Kansas City voters approve 7.5% tax and new fee for short-term rentals, like Airbnb
Kansas Citians on Tuesday voted to impose a 7.5% tax on short-term rentals in a ballot question that the mayor has said would help the city “better regulate” such rentals.
In unofficial results, the initiative passed with more than 60% of the vote, meaning Kansas City will impose the tax on owners of such rentals and other lodging establishments that are not already covered by the city’s 7.5% convention and tourism tax.
The city was not already collecting special tourism taxes or fees from short-term rentals because they are not legally considered hotels. The new tax will be called the transient boarding and accommodation tax.
Mayor Quinton Lucas and City Council members Kevin O’Neill and Eric Bunch sponsored an ordinance to get the question in front of voters.
The vote was 27,891 to 17,769 in favor of the measure.
Voters also decided that the city should double the $1.50 a night lodging fee for stays in hotels, motels and short-term rentals such as Airbnb and Vrbo, which also will now pay the 7.5% tax.
The second fee was also approved by about 60% of the vote, with 28,224 voting yes and 17,459 voting no, according to unofficial results from election boards.
Since 2018, more than 4,000 short term rentals have been listed in Kansas City on third party websites.
Community members, concerned about rentals disrupting their neighborhoods, have raised questions about the benefits of the industry. That led to a city audit, which found that between July 2021 and August 2022, the city missed out on more than $2.28 million in potential tourism tax revenue from short-term rentals. The city also missed out another $353,600 in occupancy fees in that time.
This story was originally published April 4, 2023 at 10:05 PM.
