Killeen, TX Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Tax rate
- 7 percent of guest's paid consideration
- Governing sections
- Sec. 31-959; Sec. 27-72, 27-74, 27-76
- Exemption
- Permanent residents staying 30+ consecutive days
- Report deadline
- Last day of month following collection month
- Late penalty
- 5% plus 5% after 30 days, 12% interest
- Permit risk
- Unpaid tax is grounds for permit revocation
- Offense level
- Misdemeanor under Sec. 27-76
Summary
Every short term rental host in Killeen must collect and remit the city's hotel occupancy tax under section 31-959, which sets the rate by cross-reference to section 27-72: seven percent of what the guest pays, on top of any state tax. Staying current on that tax is a condition of keeping the STR permit valid; falling behind is grounds for the city to deny or revoke it outright.
Every person owning, operating, managing or controlling a short term rental shall collect the tax imposed in section 27-72 of this City Code for the city and remit the same to the tax assessor-collector on or before the due date, and at the same time file the report required by section 27-74. If any person shall fail to collect the tax imposed in article IV...or shall file a false report, then such person shall be deemed guilty of a misdemeanor and, upon conviction, shall be punished as provided in section 27-76 of this Code. ... There is hereby levied a tax upon the occupant of any room or space furnished by any hotel where such cost of occupancy is at the rate of two dollars ($2.00) or more per day, such tax to be equal to seven (7) percent of the consideration paid by the occupant of such room, space or facility to such hotel, exclusive of other occupancy taxes imposed by other governmental agencies.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 38 Update 1).
Full Breakdown
Section 31-959 puts the tax duty directly on short term rental operators: every person owning, operating, managing or controlling an STR must collect the hotel occupancy tax imposed by section 27-72 and remit it to the city's tax assessor-collector by the due date, filing the monthly report required under section 27-74 at the same time. 00 or more per day, on top of any occupancy tax collected by the state or county. Section 27-72(b) exempts permanent residents, defined in section 27-71 as anyone with a right to occupy the space for at least thirty consecutive days in the current or preceding calendar year, and section 27-72(c) exempts diplomatic personnel and federal or state employees and military personnel traveling on official business.
Beyond the tax itself, section 31-955(b) makes staying current on hotel occupancy tax a condition of the STR permit's initial and continued validity, and section 31-956(b)(5) lists failure to pay the tax as a stand-alone ground for the city to revoke a permit already issued. Reports are due by the last day of the month following each collection month under section 27-74(a), and every report must include a copy of the hotel's most recent quarterly filing with the state comptroller under section 27-74(b).
Violations & Fines
Section 31-959 makes failing to collect the tax, failing to file the section 27-74 report, failing to remit on time, or filing a false report a misdemeanor, punished under section 27-76. That section adds financial teeth on top of the criminal charge: a 5 percent penalty for late payment, another 5 percent if the tax is still unpaid after thirty days, and interest at 12 percent per year starting sixty days after the due date. Unpaid hotel tax is also independent grounds for the city to revoke the STR permit itself under section 31-956(b)(5).
Frequently Asked Questions
How much hotel occupancy tax does a Killeen short term rental owe?
Do long-term guests have to pay the hotel tax too?
What happens if an STR host does not pay the occupancy tax?
Sources & Official References
Other rules in Killeen
How Killeen compares: Cities with the Highest Short-Term Rental Taxes·Texas rules heatmap·Compare Killeen to another location·View the Texas short-term rentals overview
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