Horse Farm

Offering Your Home to Visitors

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:

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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:

  • register with the Kentucky One-Stop Business Portal
  • secure a zoning license/certificate of occupancy from the local zoning department
  • obtain a federal employer identification number (EIN) from the IRS
  • register with the Kentucky Revenue Cabinet as required for Sales and Use Tax and for Transient Room Tax.

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
Room $100.00 
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