Effective March 14, 2025
OneStop E-File users will now use MyTaxes.ky.gov to file Transient Room Tax returns beginning March 14. For more information and resources regarding the new tax portal visit MyTaxes - Department of Revenue.
House Bill 8 Legislative Changes (Effective January 1, 2023)
House Bill 8, passed in the 2022 legislative session, expands the transient room tax to include stays at campgrounds and RV parks. In addition, the new statutory language requires those facilitating the rental of accommodations to collect the room tax on their total charges for the rental of accommodations. Also, receipts from a customer for a continuous stay of 30 days or more are excluded from the transient room tax. Frequently Asked Questions can be found on
taxanswers.ky.gov.
Airbnb and VRBO Host Partners
Airbnb and VRBO are collecting and remitting the 1% state-wide transient room tax for all participating Kentucky hosts. Effective January 1, 2023, these online platforms are also required to report and pay the local transient room tax based upon total charges for rentals, including service fees. If doing business exclusively with Airbnb or VRBO, businesses do not need to maintain a state Transient Room Tax account.
KRS Chapter 142 - Section 400 creates a transient room tax (lodging tax) at the rate of 1 percent of the rent, on every occupancy of any suite, room, rooms, cabins, lodgings, campsites, or other accommodations charged by any hotel, motel, inn, tourist camp, tourist cabin, campground, recreational vehicle park, or other place in which accommodations are regularly furnished to transients for a consideration or by any person that facilitates the rental of the accommodations by brokering, coordinating, or in any other way arranging for the rental of the accommodations for consideration.
The transient room tax is in addition to the current 6 percent sales tax, and any locally assessed transient room tax, and will be reported separately each month.
For the purposes of state sales tax calculations, the 1 percent transient room tax should be reported as part of taxable receipts just as the locally assessed transient room tax is currently reported.
Tax receipts from this tax are deposited into the Tourism, Meeting and Convention Marketing Fund administered by the Tourism, Arts and Heritage Cabinet. This fund shall be used for the sole purpose of marketing and promoting tourism in the Commonwealth including expenditures to market and promote events and venues related to meetings, conventions, trade shows, cultural activities, historical sites, recreation, entertainment, natural phenomena, areas of scenic beauty, craft marketing, and any other economic activity that brings tourists and visitors to the Commonwealth.