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Maureen Salahshoor Denver, CO
With the change, Kansas City short-term rentals will be subject to lodging taxes for the first time. The city’s convention and tourism tax only applies to establishments offering sleeping accommodations for transient guests that have more than eight bedrooms. The ballot question creates a transient boarding and accommodation tax that applies to all lodging establishments, including short-term rentals, that are not otherwise subject to the convention and tourism tax.
Short-term rental guests will pay the tax when they pay their bill. Operators will be required to register with the city for tax purposes, collect the tax from guests, file lodging tax returns, and submit the tax to the city.
It’s estimated that around 4,000 short-term rentals are operating in Kansas City, but only 7% of them are registered, according to a city audit. Short-term rentals make up an estimated 7% to 11% of the city’s overall hotel room supply. The audit also shows that Kansas City missed out on $2.28 million between July 2021 to August 2022 from not levying the convention and tourism tax on STRs.
Tax registration for short-term rentals could begin as early as May 15. However, the city will not be able to collect the tax on visitors in town for the NFL draft April 27–29. Read on to learn more.
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