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SMITHVILLE — Several Smithville homes have joined a recent national trend and become quick vacation spots as shortterm rentals (STRs), and City Council this month approved two zoning changes to make sure they pay their dues.
The council voted Dec. 8 to revise its STR regulations so proprietors must be up to date on property taxes and the city’s hotel occupancy tax (HOT) to continue operating. Planning and Zoning Commission member Caroline Noya estimated around 69% of the city’s current STR operators are not registered or paying HOT taxes.
“It’s not fair to the (renters) that are compliant to allow the non-compliant ones to continue operating,” Noya said.
The commission was asked by the city earlier this year to start looking at certain ordinances that applied to zoning, including rentals. According to Noya, surrounding communities have also begun to make amendments or legislation regarding STRs, citing concerns with neighborhood disruptions, safety and affordability.
According to Planning and Zoning, some local homebuyers have allegedly purchased residences primarily to run as STRs.
The commission unanimously recommended approval to help manage rental registration and provide enforcement when proprietors are not in compliance.
“This (amendment) will basically give us more teeth to do something about those not in compliance right now,” Noya said.
With the move, the city would be able to contact Vrbo, AirBnB and other online rental sites to inform them a property cannot be listed when going against Smithville’s regulations.
Councilman Brandon Dunham expressed concern the ordinance was specifically related to hotel occupancy tax collection, but city attorney Ryan Henry denied this.
“This change lets you tell the internet platforms to stop using them. That’s where the pressure comes in because (property owners) can’t list (their properties) on the internet platforms,” Henry said. “That’s different than enforcement mechanisms under the HOT tax.”
