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New law against "traveling housing agencies" using property tax loophole

A new law in Texas, effective from January 1, 2024, aims to close a property tax loophole exploited by traveling housing agencies, which have been renting out properties on a short-term basis while benefiting from a tax exemption meant for long-term residential use. These agencies, often operating under the guise of providing workforce housing, have been criticized for unfairly competing with local hotels and short-term rental operators who pay higher taxes. The legislation, supported by local hoteliers and short-term rental owners, seeks to level the playing field by ensuring that all short-term rental properties are subject to the same tax rates, thereby preventing the agencies from using the residential tax exemption. This move is expected to generate additional revenue for local governments and address the concerns of the hospitality industry in San Antonio and other affected areas.

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[ https://news4sanantonio.com/news/investigations/new-law-against-traveling-housing-agencies-using-property-tax-loophole ]