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

Yes, short-term rentals are explicitly allowed in Borger, Texas. The city recognizes short-term rentals as legitimate lodging facilities subject to hotel occupancy tax regulations. According to Article 11.04 of the Borger Municipal Code, the term "hotel" explicitly includes "a short-term rental in which the rental of all or part of a residential property to a person who is not a permanent resident under Section 156.101, Texas Tax Code, as amended." This covers platforms like Airbnb, Vrbo, and other vacation rental services.

How to Start a Short-Term Rental Business in Borger

Initial Setup Process

1. Property Compliance Assessment

   • Ensure your property meets local building and safety standards
   • Verify zoning compliance through the city's Unified Land Development Ordinance (ULDO)
   • Consider fire safety inspection requirements

2. Tax Registration

   • Register with the City of Borger for hotel occupancy tax collection
   • Obtain necessary reporting forms from the city
   • Establish procedures for collecting state and local taxes

3. Operational Setup

   • Implement tax collection systems for guest billing
   • Set up monthly reporting and remittance processes
   • Create documentation systems for exemption certificates

Required Documents, Permits, and Licenses

Tax-Related Documentation

• Hotel Occupancy Tax Report Form - Required for monthly filing (Form available through city documents)
• Texas Comptroller Form 12-100 - State reporting form certification required
• Exemption Certificates - For qualifying governmental entities and other exempt categories

Business Compliance

• Building Permits - May be required depending on property modifications (see Building Permits & Fees)
• Fire Safety Inspections - May be required before operation
• Business Registration - Check local business licensing requirements

Forms and Documents Available:

• Hotel and Venue Tax Information document
• Hotel Occupancy Tax Report Form
• Building Permits & Fees information
• Fire Safety Inspections requirements

Specific Regulations for Short-Term Rentals

Hotel Occupancy Tax Structure

State Requirements (6%)

• All short-term rentals must collect 6% state hotel occupancy tax
• Applies to accommodations costing $15 or more per day
• Must be reported to Texas Comptroller on Form 12-100

City of Borger Requirements (7%)

• Local Hotel Tax Rate: 7% of the room cost
• Minimum Rate: Applies to rooms costing $2 or more per day
• Collection Requirement: Hosts must collect and remit local tax
• Monthly Filing: Report due on the 20th day of the month following the tax period

Venue Tax (2%)

• Additional Venue Tax: 2% for the Aluminum Dome Venue Project
• Total Combined Rate: 15% (6% state + 7% city + 2% venue)
• Voting Approval: Imposed by voters on November 3, 2020

Reporting and Remittance Requirements

Monthly Filing Deadlines

• Due Date: 20th day of the month following the tax period
• Extension Rules: If the 20th falls on a weekend or legal holiday, extended to the next business day
• Late Penalties: 5% penalty if not filed by the 31st day after due date, plus additional 5% penalty

Required Information for Monthly Reports

• Total consideration paid for all occupancies
• Amount of 7% hotel occupancy tax collected
• Amount of 2% venue tax collected
• Certification that information matches Texas Comptroller Form 12-100
• Any additional information required by the city or collection agency

Billing and Disclosure Requirements

Each guest receipt must contain the following statement in a conspicuous location:

THE APPLICABLE HOTEL OCCUPANCY TAX RATE COLLECTED BY THIS HOTEL FROM THE CUSTOMER FOR THE STATE OF TEXAS IS 6%. THE APPLICABLE HOTEL OCCUPANCY TAX RATE COLLECTED FROM THE CUSTOMER BY THIS HOTEL, LOCATED WITHIN THE CITY LIMITS OF THE CITY OF BORGER, TEXAS, IS 9%. THE APPLICABLE HOTEL OCCUPANCY TAX RATE COLLECTED BY THIS HOTEL FROM THE CUSTOMER FOR HUTCHINSON COUNTY, TEXAS IS 0%.

Exemptions and Special Cases

Exempt Categories

• U.S. Governmental Entities - Completely exempt from local taxes
• Texas State Governmental Entities - Must pay but entitled to refund
• Certain Affiliated Persons - Pay tax but associated state entity can claim refund
• Specific Texas Tax Code Categories - Various exemptions under Section 156.103

Refund Process

• Governmental entities can file quarterly refund claims
• Must use forms prescribed by the State Comptroller
• Requires proper documentation and certification

Enforcement and Penalties

Financial Penalties

• Initial Late Penalty: 5% of tax due
• Extended Late Penalty: Additional 5% if not filed by 31st day
• Interest: 10% per year starting 60 days after due date
• Additional Costs: City entitled to reasonable attorneys' fees and collection costs

Enforcement Actions

• Injunctive Relief: City can sue to enjoin operation until taxes are paid
• Business Closure: Operation can be stopped until compliance is achieved
• Property Sale Issues: Withholding requirements during property transfers

Platform Compliance

Third-Party Platform Limitations

• Airbnb and Vrbo: Do NOT automatically remit taxes to Borger
• Host Responsibility: Local hosts must collect and submit all applicable taxes
• Platform Communication: Hosts should inform platforms of their tax collection obligations

Contact Information for Local Authority

Primary Contact

City of Borger - City Hall

• Address: 600 N Main Street, PO Box 5250, Borger, TX 79008-5250
• Phone: 806-273-0900
• Website: www.borgertx.gov/

Department-Specific Contacts

• Building Permits & Fees: Contact City Hall for Building Department
• Fire Safety Inspections: Contact City Hall for Fire Marshal
• Tax Collection Questions: City Manager's office handles hotel occupancy tax

Online Resources

• Hotel Occupancy Tax Information: www.borgertx.gov/485/Hotel-Occupancy-Tax
• Building Permits & Fees: www.borgertx.gov/156/Permits-Fees
• Fire Safety Inspections: www.borgertx.gov/396/Inspections
• Code of Ordinances: Available through online municipal code system

Additional Resources

• Business Support: Local Business section on city website
• Economic Development: Borger Economic Development Corporation
• Chamber of Commerce: Local business networking and support

Source Links

Primary Regulatory Sources

1. Hotel Occupancy Tax Information: www.borgertx.gov/485/Hotel-Occupancy-Tax
2. Hotel and Venue Tax Information Document: borgertx.gov/DocumentCenter/View/1080/Hotel-and-Venue-Tax-Information
3. Hotel Occupancy Tax Report Form: borgertx.gov/DocumentCenter/View/1081/Hotel-Occupancy-Tax-Report-Form
4. Code of Ordinances - ULDO (Overnight Accommodations): online.encodeplus.com/regs/borger-tx/doc-viewer.aspx?secid=3595
5. Code of Ordinances - Venue Tax Article: online.encodeplus.com/regs/borger-tx/doc-viewer.aspx?secid=1958

Additional Business Resources

6. Building Permits & Fees: www.borgertx.gov/156/Permits-Fees
7. Fire Safety Inspections: www.borgertx.gov/396/Inspections
8. Local Business Resources: www.borgertx.gov/262/Local-Business
9. Unified Land Development Ordinance: www.borgertx.gov/489/Unified-Land-Development-Ordinance

State-Level Reference

10. Texas Hotel & Lodging Association STR Overview: texaslodging.com/short-term-rental-str-update-2018/

Important Note: This guide is based on the provided municipal documents and reflects current regulations as of the content provided. Short-term rental regulations can change frequently, and investors should verify current requirements with the City of Borger before proceeding with any STR investment or operation.