FRANKFORT, KY – Airbnb, the world’s leading community driven hospitality company, announced that it collected and remitted over $700,000 in revenue to the Commonwealth of Kentucky in the first six months of its historic tax agreement. In September 2017, Airbnb and the Kentucky Department of Revenue announced a tax agreement authorizing the company to collect and remit the state sales tax (6%) and the state transient room tax (1%) on behalf of its Kentucky hosts. That agreement took effect on October 1, 2017.
The September announcement noted that based on the state sales tax alone, if Airbnb bookings to Kentucky were to replicate that of the previous 12 months, it would mean $1 million in revenue to the Commonwealth. The $700,000 remittance in just six months suggests the revenue is already far outpacing that projection. While Airbnb has partnered with over 370 local governments throughout the U.S. to collect and remit taxes [1] — including neighboring states like Tennessee and Illinois — this marked the company’s first tax agreement within Kentucky. This agreement with Kentucky DOR solely covers taxes administered by the Commonwealth
Following the Commonwealth of Kentucky announcement, Airbnb and the City of Lexington announced an agreement authorizing Airbnb to collect and remit the 8.5% Lexington Room Tax, which took effect February 1. And most recently, Airbnb and Louisville Metro announced an agreement authorizing Airbnb to collect and remit the 8.5% Louisville Transient Room Tax. That agreement took effect on April 1 — allowing collection to begin well prior to the Kentucky Derby.
Kentucky is currently experiencing dynamic home sharing growth. Airbnb recently announced that its Kentucky host community earned $19.2 million in supplemental income in 2017 while welcoming 166,000 guest arrivals. In addition to the significant source of tax revenue, home sharing delivers value throughout the commonwealth, including a $3.5 million impact for Louisville as hotels sold out for the 2017 Derby. Lexington hosts significantly expanded lodging capacity and offered affordable homes for parents during UK’s college commencement. And more rural areas of the state saw a massive influx during the August eclipse.
What follows is a city by city overview of the top 20 home sharing markets in Kentucky from 2017:
City |
Total 2017 Guest Arrivals |
Total 2017 Host Income |
Louisville |
78,080 |
$10 million |
Lexington |
27,630 |
$3.1 million |
Covington |
5,230 |
$489,000 |
Bowling Green |
3,840 |
$391,000 |
Stanton |
3,310 |
$370,000 |
Bardstown |
2,620 |
$257,000 |
Paducah |
2,600 |
$261,000 |
Berea |
1,760 |
$117,000 |
Nicholasville |
1,580 |
$185,000 |
Murray |
1,470 |
$129,000 |
Williamstown |
1,300 |
$98,000 |
Frankfort |
1,250 |
$137,000 |
Newport |
1,140 |
$123,000 |
Prospect |
1,100 |
$150,000 |
Somerset |
1,100 |
$118,000 |
Taylorsville |
970 |
$134,000 |
Cadiz |
960 |
$106,700 |
Bellevue |
850 |
$73,000 |
Danville |
850 |
$87,000 |
Leitchfield |
800 |
$95,000 |
Founded in 2008, Airbnb is a global travel community that offers magical
end-to-end trips, including where you stay, what you do and the people
you meet. Airbnb uniquely leverages technology to economically empower
millions of people around the world to unlock and monetize their spaces,
passions and talents to become hospitality entrepreneurs. Airbnb’s
accommodation marketplace offers access to millions of places to stay in
more than 191 countries, from apartments and villas to castles,
treehouses and B&Bs. With experiences, people can see a different side
to a destination through unique, handcrafted activities run by locals,
while a partnership with Resy provides access to the best local
restaurants in selected countries. All of this is brought together in
one easy-to-use and beautifully designed website and app.