HomeMy WebLinkAboutPO 7302: ORDINANCE AMENDING THE CITY OF PORT ARTHUR, TEXAS CODE OF ORDINANCES, SHORT TERM RENTALS TO PAY HOTEL OCCUPANCY TAXES TO THE CITY P.O. 7302
RPC 12/20/2024
ORDINANCE NO.
AN ORDINANCE AMENDING THE CITY OF PORT ARTHUR, TEXAS CODE
OF ORDINANCES BY ADDING CHAPTER 22, ARTICLE XIII SHORT TERM
RENTALS, SECTION 22-670 THROUGH 22-674 TO REQUIRE SHORT TERM
RENTALS TO REGISTER AND OBTAIN A CITY PERMIT TO OPERATE;
SETTING MINIMUM STANDARDS OF CONDUCT TO OPERATE;REQUIRING
SHORT TERM RENTALS TO PAY HOTEL OCCUPANCY TAXES TO THE
CITY;PROVIDING A PENALTY FOR A VIOLATION;PROVIDING A SAVINGS
AND SEVERABILITY CLAUSE;AND PROVIDING AN EFFECTIVE DATE.
WHEREAS,the City of Port Arthur, Texas(City) is a home rule city acting under its charter adopted by
the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Texas Local
Government Code;
WHEREAS,a short-term rental is any residential dwelling or accessory building rented out for fewer than
30 consecutive days;
WHEREAS, the number of short term rentals in the City has almost doubled from Spring 2023 to Fall
2024.
WHEREAS,the City wants to establish regulations for the use of privately owned dwellings as short-term
rentals, to promote fire prevention and life safety, to minimize negative ancillary impact on surrounding
properties and to ensure the collection and payment of the hotel occupancy tax towards the City.
WHEREAS, the City Council finds that adopting this Ordinance is for the good government, peace and
order of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT
ARTHUR,TEXAS:
SECTION 1. The City of Port Arthur Code of Ordinances hereby creates Chapter 22 Businesses,Article
XIII Short Term Rentals, Sections 22-670 through 22-674 as follows:
Sec. 22-670 Definitions.
Accessory short term rental shall mean a property containing a Primary dwelling being used for long term
or permanent occupancy and a legal Accessory Dwelling Unit that is being used for a Short Term Rental.
Administrator shall mean the city manager or his designee.
City. For purposes of this article,the City of Port Arthur,Texas.
Occupant(s) shall mean the person or persons who have rented the short term rental and their guest(s).
Owner shall mean the person or entity that holds legal and/or equitable title to the private property.
Page 1
P.O.7302
RPC 12/20/2024
Operator shall mean every natural person, firm, partnership, association, social or fraternal organization,
corporation, estate, trust, receiver, syndicate, branch of government or any other group or combination
acting as a unit who is the proprietor of a short-term rental, whether in the capacity of owner, lessee,
sublessee,mortgage in possession,license or any capacity.Where the operator performs his or her functions
through a managing agent of any type of character,other than an employee,or where the operator performs
his or her functions through a rental agent,the managing agent or the rental agent shall have the same duties
as his or her principal.
Permit shall mean a short term rental permit.
Short-term rental(transient)-(STR), is the use for compensation of all or part of a dwelling unit or accessory
dwelling unit which includes but is not limited to a hotel, motel, single-family residence, apartment,
residential condominium units, townhouses and any and all other residential real estate improvements, in
which the public may obtain sleeping accommodations for a period of less than thirty(30)consecutive days.
The term applies regardless of whether the dwelling was originally constructed or zoned as a residential
dwelling. The term short term rental does not include:
(1) A dormitory or other housing facility owned or leased and operated by a private or independent
institution of higher education as those terms are defined by Section 61.003 Education Code,used
by the institution for the purpose of providing sleeping accommodations for persons engaged in an
educational program or activity at the institution; or
(2) Rental of a property pending closing of a bonafide real estate purchase contract.
Sec. 22-671 Short-Term Rental.
(a) The purpose of this article is to establish regulations for the registration and use of short term rentals
and to ensure among other things that habitation of such units is safe, occupancy taxes are paid in
a timely fashion and to provide for the general welfare of residents and visitors.
(b) The property owner shall designate themselves or an agent to comply with the requirements of this
article on behalf of the owner.The owner or designated agent is sometimes referred to as"operator"
herein.
