The City of Owensboro is stepping up efforts to collect transient room taxes from short-term rental platforms such as Airbnb, citing significant revenue losses and fairness concerns. In a move to tighten compliance, City officials discussed amendments to the transient room tax ordinance during a meeting on Tuesday, highlighting enforcement tools and clarifying responsibilities for rental hosts and brokers.
Owensboro established the transient room tax in 2022, imposing a 4% tax on short-term rentals, while Daviess County Fiscal Court imposed a 6% tax. City of Owensboro Finance Director Angela Waninger explained the City has struggled to collect taxes from Airbnb, which has yet to respond to communication attempts.
Mark Calitri, president and CEO of Visit Owensboro, highlighted the importance of ensuring fairness and capturing revenue from Airbnb rentals.
“Owensboro is an events town,” Calitri said. “People stay here for sports tournaments, conventions, and economic development activities. We’re creating the demand for these rentals, so it’s only fair that transient room taxes apply to Airbnbs just like hotels.”