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4. Kansas City, Missouri ballot measures would apply fees and lodging taxes to short-term rentals

Maureen Salahshoor Denver, CO

February 10, 2023

Voters in Kansas City, Missouri, will decide whether to impose lodging taxes and fees on short-term rentals when they go to the ballot on April 4.

Currently, the city doesn’t collect lodging taxes on most short-term rentals (STRs) because its lodging taxes only apply to hotels. Under Missouri law, hotels are defined as having more than eight bedrooms for guest accommodations, and Kansas City has followed the state definition. The ballot measures would specifically authorize taxes and fees on short-term rentals.

The April ballot will include two questions:

“Shall the City of Kansas City impose a Transient Boarding and Accommodation Tax of seven and one-half percent (7.5%) to all lodging establishments, including short-term rentals, not otherwise subject to the City’s Convention and Tourism Tax?”

• “Shall the City be authorized to impose the following license fee for the purpose of funding convention and tourism activities: Up to an additional $1.50 per occupied sleeping room per day on all hotels, motels and tourist courts, with such fees being in addition to the existing $1.50 occupancy fee on hotels and motels for a combined fee of $3.00 per occupied sleeping room per day also to be applied to all short-term rentals conducting business within the City?”

If approved, the occupancy fees could generate around $4.5 million annually, and the taxes could generate $2 million to $3 million each year.  

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