Taxes Louisville, KY

[Andreina0]

Hello all,

In the city of Louisville, Kentucky. After much research I found the correct information regarding hosting fees, collecting taxes from guests and reporting to the Louisville Metro Revenue Commission. Here are the steps to follow:

STEP 1:

Every host must file a 'Short Term Rental' application with the Louisville Online Permiting Portal, and process the payment of $25 which is valid for one year. Here is the link to access the Online Application . Make sure to register an online account with all the details pertaining the property. Contact telephone number is (502) 574-3321 they can guide you through if you get stuck (like I did)

STEP 2:

Register a new business with the Louisville Metro Revenue Commission in order to report the Monthly Transient Room Tax for Jefferson County. This tax should be charged directly to the guests. You don't have to have a company registered, you can register your business as an individual tax payer.

STEP 3: When you register the new business, contact the Louisville Metro Revenue Commision over the phone (502) 574-4860 and once they verify your account they will email you the Transient Room Tax Return form with your business information pre-printed and that's the tax form that you should submit monthly.

That's all the information that I gathered, I hope this conversation helps.

Cheers!

[Zacharias0]

You're very fortunate your fee is so minimal and the process is easy. In Vegas, the city council is pushing through a orindance that has so much red tape it makes you wonder if they are trying to get rid of us or help the public for the sake of safety? Of course, the city is screaming the sky is falling, but there have been no reports of anyone being harmed under the current state of how we all operate.

[Haley15]

Hi Andreina & Rosie,

I have a question pretaining to the taxes - is the $25 dollar annual fee the only amount you have to pay up front for the hosting fees? I have suspended my rooms due to being completely lost and confused. I wanted just a little bit more information before I started your steps below.

Thanks!

Haley

[Andreina0]

Yes, we paid $25 to register it and that’s a once a year fee. We also pay the 8%/month of the revenue we make. I login and pay it.

Now, I got a letter from the city revenue commission that I also need to write down and mail the physical paper to the which should coincide with what I pay online. 

[Deirdre2]

If you are simply deducting 8% of your revenue and turning that in as the transient tax, you are not in complaince with the law.   The law states that you are to collect 8.5% from the guest on top of rent.  The consumer must be made aware of the total tax amount.  Until Airbnb begins collecting the LMT tax, you should be, after booking, billing the guest 8.5% either thru the Airbnb app or directly.  For example, if the booking is for $100, you should bill the guest $8.50.

[Nj0]

Is this 8.5 % different from the occupancy tax that Airbnb is currently collecting and remitting to The Louisville Metro Revenue Commission (LMRC) ??

Few days ago I got an email regarding the upcomming penalties for those who has not started registering and paying this? Is this a serious thing?

[Bertil16]

I am here in Louisville and getting letters from Metro Revenue Commission. I sent in the monthly tax forms indicating that Airbnb is sending the tax in on my behalf directly to MRC as I understand it. Even so, now MRC is billing me for taxes due. Something doesn't doesn't seem to work correctly. 

I have corresponded with MRC but I don't have all the answers back from them yet.  It has consumed quite a bit of time to keep up with this. I am wondering about a few things. 

What is the experience of some of you? Is it something I don't understand?