Owensboro looking to crack down on Airbnb tax compliance, citing revenue losses and equity concerns

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.

The revisions to Chapter 16, Article III, Division 4 of the Owensboro Municipal Code include updated definitions, registration requirements, and enforcement mechanisms. The ordinance requires entities receiving rental income to remit the transient room tax and holds hosts accountable if brokers such as Airbnb fail to comply.

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…