AN ACT relating to transient room tax.

Amend KRS 142.400 to impose a 1% statewide surtax on the rental of accommodations when charged by the owner of the property or by a person facilitating the rental of the property and deposit the receipts from the surtax into the affordable housing trust fund; amend KRS 142.402, 142.404, 142.406, and 198A.190 to conform; EFFECTIVE August 1, 2026.

Introduced: March 3, 2026

Last action: March 10, 2026

To Appropriations & Revenue (H)

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This bill would add a 1% statewide surtax on top of existing taxes paid when someone rents a short-term accommodation, whether booked directly through the property owner or through a rental platform. The money collected from this surtax would go into the state's affordable housing trust fund. It would take effect August 1, 2026. Who it may affect: travelers and tourists staying in short-term rentals, property owners who rent accommodations, and online rental platforms that facilitate bookings.

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