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

Yes, short-term rentals are explicitly allowed in Amarillo, Texas. As of 2019, short-term rentals and bed and breakfasts can be classified as hotels within Amarillo under Texas state law, provided they comply with all applicable regulations, tax obligations, and zoning requirements.

How to Start a Short-Term Rental Business in Amarillo

Step 1: Understand Zoning Requirements

Before purchasing or listing a property, verify that short-term rentals are permitted in the desired zoning district. According to the Amarillo Zoning Ordinance:

Primary Zoning Considerations:

• Bed and Breakfast Inns are specifically defined and permitted in certain districts as a residential use
• Hotels or Motels require a minimum of 6 individual guest rooms and are permitted in commercial and industrial districts
• Short-term rentals must comply with all zoning regulations for the district in which they're located

Step 2: Tax Registration and Compliance

All short-term rentals must register with the City of Amarillo's Finance Department and collect applicable hotel occupancy taxes.

Tax Obligations:

• State Hotel Occupancy Tax: 6%
• City Hotel Occupancy Tax: 7%
• Venue District Tax: 2%
• Total Hotel Occupancy Tax Rate: 15% of the room rate

Step 3: Ongoing Compliance

• Monitor occupancy thresholds (stays exceeding 30 days are exempt from HOT tax)
• Maintain records for tax reporting
• Stay updated on any changes to municipal regulations

Required Documents, Permits, Licenses, and Guidelines

Municipal Registration

• Hotel Occupancy Tax Registration with City of Amarillo Finance Department
• Contact the Finance Department for specific registration forms and requirements

Compliance Documentation

• Business Registration (if operating as a business entity)
• Property Tax Records demonstrating legal ownership
• Proof of Insurance adequate for short-term rental operations
• Tax Collection Records showing remittance of all applicable hotel occupancy taxes

Operational Guidelines

• Length of Stay Records: Implement systems to track guest stays over 30 days (exempt from HOT tax)
• Tax Remittance Procedures: Establish monthly or quarterly tax payment schedules
• Communication Protocol: Provide contact information to guests and neighbors

Specific Regulations: City, County, and State Level

City of Amarillo Regulations

Tax Collection Requirements:

• All short-term rentals must collect and remit hotel occupancy taxes
• Registration with Finance Department is mandatory
• The city utilizes third-party vendors to reach out to short-term rental operators

Zoning Compliance:

• Short-term rentals must operate in accordance with zoning district regulations
• Bed and breakfast operations must comply with the specific definition and requirements
• Hotels and motels require commercial zoning approval

County Level

No specific Potter County short-term rental regulations were identified in the provided content.

State of Texas Regulations

Tax Obligations:

• 6% state hotel occupancy tax applies to all short-term rentals
• Stays exceeding 30 days are exempt from hotel occupancy tax

Legislative Context: The 85th and 86th Texas Legislatures addressed short-term rentals with bills preempting cities from regulating certain aspects of these rentals. Cities must navigate state preemption while addressing local concerns.

Contact Information for Local Authority

City of Amarillo

Finance Department - Hotel Occupancy Tax Division

• Phone: (806) 378-3000
• Address: City Hall, 1000 E. 3rd St., Amarillo, TX 79101
• Email: Contact through main Finance Department phone line
• Website: www.amarillo.gov/

Planning and Development Services

• Andrew Freeman, Director (referenced in news article)
• Phone: (806) 378-3000
• Email: planning@amarillo.gov

City Attorney's Office

• Leslie Spear-Schmidt, Senior Assistant City Attorney
• Phone: (806) 378-3000
• Email: leslie.schmidt@amarillo.gov

Source Links

1. City of Amarillo to outline tax responsibilities for short term rentals
2. Texas City Attorneys Association Presentation on STRs (2019)
3. Amarillo Zoning Ordinance

Important Note: This guide is based on available information from 2019-2024. Always verify current regulations with the City of Amarillo before making business decisions, as regulations and tax obligations may change. Consider consulting with local legal counsel familiar with Amarillo's municipal code for comprehensive compliance advice.