Overview: Are Short-Term Rentals Allowed in Jacksonville, TX?

Yes, short-term rentals are explicitly allowed in Jacksonville, Texas. The city recognizes and regulates short-term rentals as lodging establishments subject to hotel occupancy tax collection and reporting. Properties rented for less than 30 days per guest, including Airbnb and VRBO rentals, must comply with the same hotel occupancy tax requirements that apply to traditional hotels and motels.

How to Start a Short-Term Rental Business in Jacksonville, TX

Step 1: Registration Requirement

All hotels and short-term rentals within Jacksonville city limits must register with the City using the provided registration form. There is no fee for registration.

Step 2: Tax Compliance Setup

1. Understand Tax Obligations: You must collect both state and local hotel occupancy taxes from guests renting rooms or spaces costing $15 or more per day for state taxes and $2 or more per day for local taxes.

2. Set Up Tax Collection Systems: Implement systems to collect the combined rate of 15% (6% state + 9% local) from each guest staying less than 30 days.

Step 3: Ongoing Compliance

• File monthly tax returns by the 20th day of each month following the reporting period
• Maintain records of all guest stays and tax collections
• Monitor guest stays to identify when the 30-day permanent resident threshold is reached

Required Documents, Permits, Licenses, and Guidelines

Registration

• Hotel/Short-Term Rental Registration Form (no fee)
• Must be completed for all properties within Jacksonville city limits

Tax Documentation

• Hotel Occupancy Tax Return: Monthly filing required
• Payment Processing: Tax payments can be made through the Municipal Online Payments portal

Record Keeping Requirements

• Guest registration records showing dates of stay and rates charged
• Tax collection documentation
• Documentation supporting permanent resident exceptions

Specific Regulations for Short-Term Rentals

Tax Rates and Collection

• State Hotel Occupancy Tax: 6%
• Local Hotel Occupancy Tax: 9%
• Total Combined Rate: 15%
• Venue Tax: Additional 2% (approved by voters in November 2022) dedicated to supporting the Cherokee Ranch Golf Course Civic Center project

Due Date and Filing

• Monthly Due Date: 20th day of the month following the reporting period
• Example: April 20 for March activity
• Filing Frequency: Monthly submissions required

Permanent Resident Exceptions

No tax shall be collected from guests who become permanent residents. A guest becomes a permanent resident under the following conditions:

• After 30 continuous days' occupancy, OR
• Upon providing written notice of intent to occupy for longer than 30 continuous days and actually occupying for that period

Important Notes:

• Guests who express intent but fail to stay 30 continuous days are not considered permanent residents and remain subject to tax
• Guests who provide notice and actually stay the full period are excepted from tax as of the notice date

Definitions

The city defines a "hotel" as any structure containing guest rooms occupied or intended for occupancy by paying guests, including:

• Hotels, motels, inns
• Tourist houses, tourist courts
• Lodging houses, rooming houses
• Bed and breakfast establishments

This definition explicitly includes short-term rental platforms like Airbnb and VRBO for properties rented less than 30 days.

Legal Framework

• Governed by Jacksonville City Code of Ordinances, Chapter 18, Article II
• Aligns with Texas state requirements for hotel occupancy tax collection
• State law requires local governments to annually report hotel occupancy tax rates and revenue

Contact Information for Local Authority

Primary Contact

Jacksonville City Hall

• Address: 315 S Ragsdale Street, Jacksonville, TX 75766
• Phone: 903-586-3510

Department

Finance Department

• Responsible for hotel occupancy tax administration
• Processes registrations and tax payments
• Provides compliance guidance

Online Resources

• Payment Portal: Municipal Online Payments (under Miscellaneous Payments)
• City Website: www.jacksonvilletx.org
• Contact Directory: Available through the city's main website

Source Links

Primary Sources

1. Jacksonville TX Hotel Occupancy Tax Page: www.jacksonvilletx.org/648/Hotel-Occupancy-Tax
2. City Code of Ordinances: library.municode.com/tx/jacksonville/codes/code_of_ordinances?nodeId=PTIITHCO_CH18TA_ARTIIHOMOOCTA
3. Registration Form: na4.documents.adobe.com/public/esignWidget?wid=CBFCIBAA3AAABLblqZhAtI8RB0L4RfIsnA5v6nOkjpVoRkY0xfvQmFH5k16ogkB6iG2xnesRjj6vPiBOP5XM*
4. Payment Portal: www.municipalonlinepayments.com/jacksonvilletx
5. Traditional Finances: www.jacksonvilletx.org/356/Traditional-Finances

Regulatory Framework

• Texas State Hotel Occupancy Tax: Chapter 156, Texas Tax Code
• Municode Online Ordinances: library.municode.com/index.aspx?clientId=15071

Compliance Checklist for Investors

1. Pre-Operation

   • [ ] Complete city registration form
   • [ ] Set up tax collection systems (15% total rate)
   • [ ] Establish record-keeping procedures
   • [ ] Verify property is within city limits

2. Ongoing Operations

   • [ ] Collect hotel occupancy tax from all qualifying stays
   • [ ] File monthly tax returns by the 20th
   • [ ] Monitor guest stays for permanent resident exceptions
   • [ ] Maintain comprehensive guest and financial records

3. Key Metrics to Track

   • Guest check-in/check-out dates
   • Daily rates charged
   • Total occupancy days per guest
   • Tax collections and remittances

Important Reminder: This guide provides specific information for Jacksonville, Texas. Properties outside city limits may be subject to different regulations. Always verify your specific property's jurisdiction and consult with local authorities for the most current requirements.