Kerr County officials clarify HOT fund issue

Kerr County Commissioners unanimously supported a 7% county Hotel Occupancy Tax (HOT) for short-term rentals in the unincorporated areas of the county.  The matter is now in the hands of Texas Senator (District 24) Pete Flores who will take it to the Texas Legislature.

“What we want our local community to understand is that this proposed fee would not be on any rentals more than 30 days, and it would not impact children’s camps,” explained Kerr County Commissioner Pct. 2 Rich Paces.  “It also will not affect RV parks, except for those who offer short-term stays in fixed cabin facilities,” he added.

“What it will do is greatly help in funding the planned $2.5 million in improvements needed at our Hill Country Youth Event Center (HCYEC).  Certain repairs and improvements are needed at the HCYEC, starting with the indoor arena, but an $8.1 million bond issue that would have covered these needs failed.  The current, reduced scope of improvements need to be made to keep the indoor arena operational, so Kerr County Tax Assessor-Collector Bob Reeves had the idea that we could look into implementing a 7% fee on out-of-town guests’ stays.”

According to Reeves, initial estimates are that this initiative could generate an estimated $350,000 in revenue each year, and it would not add to the burden already faced by local taxpayers.

~ The proposed 7% HOT for the county would only apply to short-term rentals outside Kerrville and Ingram city limits in the unincorporated areas of the county.

~ It would not impact children’s camps.

~ It would not impact rentals of 30 days or longer.

~ It would not impact RV parks (except for fixed cabin facilities that are rented out for short-term stays at those sites).

~ It would raise revenue to help pay for needed repairs and improvements to the Hill Country Youth Event Center (HCYEC), which, in turn, would help attract more events and boost local tourism.

~ It would prevent adding to the tax burden carried by local property taxpayers, since out-of-town guests’ would be helping to pay for necessary repairs/improvements.

The next session of the Texas Legislature – the 89th session of the Texas Senate and the Texas House of Representatives – will run January 14-June 2, 2025.