Tuesday, October 17, 2017

City Hall Anti-Tech Resolution: Show-Me Kansas City Asking Missouri For Airbnb Taxes



Here's a look at the latest City Hall crackdown on tech at the behest of neighbors concerned about transient traffic.

Moreover . . .

THIS REQUEST FOR SHORT-TERM RENTAL TAXES SHOULD EFFECTIVELY TAKE THE PROFIT MOTIVE OUT OF MOST AIRBNB OPERATORS IN KANSAS CITY!!!

And once again the "transformative" nature of this new service and the power of apps as "disruptors" of industries is really just a matter of how quickly local government catches up to tax small biz and local operators. Which has always been pretty fast in this rather biz unfriendly town.

Check this week's resolution that's pretty much the opposite of "silicon prairie" hype.

RESOLUTION NO. 170778

Declaring the City’s intention to include a legislative priority for the upcoming state legislative session to clarify provisions authorizing the Convention and Tourism Tax so that the tax may be applied to short term rentals, and so that the tax may be used for neighborhood home repair.

WHEREAS, the City imposes a 7 1/2 % Convention and Tourism Tax on charges for room nights in hotels, motels and tourist courts; and

WHEREAS, the statutory authority for this tax defines “hotel, motel or tourist court” as lodging having more than eight bedrooms, and therefore the tax does not apply to transient lodging with less than eight bedrooms; and

WHEREAS, the City Council is considering two short term rental ordinances which would allow the provision of transient lodging in homes with less than eight bedrooms; and

WHEREAS, if the short term rentals are not required to pay the Convention and Tourism Tax, those establishments would receive an unfair advantage on City taxation; and

WHEREAS, a change in the state definition would allow the City to impose this tax on short term rentals with less than eight bedrooms and would level the playing field for all transient lodging . . .



WHEREAS, a change in the restrictions on spending the Convention and Tourism tax is needed so the City can use the additional revenue from the short term rentals for home repair assistance; NOW, THEREFORE,

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the City Council intends to include in its legislative priorities for the 2018 state legislative session a change to the Convention and Tourism Tax authorization so that short term rentals with less than eight bedrooms may be required to pay this tax.

Section 2. That the City Council intends to additionally seek a change in the restrictions on spending the revenues from the Convention and Tourism Tax so that the additional revenues from the tax can be spent on home repair assistance.
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Developing . . .

6 Comments:

Anonymous said...

The gang at 12th and Oak have to be constantly looking for something else to tax, but even their best efforts continue to fail to raise revenue as fast as they find new ways to blow it on toys or give it away to "developers".
Hotel and rental car fees are already much higher than comparable cities, but there's no understanding of how that discourages conventions and visitors.
And last on the list of any consideration of taxes, fees, utility costs, and all the rest are the residents and small businesses who actually have the misfortune of being located in KCMO.
Financial wizards , all!

Anonymous said...


If you rent out your home or a room in your home for 14 days or less a year you don't even have to report it as income, but you can't claim any deductions.
If you rent out your home or a room in your home for more than 14 days a year then you have to report it, but you can also claim deductions, food, water, cleaning supplies,and more.

Tracy Thomas said...

My friend from Lenexa owns three condos in Taos, listed on VRBO, and the ordinance in Taos is quite clear. She charges the CVB tax as part of her VRBO rate. And she remits those taxes to the city's fund. I don't know how they spend it there.

One thing to be cautious about is not to charge a CVB tax on LONG TERM RENTAL PROPERTY. That is a major income strategy for folks who hate gambling in the stock market. Don't mess with that. Prudent owners of rental property maintain it, in order to collect fair rental rates. It "keeps the neighborrhood up".

If the city messes with that, they are playing into the hands of "We Buy Ugly Houses", or, in the case of wide swaths of improperly maintained property, the Development Whores. They might as well have billboards: We Buy Ugly Shopping Centers and Demand TIF's to Remodel Them.

Anonymous said...

So how they gonna know. Listing a room for rent does not mean it is rented. The web site that rents it is beyond the scope of this dink city.

JoCoPost said...

Not exactly sure, 1:53--but all it takes is the threat of a lawsuit or being enjoined from operating in KCMO would be enough for VRBO to comply.
It works in other cities.
You're always trying to work the angles, aren't ya, Mr. Anonymous...
sign your work.

JoCoPost said...

Or AirBnB, obviously.
My friend lists on both in Taos.
Pays the city tax on both.