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Council discusses hotel-occupancy-tax collection from short-term rentals; staff estimates roughly $21,000 potential revenue
Summary
Council directed staff to pursue compliance options and asked the City Attorney to review neighboring ordinances after staff estimated short-term rentals could yield about $21,000 in annual HOT, separate from an estimated $36,000 from hotels.
The Dickinson City Council discussed mechanisms to collect hotel-occupancy tax (HOT) from short-term rentals (STRs) during the Feb. 24 meeting. Staff recognized growth of STRs within city limits and recommended defining STRs, establishing compliance and permitting mechanisms, and addressing nuisance and safety standards. Azavar, the City's auditing/collection vendor, was identified as a resource for STR compliance audits.
Staff estimated potential annual HOT of roughly $21,000 from STRs, separate from approximately $36,000 from traditional hotels; the figure was presented as an estimate subject to verification. Council directed staff to invite Azavar to present service options and costs at a future meeting and asked the City Attorney to review neighboring ordinances for best-practice models. Public commenter Anne Mart urged regulation, permitting, safety standards and liability coverage for waterfront rentals.
No ordinance or formal regulatory action was adopted at the meeting; staff follow-up and a vendor presentation were the next steps described in the minutes.
