Airbnb/VRBO Fact Guide

Airbnb

o   Aircover

  • $1M liability insurance

  • $1M damage protection

  • Pet damage protection

  • Deep cleaning protection

  • Income loss protection

  • 14-day filing window

  • Quicker reimbursement

  • Faster track for Superhosts

  • Hosting Resources

  • Ask a Superhost

  • Allows you to get input and advice from an experienced host

  • Personalized tips on how to upgrade your guest’s experience

  • Price preview for Hosts allows you to see how your price appears to guests

  • Hands-on listing help

  • Improved photo uploader

  • Short stay cleaning fee options

  • Pet fee options

VRBO

o   Protections

$1M primary liability insurance

o   Pricing support to make sure you are competitive

o   24/7 property owner support 

Taxes

o   Airbnb’s/VRBO’s are transient retail businesses and will be taxed accordingly.

o   Non-profits that hold and operate an Airbnb/VRBO are also subject to all following taxes.

o   Airbnb/VRBO automatically charges

6% for KY State Sales Tax

1% for KY State Transient Tax – KRS Chapter 142 – Section 400

o   You are responsible for directly paying:

3% for Letcher County Transient Tax

Local Transient Tax is payable at:

Letcher County Fiscal Court 

Attn: County Treasurer

156 Main St., Suite 107


Whitesburg, KY 41858

Impact of local transient taxes

Local transient taxes assist Letcher County directly

These taxes alone are what fund Letcher County Tourism and the great work that is being done to make Letcher County a beautiful place to visit. 

These things include:

  • Pine Mtn. Overlooks

  • Jenkins Overlook

  • Tanglewood Trail

  • Motorsports events

  • And much more!

This 3%, shared among each overnight stay owner, helps make Letcher County more marketable to keep your small business successful and gives visitors a reason to come back again and again.

From Kentucky Dept. of Revenue:

KRS Chapter 142 - Section 400 creates a transient room tax (lodging tax) at the rate of 1 percent of the rent, on every occupancy of any suite, room, rooms, or cabins charged by all persons, companies, corporations, groups, or organizations doing business as motor courts, motels, hotels, inns, tourist camps or like or similar accommodations businesses (excludes campgrounds).

The state transient room tax is in addition to the current 6 percent sales tax, AND any locally assessed transient room tax, and will be reported separately each month.