Texas House Bill HB3779

Texas 2019 - 86th Regular

Caption

Relating to the collection of state, municipal, and county hotel occupancy taxes by a short-term rental marketplace.

Impact

The implications of HB3779 will be significant for the state's tax framework, particularly in the realm of short-term rentals. By obligating short-term rental marketplaces to collect and remit taxes, the bill seeks to eliminate confusion and ensure that municipalities receive their fair share of tax revenue. This could lead to increased funding for local services, such as infrastructure and public safety, which are often utilized by short-term rental guests. The shift may also simplify the process for hosts, who will no longer be responsible for tax collection on their rentals.

Summary

House Bill 3779 aims to streamline the collection of state, municipal, and county hotel occupancy taxes by requiring short-term rental marketplaces to actively collect and remit these taxes on behalf of hosts. The bill defines terms such as 'booking charge' and establishes the responsibilities of short-term rental marketplaces in relation to tax collection. It emphasizes the role of these platforms in not only collecting taxes but also in handling compliance with municipal tax ordinances, thereby centralizing the process and potentially improving revenue collection for local governments.

Contention

Arguments surrounding HB3779 mainly revolve around the efficacy and fairness of placing tax collection responsibilities on short-term rental marketplaces. Proponents argue that this change will enhance compliance and fairness in tax collection, ensuring that all short-term rentals contribute equally regardless of the host's knowledge or inclination to manage the tax obligations. Opponents, however, may voice concerns about the additional administrative burdens placed on these marketplaces and whether this will increase costs for consumers or limit market participation by smaller hosts.