Frequently Asked Questions

What is an STR?

Short-term rentals, often abbreviated to STRs, are any portion, or all, of a dwelling unit, offered or used for transient lodging, in exchange for compensation, for less than thirty (30) consecutive days. A vacation rental is the same as a short-term rental. Hotels, motels, and bed and breakfast facilities are not considered STRs. RV Parks and campgrounds are not included unless units within them are rented out for less than 30 consecutive days.

The City Council’s action is an interim prohibition on new short-term rentals, to give the City time to develop a long-term policy. The interim prohibition means no new STRs are legally allowed in the City until May 15, 2024, to allow time for the City to develop and implement a long-term policy. The purpose of the prohibition is to give the city time to study the issue, hold public open house meetings, and finalize recommendations, including hearing the opinions of a Council-appointed citizen task force. As part of the process, the City hired facilitators, Gap Strategies, to conduct a community-wide survey about STRs and to work with the task force and local advocates on various sides of the issue.

The City Council is considering whether to require STRs in Plano to formally register with the City as part of an interim step to regulate STRs. Currently, there are indirect ways for the City to track STRs in the City, and STRs are legally obligated to pay hotel occupancy taxes. However, there is no direct registration, nor a licensing fee, both of which Council is considering.

City Council is scheduled to consider the STR registration ordinance at its August 14, 2023 regular meeting.

The management of short-term rentals is a challenge for many Texas cities as both the law and the industry continue to develop.

Texas law is not very clear on short-term rentals. The state has mostly left the issue to city and county governments. That may change as legal disputes continue to develop between short-term rental owners and others, including local governments.

The city enforces laws that prohibit disturbances (such as noise) and behaviors (such as disorderly conduct), traffic violations, excessive occupancy, and trash accumulation. For disturbances, behavior concerns, or street obstructions, call 911. For excessive occupancy concerns, suspected illegal land use, or trash, call Property Standards at 972-208-8150 or email psdsupport@plano.gov.

See this flyer for easy reference to these contacts.

The City of Plano is asking citizens to help determine how short-term rental properties should be governed. Citizens’ thoughts and opinions will be used by City staff, a citizen task force, the Planning & Zoning Commission (P&Z), and City Council to craft policies about short-term rentals inside the city limits.

For more information on the process visit our about page here

The Plano Short-Term Rental Study kicked off with a community survey in the spring of 2023. An appointed citizen task force is set to begin their work in early summer, with work planned to wrap up in the spring of 2024.

You can read more about the STR Study and task force process below.

After a community survey and open house in spring and summer of 2023, initial findings of the Short-Term Rental Task Force were reported to P&Z and City Council in October of 2023.

The Task Force will reconvene in Fall 2023 to discuss P&Z and City Council’s feedback to the initial report and potential solutions to the findings and related issues from Phase I.

As a part of this second phase, an additional in-person and virtual open house will be held in February of 2024 to obtain citizen feedback on options discussed by the Task Force, and a final report will be presented to P&Z and City Council (anticipated in Spring 2024).

You can read more about the process here.

The City of Plano asked community volunteers to apply on PlanoSTR.com from May 3 - 17, 2023. While the final makeup of the task force was determined by City Council, these members will serve as a critical sounding board for the project team and help represent impacted residents, property, and business owners, and other key stakeholders in Plano.

It is anticipated the task force will require up to six in-person meetings over the course of a year.

See the make-up of the Task Force here.

Plano citizens were asked to participate in a community survey available on the website from April 17 - May 17, 2023.

In addition to this survey, the city will be hosting in-person and virtual open house meetings later in the summer. Sign up for our mailing list to be notified of the open houses.

Plano residents can also submit questions and comments here and attend all public meetings, where they can sign up to speak during public comments.

The Texas Supreme Court has ruled that renting out a home for people to stay in for a short period of time is not a commercial use of the property. Plano’s Zoning Ordinance does prohibit most, but not all, non-residential uses in Single Family zoning. For example, in-home daycare and home occupations are allowed by right in all Single Family (SF) zoning districts.

Based on the Supreme Court, the city must consider a short-term rental as a residential use, just like a longer-term rental. The city has established an interim prohibition in the Zoning Ordinance, that will prohibit new STR uses until May 15, 2024, to allow further study of the issue.

Yes, the city of Plano has a hotel occupancy tax, as does the state of Texas. The City receives monthly payments due to agreements with short-term rental platforms, similar to arrangements with the State Comptroller. The platforms collect the tax and remit it to the City. The platforms are not paying the taxes; they are just passing the dollars through to the City consistent with the requirements of State Law.

The use of hotel occupancy tax funds is limited by the State of Texas. It must be used to support tourism. Plano’s funds are used to maintain, improve, and operate the Plano Event Center; community and cultural events such as the Plano Balloon Festival, Plano International Festival, AsiaFest, and Lights at Legacy; and grant programs such as cultural arts and heritage preservation grants.

No. The State tax code and the City of Plano’s Zoning Ordinance are distinct parts of the law with their own definitions.

Plano’s Zoning Ordinance provides a definition of a hotel and determines the areas where a hotel can be located in Plano. Texas statute defines hotels for the purposes of state-wide taxation. The State’s statutory definition is not the same as Plano’s Zoning Ordinance definition. Plano recognizes and follows the state statute definition for tax collection purposes, but utilizes the definition in the Zoning Ordinance to regulate the location of hotels.

STR owners must remit hotel occupancy tax, and occupants and owners must abide by the same laws as other residential property owners and occupants.

See the STR registration question, above.

Long-term rentals of dwelling units (30 days or more) pay property tax, but do not have requirements to pay state taxes and are ineligible for a homestead exemption or senior tax freeze. Plano has a Multifamily Rental Registration & Inspection Program for multifamily properties with 5 or more units that are 5 or more years old.

No. But, in light of the adopted interim prohibition, only those currently operating a STR or those with investment-backed expectations may continue to operate STRs, until the interim prohibition expires.

Mandatory homeowner associations may choose to restrict short-term rentals in their bylaws.