Short-term rentals in Seguin, explained properly.

All short-term rental licenses are valid for one year from the date of issuance and must be renewed annually. The applicant has up to 30 days after the expiration date of the current license to renew and pay the renewal fee (Sec. 22-703(e)(1) and (3)). The annual fees are set by the city council in Appendix C of the Seguin Code of Ordinances (Sec. 22-703(e)(2)); that schedule was not read, so no fee amount or fee date is stated. A re-inspection fee may be charged after a failed inspection (Sec. 22-707(a)).

Short-term rental licenses are non-transferable and cannot be assigned or transferred to another person or entity (Sec. 22-703(f)(1)).

No license or renewal license may be approved or issued for a short-term rental until the city has inspected the premises and found them compliant with all applicable codes, laws and regulations, including minimum health and safety requirements for use and occupancy (Sec. 22-707(a)). If the premises fail, a re-inspection fee may be charged for each later inspection under the Appendix C fee schedule, which was not read. The City may also inspect the premises with reasonable notice to the owner to check compliance (Sec. 22-707(b)).

Applicants provide at a minimum, on the City's form: the name, address, email and telephone number of the owner, of the operator and of the local contact person (with a 24-hour telephone number); the physical address; the number of bedrooms and proposed maximum occupancy; a detailed description identifying bedrooms and proposed occupancy limits; a site layout showing the proposed parking spaces designated for the rental; and a copy of the certificate of liability insurance (Sec. 22-703(c)). Proof of insurance is required at the time of application (Sec. 22-704(j)). The City's form itself was not read.

It is unlawful for the owner of a premises operating as a short-term rental to operate without liability insurance that provides coverage of up to $1,000,000 per occurrence. A certificate of insurance must be on file with the City of Seguin, and proof of insurance is required at the time of application (Sec. 22-704(j)(1)).

An owner or operator shall not rent or lease a short-term rental for more than 30 consecutive days (Sec. 22-704(c)(2)); the definition of short-term rental is likewise a dwelling unit used for lodging for no more than 30 consecutive days (Sec. 22-702). If the rental is temporarily leased for more than 30 consecutive days to the same occupant(s), the owner or operator must notify the city of the extended lease period to request that the property's short-term rental license be preserved (Sec. 22-704(c)(3)).

An owner or operator shall not rent or lease a short-term rental for a period of less than one night (Sec. 22-704(c)(1)).

Short-term rental units shall be allowed in accessory dwelling units, but are limited to the rental of one accessory dwelling unit per lot (Sec. 22-704(b)(1)). The article defines an accessory dwelling unit as a secondary separate dwelling unit on a lot that is no larger than 50 percent of the square footage of the primary structure and no larger than 800 square feet (Sec. 22-702). Sec. 22-704(a)(1) also limits short-term rentals to the zoning districts shown in the Unified Development Code land use matrix, which was not read, so the answer for a particular lot depends on its zoning.

The maximum number of people permitted to stay in a short-term rental is two adults per bedroom, plus two additional adults. Adults means individuals over the age of 18 (Sec. 22-704(d)). A bedroom is a living area designed and furnished for sleeping with the egress required by the International Residential Code (Sec. 22-702).

Parking for each short-term rental is required at one space per bedroom (Sec. 22-704(e)(1)). Off-street spaces can be in the driveway, garage or carport on the property, and on-street spaces along a residential street count only if directly adjacent to the property frontage. Parking in yards or on unimproved surfaces is prohibited, and added spaces need a site development permit under the Unified Development Code first. The parking requirements shall not apply to short-term rental units located within the downtown historic district (Sec. 22-704(e)(6)). It is unlawful to park or occupy a motor home, recreational vehicle, boat or commercial vehicle on the premises of a short-term rental or on a street near one (Sec. 22-704(e)(7)).

Trash receptacles, bins, containers or bags are placed on or near the street or alley for pickup no earlier than 24 hours before the scheduled pickup day and returned to an area near the unit no later than 24 hours after it. Concierge service may be required and enforced at locations with repeat violations of this section (Sec. 22-704(f)).

