Austin Investors Flee After 45% STR Tax Hike
New 11% Hotel Occupancy Tax Forces Platform Collection and Compliance Changes Several thousand short-term rental operators in Austin now face mandatory compliance with an expanded 11% hotel occupancy tax. This tax took effect on April 1, 2025, fundamentally reshaping the city's rental environment. The tax structure combines a 9% occupancy tax with a 2% venue project tax. It targets all accommodations costing $2 or more per day for stays of 30 days or less. Major platforms such as Airbnb and Vrbo are now responsible for collecting taxes on behalf of property owners. This marks a significant shift in enforcement strategy. Austin's new tax echoes Oakland's focus on affordability , as it is designed to address market dynamics and generate revenue for local projects. Tax implications extend beyond licensed operators. It also captures thousands of previously unlicensed rentals operating throughout the city. Compliance challenges intensify as both individual operators and platform...