Airbnb Payment of Local Transient Room Taxes

Initiating a Voluntary Tax Collection Agreement (VCA) with Airbnb

Any Kentucky jurisdiction that has a local transient room tax and is interested in establishing a voluntary tax collection agreement (VCA) through which Airbnb will pay the local transient room tax on behalf of local Airbnb hosts should take the following steps:

E-mail [email protected] to request an agreement and include:

    • Tax ordinance establishing the local transient room tax, and
    • Short-term rental-related ordinance(s) (if any)
    • Copy [email protected]

KTIA also suggests copying President & CEO Hank Phillips so that KTIA can monitor progress.

CVBs are encouraged to consult with local officials about pursuing these agreements and actively participate and assist with the process.

Once the email and related documents have been submitted, according to Airbnb the request will be placed in a queue for review.  Airbnb notes that they receive a number of VCA requests from around the country - and at times international locations - so it is difficult to provide a specific response/completion time. 

Viviana Jordan, who has served as KTIA’s primary Airbnb contact, will assist in tracking requests from Kentucky.

What to Expect

Based on KTIA research and observations, and noting that no two situations are likely to be exactly the same, here are some points regarding Airbnb VCAs:

  • As suggested above, reaching an agreement will not occur immediately and may take a period of time.
  • Airbnb does not disclose the name and locations of their local hosts and an agreement will indicate that the tax will be paid in the aggregate.
  • There are likely to be other stipulations by Airbnb that relate to audits, agreement termination and other matters.


Contact Hank Phillips at 502.223.8687 with any questions.