The Port Arthur City Council on Jan. 14 approved an ordinance requiring short‑term rentals to register with the city and pay local hotel occupancy tax, voted to raise the council's routine/nonroutine agenda threshold to $100,000, and approved a slate of resolutions and contracts including the city's participation in the Texas opioid settlement.

The short‑term rental ordinance (PO 7302) requires short‑term rental operators to obtain a city permit, register properties and pay the city's 7% local hotel occupancy tax. Tammy Couture, executive director of the Port Authority Business and Convention Bureau, told the council she tracked about 95 listings on Airbnb and VRBO in November and estimated the city could collect between roughly $100,000 and $200,000 a year in local occupancy tax if the rentals are actively used. "If you take all of these 95 . . . and you estimate a 70% occupancy,
we would average about $200,000 in occupancy tax for the city," Couture said.

City staff explained an implementation plan that would include owner outreach, an online registration portal, coordination with platforms such as Airbnb and VRBO to pursue tax remittance agreements, and an enforcement approach that may use platform reports, third‑party scanning services and code enforcement. Staff proposed a target implementation date of May 1 to allow time for outreach and systems work. Council members asked about properties that operate off the major listing platforms; staff said third‑party services (named in discussion as "Rentalscape") and targeted code enforcement would be used to help identify unreported rentals.

Council also approved an ordinance amendment to define routine and nonroutine agenda items by raising the monetary threshold used to categorize items from $50,000 to $100,000. Councilman Donald Frank moved the change and it was seconded; the motion was approved by the council. City Attorney commentary during the discussion noted that state procurement thresholds are moving and that raising the local threshold to $100,000 would align with pending statewide changes.

Other items the council approved during the meeting include:
- PR 24058: Resolution authorizing participation in the Texas opioid settlement and use of funds for opioid‑related programs (approved).
- PR 24092: Contract with Impact Promotional Services, LLC for department uniforms, not to exceed $65,000 (approved).
- PR 24101: Engagement letter with Patillo, Brown & Hill, LLP to serve as independent auditor for FY2024, $120,000 (approved).
- PR 24102: Acceptance and appropriation of a Project Safe Neighborhood block grant in the amount of $91,000 (approved).
- PR 24104: Policy prohibiting installation or requiring removal of TikTok and certain other apps from city‑owned or leased devices to comply with Senate Bill 1893 (approved).
- PO 7305: Amendments to chapter 62 (weapons on city property) related to the new firearms training facility and associated policies (approved).
- PO 7306: Budget amendment increasing special police fund by $91,000 and health grant fund by $4,000 (approved).

Council members debated implementation costs and enforcement for the short‑term rental program. Councilman Doucette questioned whether collection and enforcement costs could consume a large share of the revenue and said, "I'm talking 50%." Staff replied that platforms sometimes collect taxes at no fee, and third‑party services and modest permit fees could reduce administrative burdens; they also noted the program yields two revenue streams — permit/application fees and hotel occupancy tax.

No significant amendments were made to the short‑term rental ordinance during the meeting. Staff said they would return to council with implementation plans and suggested interdepartmental coordination among code enforcement, planning, finance and the city's convention and visitors bureau.

Votes at a glance
- Motion to amend ordinance defining routine/nonroutine items to $100,000 (mover: Councilman Donald Frank; second: notated). Outcome: approved (motion passed; vote tally not specified in minutes).
- PR 24058 — Texas opioid settlement participation (mover: Councilman Kinlaw). Outcome: approved.
- PR 24092 — Uniforms contract not to exceed $65,000. Outcome: approved.
- PR 24101 — Auditor engagement for FY2024, $120,000. Outcome: approved.
- PR 24102 — Project Safe Neighborhoods grant, $91,000. Outcome: approved.
- PR 24104 — Prohibit TikTok on city devices per SB 1893. Outcome: approved.
- PO 7302 — Short‑term rental ordinance (registration, permit, local hotel tax). Outcome: approved.
- PO 7305 — Amendments on weapons and firearms training facility policies. Outcome: approved.
- PO 7306 — Budget amendment: special police fund +$91,000; health grant fund +$4,000. Outcome: approved.

What the council directed next
Staff was directed to develop and present an implementation plan for the short‑term rental ordinance, including outreach materials, a registration portal, coordination options with listing platforms and enforcement steps. Staff set a target of May 1 for full implementation but said outreach and systems work would continue in the interim.