A conversation about short-term rental property turned into a referendum against Airbnb for not paying all local transient room taxes authorized by statute in Kentucky.

House Local Government Chairman Randy Bridges, R-Paducah, expressed concern he was hearing from local taxing districts who have not been paid as a representative of the short-term rental property testified in Frankfort on Tuesday.

Airbnb testified before the committee via their lobbyist in Kentucky, Jason Underwood, who said the company wants to centralize the collection of those taxes. The KLC Board of Directors has taken a position to oppose the centralization of local transient room tax revenue collections and support forced compliance of web-based platforms, such as Airbnb, with state law.

On behalf of its member cities, KLC partnered with the Kentucky Travel Industry Association (KTIA) to initiate a lawsuit filed in December of 2023, which asks the Franklin Circuit Court to force Airbnb to comply with House Bill 8. The legislature passed the bill in the 2022 session, requiring such entities to collect and remit transient room tax and pay cities back taxes for properties rented in their jurisdiction.

Bridges said he has short-term rentals, and because the company is not paying taxes in smaller communities, he uses the VRBO platform on his properties. “They don’t have a problem doing it, they’ve figured it out, I think Airbnb should be able to figure it out,” Bridges told Underwood.

Rep. Adam Bowling, R-Middlesboro, also said he is hearing from locals not receiving the tax payments.