🎯 STRisker: Bulletin - El Paso, TX

City Council Extends Hotel Occupancy Tax to Short‑Term Rentals

Photo by visitelpaso.com

The El Paso City Council has unanimously approved a new ordinance requiring short‑term vacation rental operators to collect the city’s 17% hotel occupancy tax (HOT) from guests.

The measure is expected to generate an additional $3.5 million annually to support tourism‑related investments.

Short‑term rentals — defined as residential properties, apartments, condominiums, or accessory dwellings rented for fewer than 30 consecutive days — will now be treated like hotels and motels under the city’s tax structure.

The revenue, restricted by state law, will fund improvements to the Judson F. William Convention Center, arts and cultural programs, and debt payments for the city‑owned Downtown ballpark. Collection will begin no earlier than 90 days and no later than 180 days after adoption, following a public outreach campaign.

🎤 Community Feedback

Local Airbnb host and business owner Isaac Martinez told ABC‑7 he was initially concerned about the ordinance but later realized the tax would be applied directly to guests, not owners. “Between my wife and me, our main way of running our business is to be servant‑led, to be servant to our guests,” Martinez said.

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Martinez explained that he and his wife started their STR business to help other families earn supplemental income. Their company assists homeowners with property management, cleaning, and guest communication. He reassured fellow hosts that the ordinance should not reduce bookings: “The owners or hosts that are running their businesses like an actual business, I don’t feel like there’s going to be any big problem.”

He added that guests often choose STRs for amenities hotels cannot provide, such as space for family gatherings. “A lot of these guests are looking for a more comfortable stay somewhere they could host family reunions, lunches, or dinners,” Martinez said.

🏠 Housing & Enforcement

City officials said the tax will be collected through partnerships with STR platforms like Airbnb and Vrbo, ensuring compliance and reducing administrative burdens on hosts.

Martinez emphasized that the ordinance creates a level playing field: “Everything’s going to be on an even playing field, with the hotels and other hosts.” He encouraged STR operators to view the tax as an opportunity to improve their properties and attract the right guests.

✈️ Tourism & Economic Impact

The city anticipates that the new revenue will strengthen El Paso’s tourism infrastructure. Martinez noted that major events such as concerts by Coldplay or BTS bring visitors who often prefer STRs over hotels.

“More than anything, I think these taxes, once implemented, will be a benefit to us because we’re getting more bookings and now we’re able to charge a better price for our homes and also be competitive with hotels and motels,” he said.

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📌 Regional Context

El Paso joins other Texas cities in extending hotel taxes to STRs. Across the state, municipalities have sought to capture revenue from the booming STR market while addressing fairness concerns.

By integrating STRs into the existing tax framework, El Paso ensures that hotels and STRs alike contribute to tourism promotion and cultural investments.

➡️ Looking Ahead

The ordinance will take effect within six months, with outreach to educate STR operators and guests. City leaders say the measure is a long‑overdue step to align El Paso’s hospitality industry with state law and regional practices.

For hosts like Martinez, the focus remains on improving guest experiences. “Instead of trying to see this as a negative, we should definitely look at it as an opportunity to become better hosts,” he said.

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