‘The city has to take the lead’ Kansas City leaders say work on short-term rentals is far from over

KANSAS CITY, Mo. — The day after passing ordinances putting two questions on April’s poll asking voters to impose charges and taxes on short-term leases, Kansas Metropolis, Missouri, leaders held a press convention the place they pledged to do extra to guard neighborhoods.

Quick-term leases are properties, or rooms inside properties, which homeowners checklist for lease for fewer than 30 days at a time; usually utilizing trip rental websites like Airbnb and Vrbo to promote the rental.

Kansas Metropolis requires property homeowners to get a allow to function a short-term rental and pay a allowing payment.

A metropolis audit nonetheless revealed solely about 10% of operators are correctly permitted, leading to a lack of about $1.1 million in allowing charges for the reason that program started in 2018.

These charges fund enforcement and different regulatory features associated to short-term leases.

At the moment, town doesn’t acquire a conference and tourism tax, nor a lodging payment from short-term leases prefer it does from resorts and motels, despite the fact that the 2 entities present mainly the identical companies.

The 2 initiatives which is able to seem on April’s municipal election ask voters to approve town’s plan to gather the 7.5 p.c conference and tourism tax on short-term leases.

Voters will even give approval for town to lift its lodging payment from $1.50 per bed room, per occupied evening to a most of $3. Inns and motels would additionally acquire the elevated lodging payment, which has not seen a rise since 2004.

The lodging payment and tourism tax are handed on to company, and operators don’t pay these taxes.

Metropolis workers estimates the 2 adjustments would generate $13 million for town in over 5 years. The cash from it might go towards advertising and marketing and tourism efforts in addition to imposing rules on short-term leases.

“The town has to take the lead on making the foundations and ordinances occur for us,” stated Amy Johnson, who lives within the Columbus Park neighborhood of Kansas Metropolis.

This week, The Columbus Park Group Council despatched a letter to town asking it to ramp up its regulation and enforcement efforts. It suggests stopping all short-term leases from working till town can change its guidelines. Metropolis council member Eric Bunch hasn’t dominated out the thought.

“What I feel a moratorium does do is it sends a message we have to pump the brakes on this system just a bit bit simply to make sure we will get our geese in a row to make sure the coverage is correct,” Bunch stated.

He and different council members are engaged on new ordinances to punish short-term rental homeowners for itemizing their properties on trip rental websites until they’ve a allow with town.

One other advice town is exploring is easy methods to set up communication with trip rental websites to forestall them from itemizing properties which don’t have the suitable permits.

With the NFL Draft coming to Kansas Metropolis in April, demand for short-term leases can be excessive. Mayor Quinton Lucas stated town is not going to lose monitor of residents within the course of.

“As we take a look at huge occasions just like the NFL Draft, just like the World Cup, we’re additionally taking a look at daily neighborhood considerations,” Lucas stated.

Voters will head to the polls April 4, 2023. The town council will determine when the brand new guidelines ought to take impact if voters approve the poll measures.