The City of El Paso will start collecting Hotel Occupancy Taxes on short-term rental properties to support tourism investments. The tax is expected to generate an estimated $3.5 million annually, according to the city.
What are Short-Term Rentals?
A short-term rental is usually a residential dwelling unit, apartment, condo rented to overnight guests for less than 30 days, the city said. They commonly operate through platforms like Airbnb and VRBO.
Revenue generated through the tax is restricted by Texas law and can only be used for tourism-related purposes, such as promotion and hotel industry, according to the city.
HOT collections will start no earlier than 90 days or later than 180 days after adoption, the city said.
City Representative Art Fierro said, “We recognize that many short-term rental operators are local residents and small business owners who have invested in their properties and are working to generate additional income.”
City Rep. Chris Canales said collecting the tax will “ensure that El Paso has the resources we need to continue to improve the experiences of visitors and residents.”
The city also said approval for HOT on short-term rentals comes as demand for accommodations grow. It said Airbnb revenue alone is expected to reach $23.7 million in 2026.
How Will the Tax be Used?
HOT from short-term rentals can support tourism-related services, according to the city.
Original reporting: El Paso News (HLL/CB) — read the source article.