The owner designates a local contact person as a responsible party who can be contacted about immediate concerns and complaints from the city or the public. The contact must be available 24 hours a day when occupants are renting, must respond to a valid concern or complaint within one hour, and must resolve the issue or be present at the premises within two hours (Sec. 22-704(g)).

A conspicuous posting inside the rental must show a sketch of the floor plan identifying sleeping areas, maximum number of guests, designated parking spaces, evacuation routes and fire extinguisher locations, along with a copy of the City's short-term rental regulations. For properties within or near a designated floodplain, detailed information about local flood warnings and sirens and evacuation routes from flood-prone areas must also be posted (Sec. 22-704(h)).

Sec. 22-704(i) states that there shall be no outdoor on-site or off-site signage or displays advertising or indicating that the property is a short-term rental.

It is unlawful to advertise, promote or operate a special event at the site of the short-term rental, including operations as an event center or for a banquet, wedding, reception, reunion, party, concert or similar activity that would assemble large numbers of invitees. Sleeping or camping outdoors, in tents or otherwise, is prohibited (Sec. 22-704(l)).

Smoke alarms must be installed and operational in each bedroom, immediately outside each bedroom and on each floor. A carbon monoxide detector is required on each floor if the rental has natural gas, propane or an attached garage. A fire extinguisher must be available on each floor, inspected annually under the International Fire Code and tagged by a third-party inspector. Gas appliances must be properly ventilated outside the home, each bedroom needs at least one means of egress directly to the outdoors, pathways and stairways must stay unobstructed, and pool and spa facilities must comply with the adopted International Property Maintenance Code (Sec. 22-704(k)).

The occupants of the short-term rental shall comply with the Noise Ordinance as adopted by the City of Seguin (Sec. 22-705). A violation of the noise ordinance confirmed with a police report is a minor violation under the article (Sec. 22-708(a)(3)). The Noise Ordinance itself was not read, so its limits and hours are not stated here.

The article defines hotel occupancy tax as the tax assessed and collected for operating any short-term rental under Texas Tax Code Chapter 351 (Sec. 22-702). The owner or operator must pay and remain current on all hotel occupancy taxes owed to the city under the Texas Tax Code (Sec. 22-706). Failing to remit hotel occupancy tax within 60 days of a delinquency notice from the City is a major violation (Sec. 22-708(a)(6)). The City's hotel tax rate and filing process were not read, so this page gives neither a City rate nor a combined total with the State tax.

Violations of the rental operation requirements in Sec. 22-704 are minor violations, and the director of planning and codes may dismiss a minor violation that is addressed promptly and effectively. Three minor violations within a 12-month period constitute one major violation. Operating a short-term rental in the city limits without a valid license or renewal license is a major violation, as is failing to remit hotel occupancy tax within 60 days of a delinquency notice and omitting or giving false information on a license application (Sec. 22-708(a)).

If a short-term rental accumulates three or more major violations within a 12-month period, the director of planning and codes may suspend the license for 90 days; a license suspended during its annual period has a renewal fee double the standard renewal fee (Sec. 22-708(b)). If a license is suspended twice in a 12-month period, the director refers it to city council for possible revocation after a public hearing, with notice mailed at least ten days before to owners of property within 200 feet; council may revoke the permit or suspend it for an additional 90 to 180 days (Sec. 22-708(c)(1)-(4)). The article gives two different waiting periods after revocation: the property is not eligible to apply for or receive a short-term rental permit for six months from the date of revocation (Sec. 22-708(c)(5)), and a license shall not be issued for one year from the date of revocation (Sec. 22-708(c)(6)). This page does not choose between them. An owner or operator who continues to operate after revocation is subject to a fine not to exceed $2,000 plus court costs, with each act and each day a separate offense (Sec. 22-708(c)(7)).

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.