Short term rentals have become very popular for tourists and business travelers in the past few years. The number of these properties in Frankfort and Franklin County is growing. The information below is meant to assist short term rental property owners by providing information on the requirements for registering and licensing your property and submitting the required state and local taxes.
Short Term Rental Property
A short-term rental property is defined as a residential dwelling unit that is used and advertised for rent for occupancies of less than 30 days.
City of Frankfort Regulations
If you are renting your room(s), condo, apartment, or home on websites such as VRBO, AirBnB, Home Away, Trip Advisor, etc. you are required to register your rental property each year with the City of Frankfort Planning Department. Registration is due each year on May 1.
A business license is also required – there are no exceptions, even if you rent your property only a few days each year. The City also requires you to have an annual inspection of the property.
City of Frankfort Tax Requirements
To operate a short-term rental property in the City of Frankfort, you are required to collect and remit the following taxes each quarter:
- 6% Kentucky Sales Tax
- 1% Kentucky Transient Tax
- 4% City of Frankfort Transient Room Tax
- 2% Fine Arts Tax
The Fine Arts tax must be paid to the Franklin County Treasurer each quarter.
Timely remittance of these taxes will avoid penalties, interest, and back tax payments.
Franklin County Regulations
If you are renting your room(s), condo, apartment, or home on websites such as VRBO, AirBnB, Home Away, Trip Advisor, etc. you are required to register with the Franklin County Planning & Zoning Department, and obtain a business license. There are no exceptions, even if you rent your property only a few days each year.
Franklin County Tax Requirements
To operate a short-term rental property in Franklin County, you must be collecting the following taxes:
- 6% Kentucky Sales Tax
- 1% Kentucky Transient Tax
- 3% Franklin County Transient Room Tax
- 2% Fine Arts Tax
Airbnb and VRBO collect and remit Kentucky State Sales Tax (6%) and Kentucky Transient Room Tax (1%). They do not collect or submit Franklin County Transient Room Tax, City of Frankfort Transient Room Tax, or Franklin County Fine Arts Tax. The property owner is responsible for remittance of these local taxes.
The short-term rental property owner is responsible for submitting ALL City of Frankfort and Franklin County taxes.
About the Tourist and Convention Commission
The Frankfort / Franklin County Tourist and Convention Commission is a Destination Marketing Organization. Our mission is to promote Frankfort and Franklin County to leisure and business travelers, event, meeting and sports planners, and encourage them to visit, dine, shop and stay in our community.
The local transient room tax monies submitted by hotels and short-term rental properties directly funds these marketing and promotion efforts. The downtown Frankfort Visitor Center is a source for information and assistance. The Capital Visitor Guide (published annually) as well as https://visitfrankfort.com and #visitfrankfortky provide up-to-date information on attractions, tours, accommodations, dining and shopping.
Contact Us
The Frankfort – Franklin County Tourist and Convention Commission can assist you in operating your tourism business. Please do not hesitate to call us at 502-875-8687 or come by our office, located at 300 St. Clair St., Suite 102, Frankfort, KY 40601. You may also email us at [email protected]. Our goal is to help you be successful!
