Short-term rentals in Richardson, explained properly.

A short-term rental registration certificate is nontransferable and may not be assigned to another person or premises (Sec. 6-512(a)). Using a certificate that is not assigned to the owner, or at a different address or dwelling unit, is an offense (Sec. 6-520(g)).

Unless suspended or revoked earlier, a certificate expires on the last day of the calendar year in which it is issued. The holder applies for renewal before expiration on a form from the director, updates any changed information and signs a statement that the information is unchanged or has been updated and is accurate and complete. A complete renewal application received after the certificate has expired is treated as an application for a new registration. The renewal fee is non-refundable and is established by resolution of the City Council from time to time; that resolution was not read, so this page does not state an amount (Sec. 6-512(e)).

The application lists every owner, operator and agent of the rental and the owner of the premises with names, addresses, emails and phone numbers; names a contact person and the designated local responsible party who can respond to complaints within one hour or less; acknowledges that a registration does not supersede property-specific restrictions under law, agreement, lease, covenant or deed restriction; shows a floor plan identifying sleeping areas, evacuation routes and the location of fire extinguishers and smoke detectors; includes the guest safety information required by Sec. 6-514; carries a sworn statement that the owner has met and will keep meeting all requirements of the article; and lists every short-term rental listing service the applicant will use with a link to each listing. The director may require other information. The owner must update the City within 72 hours of any material change (Sec. 6-512(b), (d)).

On a complete renewal application the director may deny renewal if the certificate was issued in error or based on incorrect or false information supplied by the applicant, or if there are grounds for suspension or revocation under the article (Sec. 6-512(f)). A registration is issued at the City's discretion and is subject to revocation or denial under the article; there is no property right in it (Sec. 6-512(g)).

The owner designates a local responsible party who must be available in person or by phone at all times while guests are on the premises, must be present at the premises within one hour of a phone call from the director, and must be authorized to respond to complaints and make decisions about the premises and its occupants within one hour or less (Sec. 6-513(a)). The owner must update the City within 72 hours of any change to the contact person's name, address and 24-hour telephone number (Sec. 6-513(b)). The responsible party must attempt to contact the occupants within one hour of any contact from the City about complaints. Failing to keep the contact available and authorized during all periods of guest occupancy, including nights and weekends, is an offense and a ground for revocation (Secs. 6-517(a)(6), 6-520(j)).

Each owner provides guests a brochure and posts in a conspicuous location in the rental: the owner, operator or agent name and the 24-hour phone number of the local responsible party; neighborhood information including parking and noise restrictions, trash collection schedules, the location of required off-street parking and other parking, and the prohibition of parking in the yard and on unapproved surfaces; emergency and non-emergency phone numbers for police, fire and medical services and instructions for obtaining severe weather and disaster alerts; the floor plan showing exits and primary and secondary evacuation routes, placed near the front door; and a copy of the current and valid registration certificate (Sec. 6-514(a)). Failing to provide and post this information is an offense (Sec. 6-520(c)).

The application lists every short-term rental listing service the applicant will use and a link to each listing (Sec. 6-512(b)(7)). It is unlawful to advertise, promote or allow the use of a short-term rental that is out of compliance with the article or other law, and the owner is presumed to have allowed an advertisement or promotion on a listing service identified in the application (Sec. 6-520(d)). The definition of operating a short-term rental includes offering, advertising or marketing it for rent (Sec. 6-511).

It is unlawful for an owner or guest to allow or make noise that violates the City's noise ordinance (Chapter 13, Article III, Division 2), or to allow garbage in violation of Sec. 19-26 (Sec. 6-520(e), (f)); those two ordinances were not read for this page. It is also unlawful for an owner or other person who operates a rental to intentionally, knowingly or recklessly allow its use to promote or engage in an illegal activity, by persons in violation of the City's sex offender residency rules or state registration requirements, to promote or engage in illegal distribution or possession with intent to distribute marijuana, a dangerous drug or a controlled substance, to sell alcohol or carry on another activity that needs a permit or license under the Texas Alcoholic Beverage Code, or to operate as a sexually oriented business in violation of Sec. 12-162 (Sec. 6-520(m)).

Any violation of the article is a Class C misdemeanor punishable under Sec. 1-8(c) of the Code by a fine not to exceed $500.00 for each offense, and every day a violation continues is a separate offense (Sec. 6-521(a)). The City may use civil and criminal remedies together and may seek injunctive relief to prevent, restrain or correct unlawful use or illegal acts on the premises under Texas Local Government Code Chapters 211 and 54 (Sec. 6-521(b)). Section 1-8 was not read for this page.

The director may revoke a certificate in the director's discretion if two or more convictions for violations of the article or any other Code provision occurred on the premises in the preceding 12 months and show a habitual nuisance condition; if an incident in the preceding 12 months substantially interferes with the use or enjoyment of property and is reasonably likely to induce fear, including child abuse, sexual offenses, unlawful discharge of firearms, serious bodily injury or death, or an immediate public hazard; if the owner knowingly made a false statement in the application; if the owner fails to notify the director of a material change within 72 hours; if the owner fails to remit hotel occupancy tax; if the local responsible party fails to meet Sec. 6-513 during guest occupancy; or if in the City's opinion the premises cannot legally be used as a short-term rental under other law, private contract or property covenant, including deed restrictions, HOA rules or leases (the City is not responsible for interpreting or enforcing covenants or contracts) (Sec. 6-517(a)). Notice is in writing with reasons, by personal service or certified mail; revocation takes effect the day after personal service or five business days after mailing (Sec. 6-517(b)). The owner files a written request for a hearing with the director within ten business days of service, or the revocation is final; a request stays the revocation unless the director finds immediate revocation necessary because of urgent concern for physical safety, and the hearing is held within 20 business days of the request (Sec. 6-518). The owner may appeal the director's decision in writing to the city manager, who holds a hearing within 20 business days (Sec. 6-519). If revocation is not successfully appealed, no new, renewed or additional registration issues for any short-term rental on the premises for one year from the date of revocation (Sec. 6-517(c); also Sec. 6-512(g)).

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.