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McKinney updates hotel occupancy tax ordinance for short-term rentals

A new amendment to McKinney’s hotel occupancy tax collections will enable the city to collect taxes from Vrbo for short-term rentals operating within the city.

What happened: McKinney City Council members passed the amendment during a Sept. 2 meeting. It updates the city’s ordinance language so that the city’s hotel occupancy tax will apply to short-term rentals reserved and paid for on all platforms including Vrbo, according to city officials.

Revenues collected from the hotels and short-term rentals in the city have increased in each of the last five fiscal years. In fiscal year 2023-24, more than $3 million was collected through the tax.

That money is used to promote McKinney as a tourist destination, said Sarah Nolting, senior communications and media specialist for Visit McKinney. Hotel occupancy taxes were already being collected from homes rented on the Airbnb platform.

How it works: When a visitor books a hotel or a short-term rental, they pay a 13% hotel occupancy tax. The city keeps 7% and the remaining is collected by the state.

 
Latest News
Fair & Square Imports under new ownership in downtown McKinney

Fair & Square Imports, which was originally opened by Kate and Andrew Jones in 2012 , is now under new ownership. The downtown McKinney business is now owned by Brittany Otwell and Ivey Reynolds.

Quote of note: “After 13 incredible years, Kate Jones is stepping away to spend more time with her young children and pursue new adventures,” Otwell and Reynolds said in an email.

 
Latest Education News
Learn more about 13 colleges, universities in the Dallas-Fort Worth area

Interested in learning more about local higher education institutions? Check out updates and information about 13 universities and colleges in North Texas.

1. Collin College: Beginning in the fall 2025 semester, Collin College students gained access to online education from schools across the state through a partnership with the Texas Statewide Course Sharing Exchange Program. The program allows students to sign up for online courses from schools statewide while also enrolled in Collin College courses, with the goal to increase availability of courses while also supporting students completing their education, a college news release states.

  • College type: two-year, four-year
  • Campuses in Frisco, McKinney, Plano, Wylie and more

2. Texas Christian University: Six new residence halls are under construction. In 2027, the university plans to open a 550-bed hall in Worth Hills and, on the east side of campus, three first-year halls totaling 1,350 beds, a 450-bed hall for sophomores, and a 120-bed townhome and apartment community for upperclassmen.
  • College type: four-year
  • 2800 S. University Drive, Fort Worth

 
CI Texas
Texas enacts new rules prohibiting THC sales to customers under 21

All Texas retailers are barred from selling consumable THC products to customers under 21 years old after the Texas Department of State Health Services adopted two emergency rules Oct. 3.

The details: The new rules, which took effect immediately, state that businesses may lose their hemp licenses for selling THC products to minors.

Ten days earlier, the Texas Alcoholic Beverage Commission approved emergency rules prohibiting bars, liquor stores and other alcohol retailers from selling THC products to anyone under 21. A TABC spokesperson told Community Impact the two state agencies are working together to enforce a Sept. 10 executive order by Gov. Greg Abbott, who called for age restrictions on THC sales and tighter guardrails on the multibillion-dollar industry.

More context: Approximately 8,000 businesses are licensed by the DSHS to sell consumable hemp products in Texas, including some retailers that also sell alcohol.

The emergency rules from both agencies will be in effect for 120 days and could be extended for an additional 60 days while permanent regulations are drafted.

 

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Shelbie Hamilton
Editor

Miranda Talley
General Manager

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