Short-term rentals in Port Arthur, explained properly.

Sec. 22-672(b) says a short-term rental permit is not transferable. A permit may be denied, suspended or revoked if the short-term rental is sold or otherwise transferred (Sec. 22-674(f)(5)).

The registration form must be accompanied by a non-refundable per-unit registration fee as established by the city council (Sec. 22-672(d)(1)). Registration fees are not pro-rated (Sec. 22-672(d)(2)). We haven't reviewed the fee schedule, so no amount is stated here.

Sec. 22-672(d)(2) says registration of a short-term rental is valid for 12 months based on the calendar year and that fees will not be pro-rated. A permit may be denied, suspended or revoked if the permit holder is overdue in payment of taxes, fees, fines or penalties, or if application information has changed and the holder has not notified the City (Sec. 22-674(f)(4), (6)).

Sec. 22-673(e) says that, to ensure continued compliance, short-term rental properties will be subject to an inspection at registration and on subsequent renewal unless an immediate inspection is required to address a specific concern or suspected violation. Missing a scheduled inspection is subject to a reinspection fee shown in the City's fee schedule; the amount hasn't been reviewed yet. Owners and operators must also ensure all building and fire related construction conforms to the City's adopted building code (Sec. 22-673(b)).

Sec. 22-672(a)(6) sets maximum occupancy at two persons per sleeping room, plus an additional four per dwelling, and for residential properties with more than 3,250 square feet of conditioned living space two persons per sleeping room plus an additional six. The limit is set when a permit is issued or renewed and cannot be raised by later construction without an inspection, approval by the building official and an amended registration form. A sleeping room is an enclosed habitable space that complies with the City's adopted codes; living rooms, family rooms and similar rooms with fold-down beds or convertible couches do not count (Sec. 22-672(a)(5)). Non-compliant sleeping rooms are left out of the calculation and the tenant information sheet must say they may not be used for sleeping (Sec. 22-673(d)).

Sec. 22-672(a)(7) requires each short-term rental to have the minimum toters in service from March 1 to September 8 each year: one toter for one to two legal sleeping rooms, two toters for three to five, and three toters for six. Toters are delivered close to March 1 based on the sleeping rooms on the registration, and extra solid waste fees continue until the owner or registered agent cancels the additional service in September. In the off-season (September 9 to February 29) service may be reduced to a single toter.

Sec. 22-672(e) requires the unique registration number issued with the permit to appear in all advertising for the short-term rental. An advertisement promoting a dwelling unit for short-term rental in violation of the article is prima facie evidence of a violation (Sec. 22-671(f)).

The registration names a designated local contact person (name, address, email and 24-hour phone) who is the operator or a person the operator designates. That person must be available 24 hours a day, seven days a week, to respond in person within one hour to complaints about the condition, operation or conduct of occupants and to take immediate remedial action (Sec. 22-672(a)(2)-(3)). The contact's name and 24/7 phone number must also be on the posted tenant information sheet (Sec. 22-673(a)(1)).

The owner, operator or agent posts a tenant information sheet giving basic minimum standards of conduct. At a minimum it lists the designated contact person with a 24/7 phone number; the occupancy limit set at registration; where off-street and other parking is and any adjacent no-parking fire lanes; notice that failing to follow the occupancy and parking requirements is a Code violation and may lead to citation of the occupants; noise control (Chapter 34, Article V); trash collection timing and receptacle placement; the location of all required fire extinguishers; and other information the administrator requires (Sec. 22-673(a)).

Sec. 22-673(g) requires the sign to display the contact and the 24/7 contact phone number in legible type no less than one and one-half inches in height. For multi-family properties or more than four attached units connected horizontally or vertically, a smaller sign no less than three inches by five inches placed the same way may be used.

Sec. 22-673(c) requires a minimum of one class 2A:10B:C type fire extinguisher (standard 5 lb.) on every floor with an enclosed space of any kind, mounted so as to be conspicuous and convenient for the occupants. Sec. 22-673(f) says all vacation rental units will be immediately evacuated upon notice.

Sec. 22-672(f) says each short-term rental is subject to compliance with Texas Tax Code ch. 351 and that the City shall levy a hotel occupancy tax in any amount up to, and including, seven percent of the price paid for the short-term rental, not counting food and drink. Owners and operators must comply with Chapter 102 (taxation) of the Code (Sec. 22-674(e)). A permit may be denied, suspended or revoked if the holder is overdue on taxes or does not provide documentation, when asked, that all occupancy taxes have been paid (Sec. 22-674(f)(4)). The City rate actually charged is in Chapter 102, which hasn't been reviewed, so none is stated here and no combined state-and-City total is given. The Texas state hotel tax is covered in the Texas rules on this page.

Sec. 22-674(a): a violation is a class C misdemeanor punishable on conviction by a fine not to exceed $500.00 per offense, and each day a violation continues is a separate offense. Under state law and the Code, the maximum penalty for offenses under the Code governing fire safety, zoning, public health and sanitation does not exceed $2,000.00. The city manager or designee may also direct the city attorney to bring an action to enjoin a violation (Sec. 22-674(b)). If a Code penalty is greater than the state-law maximum for the same or a similar offense, the state maximum applies (Sec. 22-674(d)).

The listed reasons are three or more notices of violation within a 12-month period; false or misleading information on an application; representing a property as available as a short-term rental without a valid permit; being overdue in taxes, fees, fines or penalties or failing to show occupancy taxes were paid; the rental being sold or otherwise transferred; and application information that has changed without notice to the City (Sec. 22-674(f)). The owner or operator may appeal a denial or revocation to the administrator by written notice delivered within ten business days. The administrator has 20 business days from receipt to give a written decision (Sec. 22-674(g)(1)). Within ten business days of service of notice the appellant may ask in writing for a hearing to show cause; the hearing is scheduled within 30 business days of the request, with ten business days' notice (Sec. 22-674(g)(2)). Judicial review may be sought in district court within 30 calendar days after service of the decision; the applicant bears the burden and the substantial evidence standard applies (Sec. 22-674(g)(5)).

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.