(c) The owner shall not be relieved from any personal responsibility or personal liability for
noncompliance with any applicable law,rule or regulation pertaining to the use and occupancy of
the residential dwelling unit as a short term rental unit,regardless of whether such noncompliance
was committed by the owner,operator,authorized agent or representative or the occupants or guests
of the occupants.
(d) This article is not intended to provide any owner/operator of residential property with the right or
privilege to violate any city zoning, private conditions, covenants or restrictions applicable to the
owner's property that may prohibit the use of such owner's residential property for short-term rental
purposes as defined in this section or to repeal, abrogate or impair any existing easements,
covenants, or deed restrictions.
(e) Abrogation or greater restrictions. Where this article, and another ordinance conflict or overlap,
whichever imposes the more stringent restrictions shall prevail unless otherwise indicated.
(f) An advertisement promoting the availability of any dwelling unit for short term rental in violation
of any provision of this ordinance is prima facie evidence of a violation.
(g) Prima facie proof of violation of this article is established when a visual inspection of a short-term
rental dwelling by a code enforcement officer, building inspector, fire inspector, or police officer
reveals a greater occupancy load than was indicated on the short-term rental registration or where
it is determined on inspection the occupancy load would be greater than allowed by this ordinance.
Page 2
P.O. 7302
RPC 12/20/2024
Establishment of a prime facie level of proof of violation under this article does not preclude a
showing of illegal"occupancy"of a dwelling by a person in any other manner.
Sec.22-672 Registration and Permit.
(a) Prior to a dwelling unit as a short term rental or advertising in any manner the availability of the
dwelling unit for short term rental,the operator must submit the following information on a form
and in the manner prescribed by the administrator:
(1) The name, address, email and telephone number of the operator of the subject short term
rental unit;
(2) The name, address, email and twenty-four hour contact telephone number of a designated
local contact person;
(3) The local contact person is the operator or person designated by the operator who shall be
available twenty-four(24)hours per day, seven(7)days per week for the purpose of:
(i) Responding in person within one hour to complaints regarding the condition,
operation or conduct of occupants of the short term rental unit; and
(ii) Taking immediate remedial action to resolve any such complaints;
(ii) The name,mailing and physical address of the proposed short term rental unit;
(iii) The number of sleeping rooms and applicable occupancy limit of the proposed short term
rental unit.For the purposes of this section a sleeping room is any enclosed habitable space
within a dwelling unit which complies with applicable adopted codes of the city.This shall
not be interpreted to include the living rooms, family rooms, and other similar rooms in
which furniture such as fold-down beds or convertible couches are provided on a
permanent basis for regular accommodation of residents,temporary or otherwise;
(iv) Maximum occupancy is two(2)persons per sleeping room,plus an additional four(4)per
dwelling. For residential properties with more than three thousand two hundred fifty
(3,250) square feet of conditioned living space,the maximum occupancy shall be two(2)
persons per sleeping room plus and additional six(6).This section shall apply if in conflict
with any other code or occupancy regulation adopted by the code. The maximum
occupancy of a short-term rental shall be determined at the time a short-term rental permit
is issued or renewed. That capacity shall not be increased by subsequent construction of
any addition to the structure covered by the permit or by construction of any other structure
located on the property without an inspection and approval by building official and
submission of an amended registration form.
(v) Required trash toters: During the period of March 1St to September 8th of each year, each
short term rental shall have the minimum toters in service at each short term rental
dwelling.A dwelling unit with:
1-2 legal sleeping rooms shall have a minimum of one(1)toter.
3-5 legal sleeping rooms shall have a minimum of two(2)toters.
6 legal sleeping rooms shall have a minimum of three(3)toters.
Toters shall automatically be delivered to each short term rental as close as possible to the
March 1st date based on the number of legal sleeping rooms indicated on each short term
rental registration. Billing for required additional toters will automatically be adjusted on
each short term rental trash service account. Each short term rental owner or registered
agent is required to cancel said additional toter service at the September date,otherwise the
additional toter(s) shall remain at the short term rental dwelling and additional solid waste
fees shall remain in effect. During the off-season (September 9th to February 29th), toter
Page 3
P.O. 7302
RPC 12/20/2024
service may be reduced to a single toter as each short term dwelling to be determined by
the short term rental owner or registered agent.
(vi) Each residential short term rental unit will be assigned a unique number and be subject to
the registration fee.For the purpose of this article hotels and motels will register as a single
unit and pay a single fee regardless of the number of rooms;and
(vii) Any additional information the administrator determines necessary for the administration
of this section.
