OAK GROVE, KY (CHRISTIAN COUNTY NOW) – At the Dec. 3 Oak Grove City Council meeting, councilmembers approved the first reading of an ordinance that would collect a 3% transient room tax on all short-term rental properties like Airbnb’s in the city.
At a previous city council meeting on Nov. 19, members discovered over 50 homeowners in Oak Grove were renting out their homes as short-term rentals without having a business license to do so. In reference to Kentucky House Bill 8, all short-term rental properties and Airbnb must collect a transient room tax. Traci Cunningham, Executive Director of Visit Oak Grove explained to council the city is missing out on some money.
Council was also made aware that people in the city have been simply refusing to pay the tax. Mayor Jackie Oliver said they would rework their ordinances to make the wording more specific to these short-term rental owners. The proposed ordinance states a 3% tax must be paid on these rental properties to provide funds for the city’s recreational, tourist, and convention commission. An additional 1% would fund the operation and maintenance of a convention events center.
“A short-term rental is any unit or tenancy that is leased less than 30 consecutive days duration where no meals are served. One structure may contain multiple units that are rented; it does not include hotel or motel rooms,” said Lee Wilson, City Attorney. Wilson further emphasized that it is not a new tax but a reworking of previous ordinances.
There was no discussion from council and the motion passed unanimously.
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