Galveston short-term rental operators face new rules under latest ordinance

Short-term rental (STR) operators in Galveston, Texas, face stricter rules under a law approved by the City Council. In December 2024, the city created an ad hoc committee to study STR regulations, and most of the committee’s recommendations were approved by the City Council in the latest STR ordinance.

Under the law, STRs are defined as residential dwellings rented for fewer than 30 days, not including RVs, campers, or similar structures. Owners are required to register each STR property annually for a $250 fee, due by December 31 each year. Operators face a $500 late fee for missing the registration deadline. Owners must designate a local contact person for the property who can respond within one hour to complaints and is available 24 hours a day, seven days a week.

STR marketplaces such as Airbnb and Vrbo must require listed properties to have valid Galveston Vacation Rental (GVR) registration numbers. Marketplaces are required to remove listings that don’t include GVR registration numbers upon request by the city.

Operators are responsible for making sure guests observe city regulations. They’re required to post information for guests within the property on rules concerning occupancy, parking, and noise, as well as provide local contact information, emergency numbers, and flood-evacuation guidance.

The latest provisions of the city’s STR ordinance include harsher penalties for breaking the rules. The law creates a new STR licensing board, which can recommend the revocation of a license if an STR operator has three violations within 12 months. Those types of recommendations are reviewed by the city manager and decided by the City Council.

Violations of the law are Class C misdemeanors and may be issued to owners, operators, or occupants. They’re punishable by fines of up to $500 per offense, or up to $2,000 when relating to health, sanitation, zoning, or fire safety. Each day of a continuing violation constitutes a separate offense.

Responsibility for STR regulations was transferred from the Park Board to the city government on October 1, 2025.

Galveston STRs are subject to city and state lodging tax. The city’s hotel occupancy tax (HOT) applies to stays in “any building or buildings, or any other facility in which the public may, for a consideration, obtain sleeping accommodations,” including STRs. STR operators are required to collect the tax from guests and must file returns with the city monthly, even if the operator doesn’t collect any taxes that month.

All Texas STRs are also subject to state HOT. Operators must register with the Texas Comptroller’s Office, collect taxes, and file state occupancy tax returns. Owners aren’t required to register with the state if an STR marketplace collects all state hotel occupancy taxes for the property. STR marketplaces such as Airbnb and Vrbo are required to collect city and state tax for bookings on their sites.

Avalara MyLodgeTax can help short-term rental hosts automate and simplify city and state lodging tax compliance, from registration to tax return filing. If you have tax questions related to Texas vacation rental properties, drop us a line and we’ll get back to you with answers. See our Texas vacation rental tax guide for more on STR lodging taxes in the state.