Midland, TX Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Tax base
- Short-term rentals taxed as hotels under Ch. 3-3
- Collector duty
- Host/operator collects and remits, keeps 1% for costs
- Filing deadline
- Quarterly report due last day of following month
- Exemption
- Permanent resident staying 30+ consecutive days pays no tax
- Penalty
- Up to $500/day fine plus 15% penalty and 12% interest
- Enforcement
- Director of Finance may file a tax lien
Summary
Midland taxes short-term rentals the same as hotels: any host renting a room or unit to a non-permanent guest for less than 30 consecutive days must collect and remit a hotel occupancy tax to the City under Chapter 3-3 of the Code of Ordinances, file quarterly reports with the Director of Finance, and keep exemption documentation for permanent residents and government travelers.
Hotel means a building in which members of the public obtain sleeping accommodations for consideration. The term includes a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, rooming house, bed and breakfast, or short-term rental. The term does not include:
1.A hospital, sanitarium, or nursing home;2.A dormitory or other housing facility owned or leased and operated by an institution of higher education or a private or independent institution of higher education as those terms are defined by Section 61.003, Education Code, as amended, used by the institution for the purpose of providing sleeping accommodations for persons engaged in an educational program or activity at the institution; or3.An oilfield portable unit, as defined by Section 152.001, Government Code, as amended. Permanent resident means a person who has the right to use or possess a room in a hotel for at least 30 consecutive days, so long as there is no interruption of payment for the period.
Short-term rental means the rental of all or part of a residential property to a person who is not a permanent resident.
Tourism means the guidance or management of tourists.
Tourist means an individual who travels from the individual's residence to a different municipality, county, state, or country for pleasure, recreation, education, or culture.
(Ordinance 7837, sec. 1, adopted 4/13/99; Ordinance 10190, sec. 1, adopted 6/8/2021)
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Municipal Code: Supplement 1 Update 2).
Full Breakdown
Midland's Chapter 3-3 Hotel Occupancy Tax defines 'hotel' to expressly include a 'short-term rental,' meaning any rental of all or part of a residential property to someone who is not a permanent resident (a guest with the right to occupy a room for at least 30 consecutive days without interruption of payment). 00 or more a day is a taxable occupancy under Sec. 3-3-1, unless the guest qualifies as a permanent resident or is a federal employee or state officer traveling on official duty under the exemptions in Sec.
3-3-2(C). The person who owns, operates, manages or controls the short-term rental must collect the tax and remit it to the City; Sec. 3-3-4(A) lets the collector deduct 1 percent of the tax due on the quarterly report as reimbursement for the cost of collecting. Reports are due to the Director of Finance on or before the last day of the month following each calendar quarter, showing the consideration paid for all room occupancies and the tax collected, with payment delivered at the same time (Sec.
3-3-5). The Director of Finance and City Auditor may inspect a host's books and records during reasonable business hours to verify a report's correctness (Sec. 3-3-6(B)). If a short-term rental is sold, the buyer must withhold enough of the purchase price to cover any unpaid tax until the seller produces a paid receipt or a certificate that none is due (Sec. 3-3-4(C)).
Violations & Fines
Failing to collect, report or pay the tax, or filing a false report, is a misdemeanor punishable by a fine up to $500.00 per day under Sec. 3-3-7(A), with each day of noncompliance a separate offense. The host also owes the City's attorney's fees plus a 15 percent penalty on the unpaid tax (Sec. 3-3-7(B)), 12 percent annual interest starting 60 days after the due date (Sec. 3-3-7(D)), and the Director of Finance may file a tax lien against the property (Sec. 3-3-7(C)).
Frequently Asked Questions
Does Midland's hotel occupancy tax apply to Airbnb and VRBO listings?
Who is exempt from paying the tax?
How often must a host file a report and pay the tax?
What happens if a host doesn't collect or pay the tax?
Sources & Official References
Other rules in Midland
How Midland compares: Cities with the Highest Short-Term Rental Taxes·Texas rules heatmap·Compare Midland to another location·View the Texas short-term rentals overview
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