Some homeowners dodge transient room taxes

Whether a hotel room or an extra bedroom in a house, proprietors must pay taxes. But a website lists several locations in the region that arent in compliance with paying taxes, which could lead to problems for renters and guests.

Airbnb.com is a website where people can post extra rooms, homes or other spaces for travelers to view and book a stay. At present, there are two postings in Bowling Green and one each in Alvaton, Smiths Grove, Scottsville and Franklin.

Although Airbnb encourages hosts to research any taxes, permits or regulations that may apply, a nationwide issue with Airbnb is that hosts try to dodge such taxes, permits and regulations, saidVicki Fitch, executive director of the Bowling Green Area Convention & Visitors Bureau.

Beginning June 1, 2005, a new section of Kentucky Revised Statutes Chapter 142 created a transient room tax a lodging tax at the rate of 1 percent of the rent on every occupancy of any suite, room, rooms or cabins charged by all persons, companies, corporations, groups or organizations doing business as motor courts, motels, hotels, inns, tourist camps or like or similar accommodations businesses (excluding campgrounds).

The tax revenue goes into theTourism, Meeting and Convention Marketing Fund administered by the Commerce Cabinet, and its used for marketing and promoting Kentucky tourism.The transient room tax is assessed in addition to the 6 percent sales tax and any locally imposed room tax.

Fitch said hosts who dont pay taxes knowingly or unknowingly are hurting Kentucky.

The state is always in need of money, and this looks like a situation where they could get some, Fitch said. State sales tax is missing out on what looks like quite a bit of money.

Airbnb operates in 34,000 cities in 192 countries and has 1 million listings and 25 million guests, according to its website.

The way (Airbnb) is set up, theres nothing that gets you signed up with the city of Bowling Green. Theres nothing that gets you signed up to pay transient room taxes to the city or the state, Fitch said. This is not good for our state because were missing out on tourism with the structure in place.

When the visitors bureau learns that someone is renting a space and not paying taxes, the host is usually cooperative, Fitch said. Most of the time they realize the advantage of being part of the CVB system because we promote our lodging, Fitch said.

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Some homeowners dodge transient room taxes