KTIA Legislative Alert (February 16, 2018)

HB 383 Introduced to Move Responsibility for Collecting and Remitting Local Transient Room Tax from KY homeowners to Airbnb 

State Representative Diane St. Onge (R- Fort Wright) has introduced legislation, House Bill 383 requiring shared economy lodging operations (such as Airbnb) to remit local transient room taxes. This issue is one of the top priorities of KTIA's 2018 Legislative Agenda. Click here to access a copy of the bill. 

Airbnb and Kentucky's Department of Revenue reached an agreement last year that required Airbnb to collect and remit the 1% statewide transient room tax and the state sales tax. That agreement did not include payment of local transient room taxes, a requirement for all other lodging businesses, which are the primary source of funds for Kentucky's convention & visitors' bureaus and tourist commissions.

Representative St. Onge, a strong tourism supporter, chairs the House Small Business and Information Technology Committee. She views the importance of a level lodging playing field as a tourism business issue. Her committee is expected to hear the bill in the coming days.  

It is important to understand that HB 383 places the responsibility to collect and remit the local transient room tax on the companies, such as Airbnb, and not on Kentuckians who "host" visitors to the property:

HERE'S WHAT KTIA MEMBERS NEED TO DO IMMEDIATELY:

Send an email and leave a phone message for your State Representative, Senator and to members of the House Small Business and Information Technology Committee. Click here for a list of committee members and here to determine who your Representative and Senator are. Information to Representatives and Senators should include those where you live and where you business is if different.

ASK THEM TO SUPPORT HOUSE BILL 383 TO SUPPORT THEIR LOCAL ECONOMY

Make the following points:

  • This is not a new tax nor is it a tax increase or expansion, but it will mean new revenue. The local transient room tax is currently required. This bill moves the responsibility to collect and remit the required tax from KY homeowners to a large out-of-state corporation with the ability to do so. It is an existing tax that helps market Kentucky as a tourist destination.
  • HB 383 means fairness for all. Traditional hotels and franchises with Kentucky owners pay their required taxes.  It is only fair that large "shared economy" companies like Airbnb do so as well.  The bill is also fair to smaller communities that don't have the clout of large cities to force these companies to collect the tax.
  • Local property owners will not be required to collect the tax.  HB 383 requires collection by the company, not by the local property owner.
  • Online booking services already cooperate in other states to collect and remit these taxes.  If they can do so elsewhere, why not require the same in Kentucky?
HB 383 Legislator Meeting Leave Behind
Text of HB 383