Airbnb, other short-term rentals to contribute to El Paso hotel occupancy taxes

EL PASO, Texas (KVIA) -- The City of El Paso said it will start collecting Hotel Occupancy Taxes on short-term rental properties to support tourism investments. The tax is expected to generate an estimated $3.5 million annually, according to the city.

A short-term rental is usually a residential dwelling unit, apartment, condo rented to overnight guests for less than 30 days, the city said. They commonly operate through platforms like Airbnb and VRBO.

Revenue generated through the tax is restricted by Texas law and can only be used for tourism-related purposes, such as promotion and hotel industry, according to the city.

HOT collections will start no earlier than 90 days or later than 180 days after adoption, the city said.

“We recognize that many short-term rental operators are local residents and small business owners who have invested in their properties and are working to generate additional income,” said City Representative Art Fierro in a statement. “At the same time, this gives the City an opportunity to capture visitor-generated revenue that can be reinvested directly into tourism, arts, events, and infrastructure—helping strengthen our economy while reducing pressure on all local taxpayers.”

City Rep. Chris Canales said in the last 10 years, El Paso is the only large municipality in Texas that doesn't collect HOT on short-term rentals. He said collecting the tax will "ensure that El Paso has the resources we need to continue to improve the experiences of visitors and residents."

The city also said approval for HOT on short-term rentals comes as demand for accommodations grow. It said Airbnb revenue alone is expected to reach $23.7 million in 2026.

HOT from short-term rentals can support these services, according to the city:

• Maintaining and improving the Convention Center
• Maintenance and debt service related to Southwest University Park
• Funding local arts and cultural organizations
• Tourism-related facilities, programs and initiatives authorized under Texas law