Mayor Don McLaughlin said, “I’d identify the properties and if they don’t comply, cut their water and sewer off.”
Correction: The Uvalde Hesperian was informed of the following corrections:
Felix Castillo is the Director of Finance ; Everardo “Lalo” Zamora is a Councilmen for District 1
The article below has been corrected
by Michael Robinson | Uvalde Hesperian
Motel 6 may not be the only place in Uvalde leaving the light on for travelers coming for a short term stay in town. More and more local property owners are getting into the lodging business.
The City of Uvalde finds itself being left out in the cold by airbnb, Vrbo, and other popular apps which collect Hotel and Motel Occupancy Taxes or HOT Taxes for the State but not to local taxing authorities.
Approximately $80,000 dollars in uncollected HOT monies and are continuing to be generated by non traditional house and room rentals being offered through mobile apps like Aairbnb and Vrbo which automatically collect HOT Taxes due to the State of Texas but leave local taxing authorities own their own to identify and collect the percentage of tax due to them. According to City of Uvalde Finance Director Felix Castillo who presented a report on the issue at the Tuesday, October 24th Ivalde City Council meeting, the amount currently due to the City of Uvalde is estimated to be $80,000.
Felix Castillo speaking on the Hotel Occupancy Tax collections for short term rentals also referred to as STR’s, stated there is only one Bed and Breakfast currently registered and actively remitting HOT Taxes it collects to the City. He said that there are 22-23 others STRs the City is aware of and a few others the City may not be aware of.
Under the City’s current collection program, the City taxing authority has chosen not to go after back taxes accrued but as of September 1, 2023, the City is working to identify property owners operating STR;s being offered in town and getting them registered with the City.
According to Castro, HOT taxes are due on the 20th.
City of Uvalde Director, Planning & Community Development Susan Anderson said most short term rental properties are not following the City’s ordinances.
According to Anderson, AirB&B and VRBO and other online rental services collect state taxes but they do not collect local HOT Taxes.
The local HOT Tax is 7 percent.
“It is shocking to me that people opening a business don’t look into city ordinances,” Susan Anderson said.
According to Anderson, Local Short Term Rentals are located within the City/s residential areas contrasted with Hotels and Motels which have large signs located along U.S. Highway 90
Castillo told the City Council the City can choose to go after the back taxes owed if it decides to.
Anderson stated the ones that are out of compliance have never come in.
“Since May 24th we’ve had a bunch more STR’s pop up.” Anderson said.
Councilman Everado “Lalo” Zamora said, “Can you imagine how much taxes we are losing?”
Castillo estimated the City has lost $80,000 to $90,000 in HOT Taxes owed,
“We have the tools to do it, we are going to be on top of them to get into compliance,”Castillo said.
Mayor Don McLaughlin said, “I’d identify the properties and if they don’t comply, cut their water and sewer off.”
McLaughlin’s comment was met with some laughter from council members.
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