Skip to content

Guide for Operating Short-Term Rental Properties

If you are considering being part of the short-term rental business in Lawrenceburg – Anderson County, use this guide to help you invest in the “Distilling Capital of the World.”

What is a short-term rental?

In the Commonwealth of Kentucky, a short–term rental is typically defined as a rental of any residential home unit, accessory building, RV park or campground spot. In Kentucky, the short-term time is defined as under 30 consecutive days.

Such rentals are also sometimes referred to as transient rentals, vacation rentals, short-term vacation rentals, and resort dwelling units.

Entire homes

A rental property can be considered a short-term rental if the owner spends most of the time there but occasionally rents out the whole home for a few days or weeks, up to a maximum number of days per year.

Additionally, if an absentee owner rents out their property for short stays, up to a given number of days per year, that would also be considered a short-term rental.

Rooms

If an owner rents out one or more rooms in their primary home for short stays, up to a maximum number of days per year, that’s considered a short-term rental.

If an owner were to do this but live off-site at a different property, it would still be considered a short-term rental.

Campgrounds and RV Parks

If a property owner rents spaces for any sort of camper (primitive, car, glamping) or for someone to park a unit (trailer, teardrop, fifth wheel, RV) for under 30 days it is considered a short-term rental, regardless of whether the owner occupies or resides on the property for any length of time.

Licensing & Taxes

The information below is meant to assist short-term rental property owners by providing information on the requirements for registering and licensing your property and submitting the required state and local taxes.

City of Lawrenceburg Regulations

If you are renting your room(s), condo, apartment, or home on websites such as VRBO, AirBnB, Home Away, Trip Advisor, etc. you are required to register your rental property each year with the City of Lawrenceburg. You will also need to apply for a Conditional Use Permit at the office of Code Enforcement for the City of Lawrenceburg.

A business license is also required – there are no exceptions, even if you rent your property only a few days each year.

City of Lawrenceburg Tax Requirements

To operate a short-term rental property in the City of Lawrenceburg, you are required to collect and remit the following taxes each quarter:

Timely remittance of these taxes will avoid penalties, interest, and back tax payments.

Anderson County Regulations

If you are renting your, campground, lodge, room(s), condo, apartment, or home on websites such as VRBO, AirBnB, Home Away, Trip Advisor, etc. you are required to register to file for a Conditional Use Permit with the Anderson County Planning & Zoning Department. You are also required to get a business permit which can be obtained at the Anderson County Sheriff’s Department. There are no exceptions, even if you rent your property only a few days each year.

Anderson County Tax Requirements

To operate a short-term rental property in Anderson County, you must be collecting the following taxes:

Who collects what?

VRBO collects and remits Kentucky State Sales Tax (6%) and Kentucky Occupancy Tax Tax (1%) and the Local Transient Room Taxes (3%). Airbnb collects the Kentucky Sales Tax (6%) and the Kentucky Occupancy Tax (1%) but does not collect or submit the Local Transient Room Tax (3%). The property owner is responsible for remittance of any taxes collected through revenues generated by Airbnb or through any direct bookings.

The short-term rental property owner is responsible for submitting a monthly transient room tax form to the local tourism office by the 5th day after the close of each previous business month.
 

About the Lawrenceburg / Anderson County Joint Tourism Commission

The Lawrenceburg / Anderson County Joint Tourism Commission is a Destination Marketing Organization. Our mission is to promote Lawrenceburg and Anderson County to leisure and business travelers, event, meeting and sports planners, and encourage them to visit, dine, shop and stay in our community.

The local transient room tax monies submitted by hotels and short-term rental properties directly funds these marketing and promotion efforts. We produce a Visitors Guide, tear-off Map of businesses, and provide assistance at the Tourism Office in downtown Lawrenceburg. We have an active social media and digital marketing presence at visitlawrenceburgky.com, through our newsletter and on our Facebook and Instagram pages. We run several marketing and PR campaigns throughout the year on multiple channels: print, digital, radio and television.

Contact Us

The Lawrenceburg – Anderson County Joint Tourism Commission can assist you in operating your tourism business. Please do not hesitate to call us at 502-598-3127 or come by our office at 113 South Main Street, Lawrenceburg, KY 40342. You may also email us at [email protected]. Our goal is to help you be successful!