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Taxes›Texas›Henderson County›Tool

Tool
short-term rental taxes.

Data date: Oct 2026

Start with the recorded local taxes and permit overview for Tool, Texas. Check the current requirements for your exact address.

Source disagreement: Official City of Tool page (HTTP 200 verified 2026-10-12): 7% hotel occupancy tax under City Ordinance 2020-04 (Chapter 33), applies within city limits and ETJ. URL verified live (HTTP 200). [Enrichment 2026-10-12: quarterly filing, due/postmarked by the 15th of month following quarter; mail check to City Secretary, 701 N. Tool Dr, Tool TX 75143 - no online portal] [Rate corrected 2026-10-12: 7.0 -> 700. Unit fix: Ord. 2020-04 (Ch.33) sets 7% in city and ETJ; row filed 7.0 bps.]; SOURCE CONFLICT: one City FAQ says Airbnb and Vrbo do not remit City HOT, while another FAQ says they remit for individual owners and property managers. Integrated property managers self-remit. City HOT reports remain due monthly.

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What you need to do in Tool

Sources disagree
  1. To confirm
    Check that short-term rentals are allowed at your address

    The record has no finding on whether Tool allows short-term rentals. Ask the planning or zoning office before you list.

  2. To confirm
    Check whether you need a license or permit

    The record does not say whether Tool requires a short-term rental license. Ask the city or county licensing office.

  3. To confirm
    Find out who collects the 7% Tool occupancy tax

    Not confirmed per channel. Check each channel's tax settings; on direct bookings, you collect and remit it yourself.

  4. To do
    File monthly returns

    The record does not state the due day; the tax office's calendar has it.

Source disagreement: Official City of Tool page (HTTP 200 verified 2026-10-12): 7% hotel occupancy tax under City Ordinance 2020-04 (Chapter 33), applies within city limits and ETJ. URL verified live (HTTP 200). [Enrichment 2026-10-12: quarterly filing, due/postmarked by the 15th of month following quarter; mail check to City Secretary, 701 N. Tool Dr, Tool TX 75143 - no online portal] [Rate corrected 2026-10-12: 7.0 -> 700. Unit fix: Ord. 2020-04 (Ch.33) sets 7% in city and ETJ; row filed 7.0 bps.]; SOURCE CONFLICT: one City FAQ says Airbnb and Vrbo do not remit City HOT, while another FAQ says they remit for individual owners and property managers. Integrated property managers self-remit. City HOT reports remain due monthly. Confirm the disputed steps with the authority. Source

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What to know.

The published guide for Tool lists 7% local occupancy tax. The state table lists a 6% Texas state hotel occupancy tax in addition. Local hotel occupancy taxes may apply in addition to the state rate. License or registration details are not available.

At a glance.

Local tax
7%
State tax
6%
Total for a direct booking
13%
License
Not available
Local filing
Not available
SourceSources & confidenceHow we researchReport a problem with this page

Tax details

Exemptions, penalties, filing information, and effective dates from the linked sources.

Tool: Recorded penalties and interest

Failure to file or pay may result in fines/penalties as prescribed by Ord. 2020-04; underpaid tax (e.g. hosts deducting platform service fees from the tax base) is assessed a 15% penalty plus interest; late remittance is subject to interest under Ord. Section III.D (city HOT page and collection form).

Tool: Recorded effective date

2020-06-18

Tool: Recorded remittance instructions

SOURCE CONFLICT: one City FAQ says Airbnb and Vrbo do not remit City HOT, while another FAQ says they remit for individual owners and property managers. Integrated property managers self-remit. City HOT reports remain due monthly.

Tool: Recorded filing schedule

Filing frequency: Monthly.

Source for these notes: tooltexas.org: hotel occupancy tax

Platform tax collection guidance for Tool

Collection is shown separately for each booking channel. Direct-booking taxes are paid by the host.

PlatformStateLocal
AirbnbPlatform collectsCheck
VrboPlatform collectsCheck
Booking.comPlatform collectsCheck
DirectYou collect and remitYou collect and remit

Platform collects means the platform pays that tax. You collect and remit means you pay it. Collection details unavailable identifies a missing answer for that channel. Filing duties are listed separately.

Your next steps

  • Find permit information

    Permit requirements are not available in this guide. The linked authority provides application information.

  • Collection of the 7% local tax

    Collection details are not available for this tax.

  • File your tax returns

    File monthly returns. The record does not state the due day; the tax office's calendar has it.

  • Check the state tax requirements

    Use the linked state tax instructions to register and file.

Sources & confidence

How we collect and check this information · Report a problem with this page

FigureValueSourceStatus
Tool occupancy tax7%
Source
Source linked
Texas state hotel occupancy tax6%
Source
Source linked
Licensing recordNot available
Source
Source linked
Official sources for the taxes and permit requirements shown above.

Tool STR tax FAQ

Does Airbnb pay my Tool occupancy taxes?

Airbnb collection details are not available for this tax. You collect and remit tax on direct bookings.

Do I need a license to Airbnb in Tool?

The licensing requirement for Tool is not available. Check state and local license or registration rules before listing.

What happens if I don't file?

Penalties and interest depend on the tax and authority. Check the applicable rules and contact the authority about any missed filings or payments.

How often do I file?

File monthly returns. The record does not state the due day; the tax office's calendar has it.