Posting Language
Title
Approve an ordinance repealing and replacing City Code Chapter 4-23 to regulate short-term rental owners, operators, and platforms, creating offenses, and establishing penalties. Funding: This item has no impact on expenditures.
De
Lead Department
Development Services Department.
Fiscal Note
A fiscal note is attached.
This item has no impact on expenditures. However, this item does impact potential revenue for Fiscal Year 2027 as no renewal licenses would be issued in that fiscal year. The drop in revenue is estimated at $712,311, which is based on projections of the number of renewal licenses and planned licensing fee for Fiscal Year 2027. A similar but less substantial revenue reduction occurs in Fiscal Year 2029.
FY2026 PROPOSED
FY2027 PLANNED
FY2028 PROJECTED
FY2029 PROJECTED
FY2030 PROJECTED
Revenue
$ 1,304,911
$ 592,599
$ 1,524,266
$ 1,136,665
$ 1,780,495
Year-on-year Variance
$ (712,311)
$ 931,667
$ (387,601)
$ 643,830
Prior Council Action:
February 27, 2025 - Council approved Ordinance No. 20250227-040, amending City Code Title 4 to add short-term rental-related regulations that apply to short-term rental owners and operators, creating offenses, and establishing penalties.
December 7, 2023 - Council approved Ordinance No. 20231207-001, Part 20, directing the Manager to continue working on a proposal to regulate short-term rentals with particular focus on the changes adopted by this ordinance and to bring back the proposed holistic changes when they are ready.
December 8, 2022 - Council approved Resolution No. 20221208-064 directing the Manager to prepare an amendment to City Code that makes it unlawful for a person to collect or receive a fee from unlicensed short-term rental operators.
For More Information:
Daniel Word, Assistant Director, DSD, Daniel.Word@austintexas.gov or (512) 974-6559; Michael Harrington, Division Manager, DSD, Michael.Harrington@austintexas.gov or (512) 974-6460.
Additional Backup Information:
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