(b) Transferability. A short term rental permit is not transferable.
(c) Any property owner delinquent and/or owing city fees to include but not limited to occupancy tax,
sanitation or water service fees will be prohibited from registering a short term rental unit until such
time as payment or acceptable resolution is approved by the city finance department.
(d) Registration fee;renewal fee.
(1) The short term rental registration form shall be accompanied by a non-refundable per unit
registration fee as established by the city council.
(2) Registration of a short term rental is valid for twelve (12) months based on the calendar
year. Registration fees will not be pro-rated.
(e) Each short term rental,once properly registered shall be issued a permit with a unique registration
number. The registration number must be included in any and all advertisement for the short term
rental including interne booking sites.
(f) Each short term rental is subject to compliance with Texas Tax Code Chapter 351; and, the City
shall levy a hotel occupancy tax in any amount up to,and including seven percent of the price paid
for the short-term rental.The price of the short term rental does not include food and drink.
Sec. 22-673 Minimum Standards of Conduct.
(a) The owner, operator or their agent shall post a tenant information sheet in a visible, prominent
interior location at or near the primary entrance. This tenant information sheet shall provide basic,
minimum standards of conduct for occupants during their stay in the City of Port Arthur. At a
minimum the following items must be included on the information sheet or displayed as required:
(1) The name of property's designated contact person including a 24/7 phone number;
(2) Occupancy limit as established at the time of registration and permitting;
(3) Location of off-street parking, other available parking and location of any adjacent no-
parking fire lanes;
(4) Notice that failure to conform to the occupancy and parking requirements is a violation of
the City code and may subject the occupants to citation;
(5) Noise control(see Chapter 34,Article V);
(6) Trash collection information to include proper timing and placement of receptacles;
(7) Location of all required fire extinguishers; and
(8) Other information as required by administrators.
(b) Health and Life Safety. Owner or operation shall ensure all building and fire related construction
conforms to the city's adopted building code.
(c) All floors with an enclosed space of any kind must have a minimum of once (1) Class 2A:10B:C
type fire extinguisher (standard 51b. fire extinguisher) mounted so as to be conspicuous and
convenient for the occupants.
(d) Non-compliant sleeping rooms shall not be included in the maximum occupancy calculation and
notification shall be provided in the tenant information sheet that the noncompliant sleeping room
may not be used for sleeping.
Page 4
P.O.7302
RPC 12/20/2024
(e) Inspection.To ensure continued compliance with the requirements of this section,short term rental
properties will be subject to an inspection at registration and on subsequent renewal unless an
immediate inspection is required to address a specific concern or suspected violation. Missing a
scheduled inspection will be subject to a reinspection fee as shown in the city's fee schedule.
(f) Mandatory evacuation.All vacation rental units will be immediately evacuated upon notice.
(g) A sign no smaller than eight(8)inches by eighteen(18)inches outside the dwelling unit,at or near
the primary entrance or in a "street facing" window is required displaying contact and their 24/7
contact phone number in legible type no less than one and one-half(1 1/2) inches in height. For
multi-family properties or more than four(4)attached units connected horizontally and/or vertical,
a smaller sign no less than three(3)inches by five(5)inches similarly place may be used.
(h) Any other standards deemed necessary by the administrator to achieve the objectives of this section.
Sec. 22-674 Enforcement.Penalty Provisions.
(a) A violation under this section is a Class C misdemeanor offense punishable upon conviction by a
fine not to exceed five hundred dollars($500.00)per offense.Each day a violation continues shall
constitute a separate offense.Pursuant to state law and the City Code of Port Arthur,the maximum
penalty for offenses arising under such code or ordinance governing fire safety, zoning, public
health and sanitation,shall not exceed the sum of two thousand dollars($2,000.00).
(b) In addition to any other penalty provided, the city manager or his designee may direct the city
attorney to institute an action in any court having complete jurisdiction to enjoin any violation of
the provision of any subsection of this article.
(c) Establishment of a prima facie level of proof under this article does not preclude a showing of
illegal"occupancy"of a dwelling by a person in any other manner.
(d) If such maximum penalty provided for by this Code or any such offense is greater than the
maximum penalty provided the same or a similar offense under the laws of the state, then the
maximum penalty for violation as provided by state statute shall be the maximum penalty under
this Code.
