There is a misconception that Sugar Land prohibits short-term rentals because the City would not be able to collect occupancy tax from these rentals. In fact, any owner that is operating a lodging business – including a short term rental – anywhere in the state of Texas is required to collect state hotel occupancy taxes that must be submitted to the State Comptroller.
Additionally, if STRs were allowed in Sugar Land (they are not), they would also be subject to the city’s hotel occupancy tax.