Short-term rentals in Plano, explained properly.

Sec. 6-738 sets a non-refundable fee of $300 with each registration or renewal application, a non-refundable fee of $200 with a renewal application where the owner can show the STR has not been the subject of a nuisance incident or serious incident within the previous 12 months, and a $25 fee to reprint an already issued registration certificate. The director may discount registration by up to $100 for completing the City's annual training, and owners who complete the annual training are eligible for the discount when renewing (Sec. 6-733(c)). The fees are written into the Code by Ordinance No. 2024-4-14, adopted April 22, 2024. No separate fee schedule was read, so a later change to these amounts elsewhere has not been ruled out.

Sec. 6-739 says no STR may be operated without liability insurance covering at least $1,000,000 per occurrence, with a certificate of insurance on file with the director. Proof is required at the time of application, and notice of cancellation or change of insurance must be given to the director within 30 calendar days. Failure to maintain or provide proof of insurance can lead to denial of an application or a three-month suspension (Sec. 6-745(b)(1)), and operating without current, valid insurance is an offense (Sec. 6-748(a)(7)).

The registration application must name one or more designated contacts. Each must be accessible by telephone, able to respond or resolve the report or request and arrive on site, if required, within one hour of being contacted (or within a reasonable time considering the circumstances), and authorized to make decisions about the premises, the STR and its occupants (Sec. 6-736(a)). The owner must make sure the contact is available and authorized during all periods of guest occupancy, including nights and weekends (Sec. 6-736(b)). The City recommends that the contact be local to the DFW area, but a non-local contact is acceptable if the required accessibility, responsiveness and authority are kept (Sec. 6-736(c)).

Sec. 6-742 says each STR shall be equipped with a noise-monitoring device and that all data from it must be kept for 180 days, excluding data protected by privacy laws, and that each STR shall be equipped with an outdoor video monitoring device for security in a conspicuous area where there is no reasonable expectation of privacy. The Code defines a noise monitoring device as one that monitors noise levels, detects noise above an acceptable level for more than a continuous five-minute period, sends real-time alerts to the owner and operator, and complies with privacy laws.

Registrants must inspect each STR at least once a year; the director provides a list of areas to inspect, and the owner signs and dates each written report on a form prescribed or approved by the director and gives it to the director on request (Sec. 6-741(a)). All self-inspection documents and reports are kept for a minimum of three years from the date of the director's approval (Sec. 6-741(b)). A renewal application must include a completed copy of the prior year's annual self-inspection report (Sec. 6-737(g)).

Each STR must display, in a conspicuous, publicly accessible area inside the front entrance(s), a copy of the current and valid registration certificate, the contact information for the designated contact(s), pertinent local and state information, regulations and laws in a format provided by the director, and the host rules for the STR (Sec. 6-743). Failing to provide this information is an offense (Sec. 6-748(a)(4)).

The registrant must update the list of hosting platforms and other media (and listing links) given in the application within 24 hours of a new, revised or removed advertisement or promotion, in a method set by the director (Sec. 6-744(a)); the owner and registrant are presumed to have allowed an advertisement on a platform they listed (Sec. 6-744(c)). Hosting platforms must give anyone listing an STR in the city, before the listing, a notice that the Short-Term Rental Code prohibits short-term rental of premises within the City of Plano without an active short-term rental registration (Sec. 6-734(a)). Advertising, promoting or allowing use of an STR that is not in compliance with the registration, the article or other law is an offense (Sec. 6-748(a)(5)).

Sec. 6-744(b) says an owner, registrant or occupant shall not advertise, promote or allow a short-term rental for use that would be consistent with primary use as an "assembly hall" under the Zoning Ordinance. Sec. 6-748(b)(6) makes it an offense, for a person who intentionally, knowingly or recklessly allows it, to operate the STR as an "assembly hall" as defined in the Zoning Ordinance unless the short-term rental is located in a district where assembly hall use is permitted. The two sections are worded differently (Sec. 6-744(b) is worded without a district exception), and the Zoning Ordinance's assembly hall definition and district list were not read, so the rule is marked needs-review.

Sec. 6-740 says no STR may be operated without payment of hotel occupancy taxes as required under state law. On the City's request, the registrant must within 30 calendar days give an accounting of all occupants who rented the STR and the hotel occupancy taxes paid. An owner is not required to give that accounting for STRs rented through a hosting platform that has entered into a hosting platform agreement with the City, and is not required to remit hotel occupancy taxes on a booking that such a platform remits; the City may still audit an owner after a complaint or if it has reason to believe taxes were not paid. A City tax rate is not given here because no City tax rate source was read.

Sec. 6-749(a) says any violation of the article is a Class C misdemeanor punishable under Sec. 1-4(b) of the City Code by a fine not to exceed $500 for each offense, and every day a violation continues is a separate offense. The City may use civil and criminal remedies together and may seek injunctive relief under Local Government Code Chapter 211 or Chapter 54 (Sec. 6-749(b)). The offenses include operating without a valid registration, failing to pay registration fees, operating without insurance, and failing to designate a contact (Sec. 6-748(a)).

Sec. 6-745 lets the director suspend a registration, with immediate reapplication allowed, if it was issued in error or on incomplete or incorrect information; deny or suspend for three months for failure to maintain or prove insurance or to designate and keep available a designated contact; deny until six months after, or suspend for six months, for one nuisance incident; deny until one year after, or suspend for one year, for two or more nuisance incidents within a year or one serious incident that the registrant was aware of but consciously disregarded; deny an application for one year if the STR was operated, advertised or promoted without a valid registration; and deny or suspend for three months for other violations that remain uncorrected ten business days after written notice. A nuisance incident is presumed if law enforcement or code enforcement took action such as a citation, arrest or warrant. The director may disregard an incident the owner reported immediately and cooperated on. An application or renewal is denied, or a registration permanently revoked, if the premises cannot be legally used as a short-term rental under the Zoning Ordinance or, in the City's opinion, under other law, private contract or property covenant (Sec. 6-745(h)). A person may request a hearing within ten business days after service of the notice, which stays the action unless urgent physical-safety concerns require immediate action, and may appeal the decision to the city manager (Secs. 6-746, 6-747).

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.