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City Council tackled growing concerns over short-term rental compliance and hotel tax rates during its Feb. 4 meeting, revealing challenges in monitoring and regulating the city's expanding rental market.
Code Enforcement Manager Christina Raemhil reported 171 active short-term rental units, with only 60.8 percent of properties currently identified through the city's third-party monitoring system. Of those tracked, 24 properties were found in violation of city ordinances, compared to 33 in compliance.
Councilmember Tina Bennett-Burton, District 2, proposed raising the hotel-motel tax rate to 9 percent to match neighboring Dallas and Irving. However, Economic Development Director Perla Tavera cautioned that such an increase would affect the city's agreement with Southwest Airlines.
"We need to cover our costs, and then some," said Councilmember Richard Jackson, District 4, highlighting the strain on city resources. Jackson suggested increasing the current $120 annual permit fee for short-term rentals to offset monitoring expenses.
Councilmember Roger Neal emphasized the importance of honoring existing agreements with Southwest Airlines while supporting potential fee increases.
The council will await legal research from City Attorney Whitt Wyatt before making any decisions on implementing separate tax rates for hotels and short-term rentals.
