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Laredo tourism staff: hotel-motel tax collections on par with projections; Airbnb rentals not remitting tax

June 07, 2025 | Laredo, Webb County, Texas


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Laredo tourism staff: hotel-motel tax collections on par with projections; Airbnb rentals not remitting tax
LAREDO, Texas — Tourism staff told the Laredo Tourism Board that year-to-date hotel-motel tax collections are “on par” with projections, but short-term rentals do not currently remit hotel-motel tax and may complicate comparisons with prior years.

The board heard the financial report during its monthly meeting; a staff presenter said the organization is “pretty much in the last phase of closing our budget” and that collections for the fiscal year are generally tracking to plan. The presenter added, “As of right now, they don't. The Airbnb doesn't,” when asked whether Airbnb stays contribute to hotel-motel tax receipts, and clarified the CVB receives occupancy information from short-term platforms but not the tax revenue.

Board members raised concerns about event-related swings in the hotel-motel tax. One member referenced social media criticism that the Society of Martha Washington historically produced substantial hotel revenue; staff said weather and the pandemic-related cancellations had reduced receipts this year and in past years. Board members asked staff to return with additional data comparing current-year collections, average daily rate (ADR) and occupancy to prior years so the board can isolate the effect of specific events such as the Sister Cities Festival.

Staff pointed the board to the monthly report pages for ADR and occupancy (noted in the packet as pages 13–15) and said a fuller collections picture — especially for events that occur on both U.S. and Mexican sides of the border — will likely be clearer by August or September collections reporting. Staff also noted that some visitor counts reflect organized groups (for example, military or National Guard units) that do not generate taxable overnight stays, which can affect year-to-year comparisons.

The board did not take formal action on new revenue policies at the meeting; members directed staff to prepare comparative data on ADR, occupancy and event impacts for a future meeting so the board can better respond to public questions about event-related hotel-motel tax receipts.

The board approved the minutes by voice vote earlier in the meeting; the motion, mover and second were not recorded on the transcript.

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Scribe from Workplace AI
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