Committee hears competing views on short-term rental bill; no vote taken on tax harmonization and preemption measures

The House Local Government committee heard hours of testimony on House Bill 490, a package that combines two principal elements: (1) a harmonization framework to standardize how short-term rental platforms collect and remit local transient occupancy taxes, and (2) preemption language that would limit local ordinances such as conditional-use permitting and density-based restrictions on short-term rentals. After extended testimony from business groups, tourism representatives and municipal officials, the committee did not take a final vote and deferred action.

Airbnb policy lead Vincent Ferlici told the committee the platform supports a harmonized, not centralized, electronic system for collecting local occupancy taxes and said Airbnb could begin collecting in remaining Kentucky jurisdictions “as soon as 30 to 60 days after enactment” if the bill’s uniform forms and electronic-payment rules are in place. Ferlici said: “House Bill 490 removes regulatory and legal uncertainty and confusion for Airbnb and will mean…