Liberty Hill can now collect hotel occupancy taxes on hotels, bed and breakfast inns, and short-term rentals after council adopted an ordinance to this effect July 10.

Per the ordinance, the city can receive a 7% tax per occupancy within city limits or the extraterritorial jurisdiction.

Some context

City leaders began discussing passing an ordinance to collect hotel occupancy tax during the June 14 City Council meeting.

Joseph Crawford, the city’s legal counsel, said during the June 14 meeting the ordinance allows the city to collect tax on every entity the state allows, including Airbnb, Vrbo and other vacation rental companies, which are forms of short-term rentals.


The ordinance only captures the collection of taxes, Crawford said. It does outline specifics about zoning, or where a future hotel could be built or operated.

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Interim Director of Planning McKenzi Hicks said the hotel occupancy tax revenues will only be used toward events, festivals and other tourism initiatives.