Lodging Operators and Occupancy Tax

The City of Kerrville has announced that all lodging operators within the City of Kerrville and the Extraterritorial Jurisdiction (ETJ), including short-term rentals (STR’S), are required to collect, report, and remit occupancy tax as outlined by the State of Texas and the City of Kerrville.  On September 27, 2022, the city council adopted ordinance 2022-28 amending the city’s Zoning Code Land Use Table outlining which zoning districts short-term rentals are permitted to operate.  The zoning districts that permit short-term rentals are limited to R-1A, R-3, RT, DAC, and MU.

Recently, the city council created an ad-hoc committee, made up of a group of citizens including STR owners, to make recommendations to the council regarding STR regulations and compliance.  On December 13, the city council adopted ordinance 2022-30, which created Chapter 80 within the municipal code requiring permitting and outlining certain rules regarding the operation of short-term rentals.

All short-term rentals are now required to apply for an annual permit for operation within the city limits and renew the permit annually.  Short-term rental operators can begin registering for their annual permit starting on January 3, 2023.  The initial registration fee will be $100.

For additional information visit kerrvilletx.org, or call (866) 240-3665.