Thinking about offering your home, or a room in your home, on AirBnB, VRBO or other similar services? There are a few things you need to know to make sure you are in compliance with state and local laws. We've compiled some resources for you.
Here's a Short Term Rental Guide for anyone who wants to open a short-term rental business in Fayette County. It will help you understand all the license, tax and zoning ordinances and regulations that go hand-in-hand with offering a short-term rental:
You'll also want to contact the Kentucky Small Business Development Center to learn how to start a small business in Kentucky. Among other things, you will need to:
The local office (Bluegrass SBDC) can walk you through this process: (859) 257-7666.
Per Kentucky state statute and local ordinance, you will be required to pay sales tax and transient room tax.
Transient Room Tax Calculation Example
4% Tax - VisitLEX $4.00
1% Tax - State of Kentucky $1.00
4.5% Tax - Lexington Center Corporation $4.50
Room Total $109.50
6% State Sales Tax $6.57
Total Room and Tax $116.07