Short-Term Rentals, Long-Term Taxes

Source: Show-Me Institute
by David Stokes

“Kansas City and Springfield both have hotel tax proposals on their April ballots. In neither case do they propose raising the hotel tax (dare to dream that this were the case for all tax increase votes). Instead, they are seeking to expand the imposition of hotel taxes to short-term rentals, such as Airbnb, Vrbo, and that neighbor lady down the street who rents spare rooms out to minor league hockey players like in Youngblood. Expanding the tax base makes for good tax policy, and equalizing the tax difference between competitors is also good policy. There is no reason that a hotel should have its guests pay one tax rate while Vrbo guests pay a lower rate.” (03/15/23)