Owensboro approves changes to transient room tax ordinance to clarify collection responsibilities

The Owensboro Board of Commissioners on Dec. 17 approved Ordinance 19‑2024 on second reading, amending chapter 16, article 3, division 4 of the Owensboro Municipal Code to clarify definitions, registration requirements and who is responsible for collecting transient room tax from hotel operators and short‑term rental platforms.

City Manager Nate Pagan summarized the change as a response to nearly two years of experience collecting the tax, saying the revisions aim to "better identify the party responsible for collecting and remitting that tax," including rentals brokered online. Pagan told the commission that at least one online service has not been complying with the ordinance and the amendments are intended to make responsibility and deadlines clearer.

The ordinance amends several code sections (including revisions to section 16‑70.35, 16‑70.38 and 16‑70.39) to define taxable lodging types, set permissible uses of transient room tax revenue and establish registration and compliance timelines. The city indicated the amendments set a clearer compliance deadline but did not disclose enforcement steps in the meeting.

During the roll call, Commissioners Pam Smith Wright and Sharon Neesmith recorded “aye.” Mayor Tom Watson and Mayor Pro Tem Mark Caslin indicated yes; Commissioner Klim also recorded a yes. With those votes the ordinance passed on second reading.

The measure carries the municipal code citations discussed at the meeting; staff said the city will continue outreach to lodging providers and short‑term rental platforms to implement the clarified rules.

The city clerk recorded the vote and the ordinance passed at the Dec. 17 meeting. No effective‑date language beyond the reading was presented in the discussion.