People staying at short-term rentals in El Paso will soon pay the same hotel occupancy tax charged on hotel rooms, after City Council unanimously approved a resolution to collect the tax within city limits.
The tax applies to short-term rentals such as residential properties, apartments, condominiums or accessory dwellings rented to overnight guests for fewer than 30 consecutive days, including those commonly listed on sites like Airbnb and VRBO.
El Paso’s hotel occupancy tax is 17%, a charge hotel guests already pay on top of their room rental. Revenue from the tax is distributed among the city, county and state.
City officials said the tax on short-term rentals will begin to be collected no later than 180 days, and no sooner than 90 days, following public outreach.
The city generated about $18 million in hotel occupancy tax revenue from hotels alone during the last fiscal year. Officials anticipate short-term rentals will add about $3.5 million a year.
Under state law, hotel occupancy tax revenue is restricted to tourism-related purposes, including the convention and hotel industry. In El Paso, the new revenue will go toward improvements at the Judson F. William Convention Center, funding for arts and cultural programs, and debt payments for the city-owned Downtown ballpark, which already receives hotel tax dollars.
The tax decision was part of a broader week in local news that also included the permanent closure of St. Pius X Catholic School in East Central El Paso.
The school shut down Wednesday, with church leaders citing falling enrollment and financial strain. "For generations, our school has been a treasured ministry of the parish, forming young people in faith, academic excellence, and service", the Rev. Miguel Ángel Sánchez of St. Pius X Catholic Church said in a news release. "Countless families have entrusted their children to St. Pius X, and the impact of our school will continue to be felt throughout our parish and community for years to come."
The church said current and projected enrollment figures point to an annual operating deficit exceeding $300,000. The release said St. Pius school at 1007 Geronimo Drive had seen a steady decline in enrollment since the COVID-19 pandemic, similar to many Catholic schools throughout the nation.
Parish leadership, the release states, will work closely with affected families "to assist them as they explore educational opportunities for the upcoming academic year", the release states.
The school opened in 1955 and was named after Pope St. Pius X, who established the Diocese of El Paso. The church said the closure is not tied to the El Paso Catholic Diocese’s recent bankruptcy filings, which have no immediate impact on its parishes, schools or foundation.