🎯 STRisker: Bulletin - McKinney, TX
Leveling the Playing Field: City Council Approved Expanded Hotel Tax to All STR Platforms
McKinney Expands Hotel Occupancy Tax to Include Vrbo and AirBnb
McKinney, Texas just closed a long-standing tax gap in its short-term rental (STR) market. On September 2, City Council members approved an amendment that officially allows the city to collect hotel occupancy taxes from Vrbo — a move that finally brings all short-term rental platforms under one umbrella.
Until now, only Airbnb listings and hotel stays were automatically contributing to McKinney’s 13% hotel occupancy tax. That revenue, split between the city (7%) and the state, helps fund local tourism initiatives and big-name events like the CJ Cup Byron Nelson golf tournament and the Texas Open pickleball tournament. With Vrbo now included, city officials expect a noticeable bump in funds used to promote McKinney as a premier travel destination.
“This new amendment really just levels the playing field,” said Sarah Nolting of Visit McKinney. “It ensures that every property — whether it’s a hotel, Airbnb, or Vrbo — pays the same fair share.”
McKinney’s STR scene has grown steadily, with over 300 active rentals generating around 47,000 stays in the last year. Those longer average stays compared to hotels signal that STRs are becoming a major part of the city’s tourism landscape.
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The push to tax Vrbo bookings wasn’t overnight. Visit McKinney’s Executive Director, Aaron Werner, noted that the city has been working for two years to figure out a seamless way to collect from Vrbo. Airbnb’s automatic collection made things easy on that front, but Vrbo required an update to the city’s ordinance language before payments could begin.
While officials don’t expect Vrbo collections to rival Airbnb’s — currently McKinney’s second-largest tax generator — the additional revenue strengthens McKinney’s tourism marketing efforts without burdening residents. It’s another example of how cities are adapting tax policies to keep pace with a changing lodging industry.
With the new rule now in effect, every short-term rental booking in McKinney — regardless of platform — will help boost local tourism, fund city events, and keep the playing field even for all operators.
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