‘Taxed to extinction’: State bill aimed to protect short-term rentals delayed, fears rise

KANSAS CITY, Mo. (KCTV) - Unease is growing for short-term rental owners in Kansas City as a bill aimed to protect them might not be brought to the Senate floor, which also limits where tourists can stay ahead of the World Cup.

HB 1086 would protect property owners like Laura Williams.

The bill would stop assessors throughout the state from reclassifying short-term rentals from personal property to commercial. Something that would dramatically increase property taxes.

It’s something that cities like St. Louis and Branson have already implemented, having an almost immediate effect, wiping out several short-term rentals.

Owners like Williams are also worried this could limit housing opportunities for future tourists coming into town.

“We want to be a part of the World Cup. We want to be around. We want to provide housing for all the tourists and guests that are going to be here,” Williams said.

Williams said their taxes could double or triple, ultimately forcing her to either increase her rates or close down shop.

“We feel like it’s pretty much going to tax us to extinction, where we can’t even exist. Because the profit margins on these places is very thin,” Williams explained. “We’re not a hotel, we can’t do commercial enterprises. I can’t have a hair salon in the basement.”

Williams explained she’s already spread thin between current tax practices and upkeeping her six properties. However, it’s not a burden she’s carrying, but rather a lifeline. She said her short-term rentals are her full-time job and her only source of incoming, also taking care of her 74-year-old mom.

“For both of us, it’s a family thing. I know a lot of short-term rental owners got into doing this for their family ,” she said.

Bill sponsor State Representative Chris Brown spoke with KCTV5, saying he’s unsure why the bill hasn’t hit the Senate floor. He said it’s common for new bills like this to take a little longer to become law.

“It’s not unusual. I mean, sometimes it takes two or three years or more before something gets done. I am still optimistic,” Rep. Brown said.

Missouri Senate Majority Leader Tony Leutkemeyer still hasn’t brought the bill to the floor. KCTV5 emailed and called his office to ask him why, but never heard back from him.

The Senate’s session ended abruptly on Wednesday, meaning the bill will likely be brought again next year.

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