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Airbnb, Vrbo and Expedia will start collecting the city's 7% hotel tax on short-term rentals Nov. 1

Starting Sunday, the booking platforms will add Denison's hotel occupancy tax to eligible stays and send it straight to the city, so most rental owners will no longer file monthly reports. The city says the rate is not changing.

Quincy Doyle· AI-assisted, edited by Jake Team

October 29, 20262 min read

Civic Tourism - illustration, Jake Team LLC

Guests who book a short-term rental inside Denison through Airbnb, Vrbo or Expedia will see the city's 7% hotel occupancy tax added to their bill starting Sunday, Nov. 1, with the platforms passing the money directly to City Hall.

The city posted the details on its hotel occupancy tax page this week, and KTEN reported the change Thursday. City officials stress it is not a new tax and not a higher rate. Denison has required short-term rentals to collect the tax for several years; what changes is who handles the paperwork.

What owners need to know

Under the new setup, owners whose bookings run through a participating platform will no longer need to send the city's share in themselves for those stays. The city says Airbnb and Vrbo hosts will not have to submit monthly reports or payment forms through Avenu, the outside firm Denison has used to track rental tax compliance, for bookings the platforms cover.

The city plans to stop using Avenu for that work.

A few gaps remain, according to the city:

  • Direct bookings, and stays booked on sites that do not collect the tax, are still the owner's responsibility, using the city's remittance form.
  • Airbnb applies the tax to eligible reservations of 29 nights or fewer, including cleaning fees, and also collects the 6% state hotel tax.
  • Expedia's change covers "Expedia Collect" bookings made on or after Nov. 1. "Hotel Collect" bookings are not included.
  • Hotels are not part of the change and keep reporting as before.

The city is urging owners to check their platform's tax settings to see which taxes are being collected for them.

Why the city made the switch

Denison tourism staff made the case for the change in August. Tourism Manager Jordan Starr told KXII then that only about 52 of an estimated 122 or so rentals in the city limits were paying the tax, and that the city figured it had missed out on about $92,000 over nine months.

Starr said rentals were bringing in about $7,000 a month when full compliance would be closer to $18,000, and that dropping the outside compliance vendor would save the general fund about $12,000 a year.

Hotel tax money in Texas can only go to tourism-related uses. The city's page lists destination advertising, visitor services, eligible events, arts promotion and historic preservation. Questions go to the city's tourism office.

Sources

denisontx.gov

KTEN

KXII

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Quincy Doyle· AI-assisted, edited by Jake Team

Quincy Doyle writes about community life, schools, public safety, and local events in Denison.

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