Osage County adopts transient guest tax, approves charter cap and begins implementation

The Osage County Commission on Tuesday approved a local transient guest tax and a companion charter resolution that gives the county authority to set higher maximum rates in the future.

The commission adopted Resolution 2025-19 to implement an initial 2% transient guest tax and then approved Charter Resolution C-2025-17 to reserve local authority to cap the tax at a higher percentage; publication and a 61-day protest period will follow before any higher rate becomes effective.

The tax, as described by Colleen Mendoza, Osage County’s economic development director, is “a local lodging tax ... paid for by visitors who are coming into the county, not on our residents.” Mendoza said the revenue is intended to fund tourism promotion activities such as website costs, social media, advertising and creation of events.

Mendoza walked the commission through examples from neighboring counties to illustrate potential revenue: Franklin County (6% rate) yields about $150,000 annually for a county of about 26,000 people, Wabaunsee’s new 4% tax is expected to produce roughly $20,000 in its first year, and Great Bend (6%) generates about $400,000 annually for a population roughly the size of Osage County. Mendoza also said Shawnee County’s 8% rate yields nearly $1 million a year.

County Counselor Josh Nye explained the legal steps. The initial resolution registers the county for a 2% rate so collections can begin for a future quarter. If the commission wants a higher rate (for example, 5% or 6%), the charter resolution establishes a cap and starts a 61-day protest period during which a valid petition can force a referendum. Nye said the Kansas Department of Revenue will collect and remit the tax to the county treasurer; Osage County would retain 98% for local use while 2% is retained by the state Department of Revenue for administration and enforcement.

Commissioners discussed options for a cap. Commissioners expressed support for setting a relatively high charter cap (several commissioners suggested 8% as a maximum) while starting collections at 2% so the county can begin generating revenue for tourism work this fall. Mendoza said she would publish the required legal notice in the newspaper for two consecutive weeks and follow up with letters to short-term rental owners and businesses.

The commission approved both measures in separate votes. County officials said collections would be remitted monthly, reported quarterly to the county treasurer, and would become effective on a delayed schedule to allow filing and accounting changes.

Votes at a glance - Resolution 2025-19: “A resolution adopting a transient guest tax, pursuant to KSA 12-169” — adopted (motion moved; vote recorded as aye, motion passes). - Charter Resolution C-2025-17: “Charter resolution exempting the county of Osage, Kansas from the provisions of KSA 12-1697, and establishing provisions for a transient guest tax” — adopted (motion moved; vote recorded as aye, motion passes). - Other actions at the same meeting (summary): see county-wide votes listed below under “Other formal actions”.

Why this matters Local transient guest taxes are paid by short-term lodging guests (rentals of 28 days or fewer); they are commonly used to fund tourism marketing and events. Mendoza emphasized that the county’s residents are not the direct payers; rather, visitors who rent lodging pay the charge. Commissioners indicated the revenue would be directed to marketing, website development, and event creation intended to increase visitor spending in the county.

Implementation and next steps County staff will publish the required legal notice for two consecutive weeks, post the resolution on the county website, send a letter to short-term rental operators, and coordinate with the Kansas Department of Revenue on registration and remittance. Commissioners set a 61‑day window for the protest period created by the charter resolution; the commission will return after that period to consider a final annual rate (subject to the charter cap) if no valid petition is filed.

Clarifying details recorded in the meeting - Initial, implemented rate chosen for registration/collection: 2% (Resolution 2025-19). - Charter cap discussed: commissioners discussed a cap as high as 8%; several commissioners expressed support for a cap in the 5–8% range. The commission approved the charter resolution to establish authority for a cap (C-2025-17). - Exemptions: the county will not apply the tax to rentals lasting more than 28 days or to rooms paid directly by the federal government. - Distribution: commission noted the typical distribution is 98% to the local entity and 2% retained by the state Department of Revenue for administration. - Timeline: staff indicated collections could begin for the fourth quarter after registration and the necessary administrative steps; a 61-day protest petition period was referenced for charter adjustments.

Ending Commissioners said they expect the new revenue to support tourism promotion work already included in the 2026 economic development budget. Mendoza said she will circulate follow-up materials to commissioners and to short-term rental owners and will return to the commission after the 61-day period with any required next steps.