(e) The owner/operator shall comply with all applicable laws, rules, and regulations pertaining to the
use and occupancy of the subject short term rental unit, including, but not limited to, Chapter 34
"Environment"and Chapter 102,"Taxation"of the City Code of Port Arthur.
(f) A person may be denied, suspended or revoked for any of the following reasons:
(1) Three(3)or more notices of violation issued within a twelve-month period for any conduct
or condition at the short-term rental that constitutes a violation of this section or federal,
state,or local law;
(2) Providing false or misleading information on a permit application;
(3) Representing a property available or otherwise making a residence available for occupancy
or rent as a short-term rental where the property does not hold a valid short term rental
permit;
(4) The permit holder is overdue in payment to the city of taxes, fees, fines, or penalties or
fails to provide documentation when requested showing all occupancy taxes have been
paid for the property.
(5) The short term rental is sold or otherwise transferred.
(6) Information provided with the permit application has changed or is no longer accurate and
the permit holder has failed to notify the city.
(g) Appeal. If an application for a short term rental permit or renewal is denied or the permit
subsequently revoked, the owner or operator may appeal ("appellant") to the administrator by
written notice delivered within ten(10)business days of denial or revocation.
Page 5
P.O.7302
RPC 12/20/2024
(1) The administrator shall have twenty(20)business days from the date on which the appeal
was received in which to give a written decision affirming, modifying, or reversing the
denial, suspension, or revocation as applicable.
(2) If the permit is denied,suspended,or revoked pursuant to this section,appellant may within
ten (10) business days of the service of notice of such determination submit to the
administrator a written request for a hearing to show cause as to why the permit should not
be denied,suspended,or revoked,as applicable.A hearing shall be scheduled within thirty
(30)business days of receipt of applicant's request and notice of the hearing shall be given
to applicant ten (10) business days before the hearing. At the hearing, the appellant and
city may present such evidence as may be relevant.
(3) Any notice or decision served to appellant shall be deemed served upon the appellant when
it is personally delivered or on the date it is mailed by United States mail, which proper
postage prepaid,to the name and address set forth on the application for permit,whichever
occurs first.
(4) Any appeal filed pursuant to this ordinance shall state succinctly the grounds upon which
it is asserted that the determination should be modified or reversed and shall be
accompanied by copies of the application for permit,the written notice of the determination
of the city,and any other information material to the determination.
(5) Judicial review of any such final decision of the city may be obtained through the filing or
an appropriate action in the appropriate district court within thirty(30)calendar days after
service on appellant of the decision. The applicant shall bear the burden in court. The
substantial evidence standard of review shall apply to such appeal.
SECTION 4. Savings Clause.This Ordinance shall be cumulative of all other ordinances of the City and
shall not repeal any of the provisions of those ordinances except in those instances where the provisions of
those ordinances are in direct conflict with the provisions of this Ordinance. Provided, however, that the
repeal of such ordinances or part of such ordinances, and the amendments and changes made by this
Ordinance, shall not affect any right,property,or claim which was or is vested in the City,or any act done,
or right accruing or accrued,or established,or any suit,action or proceeding had or commenced before the
time when this Ordinance shall take effect;nor shall said repeals,amendments or changes affect any offense
committed, or any penalty or forfeiture incurred, or any suit or prosecution pending at the time when this
Ordinance shall take effect under any of the ordinances or sections thereof or repealed,amended or changed;
and to that extent and for that purpose the provisions of each ordinances or parts of such ordinances shall
be deemed to remain and continue in full force and effect.
SECTION 5. Severability Clause. That should any part, sentence, or phrase of this Ordinance is
determined to be unlawful,void,or unenforceable,the validity of the remaining portions of this Ordinance
shall not be adversely affected. No portion of this Ordinance shall fail or become inoperative by reason of
the invalidity of any other part. All provisions of this Ordinance are declared to be severable.
SECTION 6. Effective Date.This Ordinance shall take effect , 2025.
Read, Adopted and Approved,this the 14th day of January 2025 AD, at a Regular Meeting of the City
Council of the City of Port Arthur,Texas by the following vote: AYES:
Mayor:
Councilmembers:
Page 6
P.O. 7302
RPC 12/20/2024
NOES:
Thurman Bill Bartie, Mayor
ATTEST:
Sherri Bellard,City Secretary
APPROVED AS TO LEGAL FORM:
Roxann Pats Cotrone , ity Attorney
APPROVED OR •.14k, IN .TRATION:
Ronald Burton,CP A 4iø '
Manager
Page 7