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City auditor outlines STR/hotel audit findings; council weighs extending audits and reallocating workplan
Summary
City auditors reported recent hotel and short-term rental (STR) audits identified substantial unpaid hotel occupancy tax revenue; auditors recommended expanding audit work this year, while council discussed staffing, costs and tradeoffs with other planned audits.
City auditor Glenn (Galveston City Auditor) briefed the council on ongoing hot-tax and short-term rental (STR) audit work on Feb. 27, reporting that auditors had identified unpaid hot tax and penalties from hotel and STR properties and discussing resource implications of expanding the audits.
Gary (assistant auditor) told council the audit of hotels and STRs yielded estimated additional revenue with penalties — roughly $115,000 for several hotels and about $250,000 from a sample of 45 STRs — though precise collection and net gain hinge on costs and reimbursement agreements. Auditors said audit work has been more time-consuming than estimated; hotel audits cost the city roughly $5,000 each to complete…
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