Island cracks down on rental taxes: City to begin monitoring compliance

SOUTHPADREISLAND — There are some “cheaters” on the Island, and they apparently owe the city some money.

“We are leaving dollars on the table,” said Elena Jones, a resident and property manager. “I mean lots of dollars.”

This week, the City Council agreed to establish a permanent three-member “sub-committee” to establish policies to closely monitor and enforce the short-term rental ordinance.

It was intended to ensure owners of rental property pay hotel occupancy taxes.

The enforcement of that ordinance started in July of 2015.

Rental owners should be collecting 14.5 percent hotel tax on behalf of the state and the city. The city should receive 8.5 percent and the state 6 percent.

Texas Comptroller Glenn Hager says nobody wants to pay taxes and those who don’t are not only cheating the state, they also are cheating their community.

Jones said there are thousands of short-term rental condominiums on the Island.

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