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Council revises short-term rental fees, discusses regulations
SMITHVILLE – City Council adopted the tax rate and budget for Fiscal Year 2025 during a Sept. 9 meeting.
The adopted tax rate, set at $0.588952, represents a 7.2% overall increase, or an additional 4 cents per $100 valuation, according to city officials.
Council members i n it ial ly considered a 7-cent increase but worked to reduce it down to 4 cents. To balance out the budget with this lower tax rate increase, council members will have to make decisions about where to cut, officials said.
“We can adopt [the tax rate] at a deficit without an increase, but that deficit would have to be solved later,” Councilman Tom Etheredge said. To address budget concerns, the council made several adjustments, including cutting $21,000 from community grants, removing a $10,000 bonus for the city manager and reducing the mayor’s vehicle allowance by $6,000, prior to approval at the meeting.
In addition, short-term rental owners in Smithville will be required to pay a $150 permit fee starting Oct. 1, following council approval at the Sept. 9 meeting.
The measure, recommended by the Planning & Zoning Commission, passed unanimously, with Etheredge abstaining.
The council also discussed updates to shortterm rental regulations, to be decided at a future meeting.
One proposed change would require owners to pay Hotel Occupancy Taxes within 30 days, instead of the current “timely manner.” Owners not registered for HOT taxes would be ineligible for a permit, and the grace period for noncompliance would be reduced from 90 days to 30.
These recommendations, aimed at tightening enforcement and improving clarity, will be considered by the council in an upcoming session.
