-113(b)). The City may inspect further, at its sole discretion, when a violation is reported or suspected (Sec. 20-113(d)). The inspection fee, if any, is not shown in Article IX.

Sec. 20-114(b): no more than two adult guests per bedroom, and no more than two additional adults, are allowed in a short-term rental, except that the maximum occupancy is ten persons, including adults and children. The permit must show the maximum permitted occupancy, and every advertisement must state the maximum permitted occupancy limits (Secs. 20-114(d), (e)).

Sec. 20-114(c): guests who park in the public right-of-way must do so in a manner that preserves the ingress and egress of adjacent and neighboring properties.

Advertisements must specify the City permit number, the maximum permitted occupancy limits, the off-street parking requirements, and a written prohibition against use as a party or entertainment venue or any commercial or nonresidential use that violates the City's zoning regulations (Sec. 20-114(d)). There may be no external on-site or off-site advertising signs or displays indicating a property is a short-term rental (Sec. 20-114(a)). The owner posts a copy of the City-issued permit at a visible location inside the primary entrance, showing the owner, operator or agent's name and 24-hour phone number, the fire extinguisher locations, the maximum occupancy, the parking requirements and the party-venue prohibition (Sec. 20-114(e)).

The application names an emergency contact who is the owner, operator or designated agent and is responsible and authorized to respond to complaints within one hour or less (Sec. 20-112(a)(2)). If a law enforcement officer responds to a complaint and issues a citation or warning, the responsible agent may be contacted, and must contact the occupants within one hour of the City's contact (Sec. 20-114(f)).

Sec. 20-114(g) makes it unlawful to operate a short-term rental that fails to comply with all applicable City and State laws and codes; to offer or allow use as a party venue or for a commercial or nonresidential use that violates the City's zoning regulations; to leave the written party-venue prohibition out of an advertisement, listing or other publication; to allow a rental of less than a 24-hour period; or to allow tents, hammocks, recreational or camper vehicles or other vehicles and outdoor areas that are not residential dwellings to be used as short-term rentals.

Article IX defines hotel occupancy tax as tax paid under Texas Tax Code Chapter 351 and Chapter 28, Article III of the Pearland Code of Ordinances (Sec. 20-110). The permit application asks whether the City's hotel occupancy tax for the previous twelve months was paid (Sec. 20-112(a)(6)), and a permit application is denied or a permit may be revoked if an owner operates a short-term rental without registering and paying all local, county and state hotel occupancy taxes (Sec. 20-115(a)(5)). The tax rate is not shown in Article IX and this page adds no combined total with the state tax.

Grounds: the property is not in compliance with applicable zoning requirements; a statement in the application is incomplete, inaccurate, misleading or false; three or more substantiated violations of the article or applicable law within a twelve-month period; an outstanding debt to the City (other than ad valorem taxes and special assessments); or operating without registering and paying all local, county and state hotel occupancy taxes (Sec. 20-115(a)). Before revocation the director gives written notice; the permit is revoked at the end of the tenth calendar day after service unless the owner makes a written request for a hearing in that period, in which case the revocation does not take effect until the hearing process ends (Sec. 20-115(b)). The director conducts the hearing and furnishes a written decision within three business days (Sec. 20-115(c)). An owner whose permit is revoked may not reapply for twelve months (Sec. 20-115(d)).

Sec. 20-116: any person who knowingly or intentionally violates the article is punishable by a fine not to exceed the fine established in section 1-11 of the City Code. Each day the property is used or advertised as a short-term rental in violation of the article is a separate offense. The dollar amount in Sec. 1-11 is not shown in the pages we saved.

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.