In a formal recommendation to the mayor and City Council late Friday, the city departments that oversee zoning and code enforcement say they believe the best...
The code compliance and planning and urban design departments suggest keeping the new code regulations, but continue to allow short-term rentals to be zoned to operate everywhere in Dallas. They suggest the city code modifications can be used to impact where they can operate.
The city currently has no rules in place to penalize bad operators. Property owners are supposed to register with the city, but there are no consequences for not doing so. The owners are required to collect taxes from their guests, report monthly and pay the tax to the city. City Manager T.C. Broadnax and other top city department officials have been publicly warning council members and residents since April that the plan commission proposal would be difficult to enforce and may not offer the quick solution to shutting down problem rentals as hoped.
If an illegal or problem property continues operating as a short-term rental, the city would likely have to sue the property owner to get a judge’s order to shut them down. Interim City Attorney Tammy Palomino told the council in April that route typically takes 18 months to three years to complete.that the zoning component is important because it would clearly define where short-term rentals should be allowed in the city.
City Controller Sheri Kowalski said during a June 7 council meeting that Dallas has collected nearly $2 million in hotel occupancy taxes from registered operators from October 2022 to April 2023. She estimated the city could be losing out on more than $1 million a year from uncollected taxes from unregistered operators.
She suggested the City Council approve defining short-term rentals in zoning as a lodging use, but continue to allow them to have the right to operate anywhere in Dallas. The council could then make changes to the city code to help guide where they can be, such as requiring short-term rentals not be within 2,000 feet of each other.
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