LEXINGTON, Ky. (WTVQ) – The city of Lexington and Airbnb say they have reached a tax agreement allowing the company to collect taxes.
Airbnb says under the agreement, it will start collecting taxes on February 1 under the Lexington Transient Room Tax at 8.5%.
Airbnb says if it were to generate the exact same revenue in 2018 as it did in the last 12 months in Lexington, it would bring in about approximately $240,000 in room tax revenue.
This marks Airbnb’s second tax agreement in Kentucky. In September 2017, the company announced a statewide tax agreement with the Kentucky Department of Revenue that authorized the company to collect the state sales tax on all Kentucky Airbnb bookings, including in Lexington.
The company says in 2017, 400 residents in Lexington shared their homes through Airbnb, earning $3.1 million in supplemental income while welcoming over 27,000 guest arrivals to the city.