The Kansas City, Missouri, Auditor's Office has issued an audit on the effect of short-term rentals on the city's convention and tourism (C&T) taxes and fees. According to the audit, the city would have accrued an estimated $2.28 million in C&T taxes between July 2021 and August 2022 if assessment and collection from short-term rentals was possible, while about $354,000 in hotel, motel occupancy fees would have been collected over the same period. Kansas City's ability to assess and collect C&T taxwa on short-term rentals hinges on the state legislature revising state law in alignment with other Missouri cities. The Kansas City Council could set up an occupancy fee for short-term rentals with voters' approval. The audit calls on the mayor and City Council to maintain their legislative priority to alter the statute that limits the city's ability to tax short-term rentals like other accommodation businesses, and suggests they assess a Hotel, Motel Occupancy-type fee on such establishments.
KSHB-TV 41 (11/29/22) Dre Bradley