We received letter from city of Frisco, TX, that we have to get a permit for the short term rental

[Elea0]

Hi Super hosts!!

We received letter from city of Frisco, Texas  that we have to get a permit for the short term rental.

I have a few questions regarding the event:

1. Have you received this kind of letter? 

2. Is it necessary to register and optain the permit?  It says yearly fee is a $300.

3. How much tax will be charged? We do reports a tax as a rental income but concern how expensive

is short term rental tax will be?

4. Does any host know about Hamari Platform? 

[Mike-And-Jane0]

@Elea0 if you read the ordinance it says:

Short-Term Rental (STR) —A dwelling that is: (a) used or designed to be used as the home of a person, family or household, including a single-family dwelling, garage apartment, guest house or a unit in a multi-unit building, including an apartment, condominium, cooperative or timeshare; and (b) rented wholly or partly for a fee and for a period of less than thirty (30) consecutive days. The term "Short- Term Rentar does not include a premises that is used for a nonresidential purpose, including an educational, health care, retail, restaurant, banquet space or event center purpose or another similar use; a bed-and-breakfast as defined in the City's Zoning Ordinance; or a hotel.

The key phrase is highlighted in bold above so renting a single family 'partly' for a fee does seem to cover your situation.

[Helen3]

1. if you're local government says you need a permit then you are likely to need one. Did you not check your local government website for guidance on STRs before starting? @Elea0 

2. I don't know taxes work in your country but you are likely to have to pay tax. You could speak to a local accountant or check your government tax office site for details and allowable expenses.

[Renee291]

 My My Airbnb is in Cincinnati Ohio. The city of Cincinnati has an ordinance regarding short term rentals. I must apply for a permit every 3 years. The permit fee is $250.. Exercise tax is also collected by the city on short term rentals. This tax is 7%. Here, airbnb collects that excise tax from the guest and pays it to the city on my behalf. I  must still file quarterly reports which I download from the Airbnb platform. If any stays are over 28 days, which under this ordinance is not a short term stay, no excise tax is due.

[Renee291]

Here's a link where you can get more info on this. Check with Airbnb and see if they are considering an agreement with the city to collect taxes on your behalf. That makes things so much easier. 

http://www.friscotexas.gov/1759/Short-Term-Rentals

[Manuel63]

@Elea0 We are now in mid 2023 and  I got the letter the same letter this week and says I have 20 days to bring the place up-to-code, register it, pay the $300, provide guests (I rent only a room) with a brochure on safety information about evacuation and extinguisher locations . This is the first time I heard of this.

That's not a biggie, the issue is that also I need to start to pay a 7% hotel rate every month, but it can' be paid online, I have to submit physical copies of the ABNB receipts to the city. with a check  I need to mail this form every month even if I had no income from the room. Uhm.. Ok the fact that nothing can't be done online is a bit annoying to me.

Even when other border cities like Plano TX McKinney TX and Irving allow ABN to collect the 7% taxes for the hosts, seems a couple of cities like Frisco and Austin do not. I am thinking seriously about quitting this business since apparently that's what the want from us.

How onerous was this for others in the same boat?

Thanks for your comments

[TNT-Vacation-Rentals0]

Hi Manuel63,

Thank you for your patience! I know your request was from a year ago, and you might have found the answer by now, but if not, I’d love to help clarify things for you.

In Texas, the regulations regarding short-term rentals (STRs) aren’t new, but many municipalities have started to enforce them more closely, especially with the rise of STRs during COVID. Specifically in the DFW area, these requirements are becoming more common. The good news is that Airbnb will submit the necessary documentation on your behalf, making the process easier for you!

I apologize for the delay in getting back to you, and if this issue has already been resolved, that’s great to hear! I’m here in Frisco, TX, so if you have any more questions or need further assistance, please don’t hesitate to reach out.

Best,

Troy

[TNT-Vacation-Rentals0]

YES, you have to register with the City of Frisco.  Taxes are mandatory for 6% for the State of Texas and 7% for the City of Frisco.  You can have Airbnb pay these automatically so you don't have to worry about it.  

I'm not familiar with the "Hamari Platform" but I am located in Frisco and manage several properties in the area.  If you ever have any questions or need assistance, I am happy to help.

Troy