Farmersville, TX Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Tax rate
- 7% of rental price (§ 68-21(b))
- STR treated as
- "Hotel" under § 68-19(8)
- Filing frequency
- Quarterly reports (§ 68-23)
- Operator's cut
- 1% of tax collected (§ 68-22(c))
- Late penalty
- 5% + 5% after 60 days, 10%/yr interest
Summary
Farmersville's hotel occupancy tax applies to short-term rentals: Code § 68-19 defines "hotel" to include a short-term rental, and § 68-21 sets the tax at seven percent of the rental price, collected quarterly from the operator.
For purposes of the imposition of hotel occupancy tax under the ''Taxation" chapter of the Farmersville Code, "hotel" includes a short-term rental as defined herein. ... (8)Short-term rental shall mean the rental of all or part of a residential property to a person who is not a permanent resident under Section 156.101 of the Texas Tax Code, as amended. ... (b)The tax shall be equal to seven percent of the total price of a sleeping room or sleeping facility, said price to include all goods and services provided by the hotel which are not ordinarily subject to sales tax.
Full Breakdown
The Farmersville Code of Ordinances folds short-term rentals directly into its hotel occupancy tax chapter. " That means an owner renting a house, room or apartment short-term is treated the same as a hotel operator for tax purposes. Section 68-21(b) sets the rate at "seven percent of the total price of a sleeping room or sleeping facility," and § 68-22 requires "a person who owns, operates, manages, or controls a hotel or collects payment for the use or possession" of the space to collect that tax for the city, depositing proceeds into a separate liability account; the operator keeps one percent of what is collected as an administrative reimbursement under § 68-22(c), but can forfeit it for late payment or a false report.
151. 00 per day, or by a permanent resident (30+ consecutive days), is exempt under § 68-21(c). Section 68-20 makes an operator's failure to collect, report or remit the tax, or filing a false report, a class C misdemeanor under § 1-3, and § 68-27 adds a five percent penalty for late filing or payment, another five percent if unpaid past 60 days, plus ten percent annual interest after that.
Violations & Fines
Failing to collect or remit the short-term rental occupancy tax, or filing a false report, is a class C misdemeanor under § 68-20(b), with each day of noncompliance a separate offense; § 68-27 layers on a five percent penalty for a late report or payment, a second five percent penalty if still unpaid after 60 days, and ten percent annual interest on the delinquent balance thereafter.
Frequently Asked Questions
Does Farmersville's hotel occupancy tax apply to Airbnb-style rentals?
How much occupancy tax does a Farmersville short-term rental owe?
How often must a short-term rental operator file and pay the tax?
Sources & Official References
Other rules in Farmersville
How Farmersville compares: Cities with the Highest Short-Term Rental Taxes·Texas rules heatmap·Compare Farmersville to another location·View the Texas short-term rentals overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Taxes & Fees in Nearby Cities
How other cities in Collin County handle taxes & fees.