Transient Room Tax
The Shelby County Occupational License Office is the collection agent on behalf of Shelby County Fiscal Court for a transient room tax.
A transient room tax in the amount of 3% of the rent for every occupancy of suite, room, or rooms, charged by all persons, companies, corporations, or other like similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations businesses.
A local conference center tax in the amount of 1% of the rent for every occupancy of suite, room, or rooms, charged by all persons, companies, corporations, or other like similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations businesses.
IMPORTANT NOTE:
While local transient room tax is ultimately the responsibility of the host, Kentucky House Bill 8, passed in the 2022 legislative session (effective January 1, 2023) states that online short-term rental platforms are required to report and pay any local taxes on behalf of the host if the short-term rental is managed through a hosting platform such as VRBO, Evolve, Airbnb, etc.
AIRBNB IS CURRENTLY NOT COMPLYING WITH LOCAL TAX REMITTANCE REQUIREMENTS AND DOES NOT SUBMIT PAYMENTS DIRECTLY TO SHELBY COUNTY ON BEHALF OF ITS HOSTS. AS A RESULT, PROPERTY OWNERS WHO USE AIRBNB ARE INDIVIDUALLY RESPONSIBLE FOR REPORTING AND PAYING THESE LOCAL TAXES DUE EACH MONTH.
Please contact our office at 502-633-7685 for any questions about your tax obligations.
Exception to Transient Room Taxes
Transient room taxes shall not apply to the rental or leasing of an apartment supplied buy an individual or business that regularly holds itself out as exclusively providing apartments.
Disposition of Funds
- All room taxes collected shall be remitted to the Occupational Tax Administrator no later than 30 days following the last day of the month in which the taxes have been charged.
- All room taxes collected that are not remitted to the Occupational Tax Administrator as required shall bear interest at the rate of 12% per annum which shall be added to the principal amount due when paid.
- In the event that any room taxes collected pursuant to this subchapter are not remitted to the Occupational Tax Administrator as required, Shelby County Fiscal Court may seek enforcement and collection through the county attorney's office.