Kansas vacation rental tax guide

With a bounty of popular destinations including Kansas City, Wichita, and Dodge City, the Sunflower State offers ample opportunity for short-term rental (STR) businesses.

But new income opportunities bring new tax implications, and STR stays in Kansas may be subject to lodging taxes. Failure to comply with state and local tax laws can result in fines and penalties. Tax jurisdictions are increasingly making STR tax compliance a priority, so it’s important to address compliance before tax authorities address it for you.

Avalara MyLodgeTax put together this guide to help you comply with Kansas lodging tax laws at the state level. For more information on the tax rates and jurisdictions that apply to your rental’s specific location, use our lodging tax lookup tool.

No lodging tax guide is a substitute for professional tax advice. Consider this an asset to help you understand and prioritize your STR questions and concerns. Questions pertaining to specific situations or out-of-the-ordinary conditions are best solved with a certified tax professional familiar with Kansas tax laws.

Lodging taxes are calculated as a percentage of the cost of your guest’s stay and added to the price on the bill. The guest pays the tax, but the STR operator is responsible for collecting and paying it to the proper tax authority.

What’s the definition of “short-term rental” in Kansas?

In Kansas, state and local sales tax is collected on the rental of rooms by hotels, which are defined as lodging units with at least four sleeping rooms available for rent to the general public. The rental of sleeping rooms is subject to sales tax regardless of the length of stay.

Sales tax also applies to the rental of rooms by “accommodations brokers,” which are defined as having an inventory of two or more rooms in one or more locations for rent. An accommodations broker’s receipts are subject to sales tax regardless of the length of stay.

County or city transient guest taxes may also apply. Transient guest tax applies to rental establishments with more than two bedrooms. Accommodations brokers must collect any applicable transient guest tax on their sleeping room rentals, even though they may only have two or more rooms. Transient guest tax is not collected on rooms rented for more than 28 days to the same person or entity.

“Marketplace facilitators,” which include marketplaces such as Airbnb and Vrbo, must collect sales and transient guest tax for stays of 28 days or less they facilitate for accommodations that do not meet the definition for hotel rooms.

Who’s required to collect and file lodging taxes on short-term rentals in Kansas?

If you collect payment from short-term guests renting out a room, apartment, house, or other dwelling, you may be responsible for collecting, filing, and remitting lodging taxes to Kansas tax authorities.

Location is key to compliance

The location of your rental is a crucial piece of information for lodging tax compliance. Your address determines which tax jurisdictions you’re required to report to, which taxes you need to collect, and the appropriate tax rates.

Use our lodging tax lookup tool to get a rate report specific to your Kansas rental’s address. The report includes the estimated total tax rate to collect from guests, number of required registrations, number and frequency of returns per year, and minimum number of rented days to qualify as a taxable stay.

It should be noted that tax rates and the rules governing them change frequently. Please consider your tax rate report to be informative rather than authoritative.

Local short-term rental regulations

STR operators in Kansas should be aware of the local regulations that apply to them, including rules covering:

• Legality
• Permits, licenses, and registration
• Zoning
• Advertising
• Neighborhood notification
• Building and housing standards

Homeowner associations (HOAs), condominium communities, co-ops, and landlords may also have specific rules regarding vacation rentals. It’s your responsibility to be aware of STR policies that apply to your property.

Before you can begin collecting taxes on your STR in Kansas, you’re legally required to register with the Kansas Department of Revenue. You can register online to receive an account number and a Certificate of Registration.

Once you’ve registered with tax authorities, you’re ready to start collecting lodging taxes, which you’ll add to your guest’s bill when they pay for their stay.

Which lodging taxes apply to Kansas short-term rentals?

In Kansas, a number of different lodging taxes may apply to your short-term rental, depending on your location. These can include:

Tax rates

Before you can begin collecting lodging taxes, you need to know the correct rate to charge to avoid compliance issues. Our lodging tax lookup tool can give you a rate report specific to your Kansas address. 

What charges are taxable?

In Kansas, all charges to transient guests for sleeping accommodations are subject to sales and transient guest tax. This includes items such as cleaning fees, pet fees, rollaway bed fees, extra person fees, etc. Deposits that are returned to the guest are not subject to sales tax. Separately stated charges for incidental services may be subject to sales tax but not transient guest tax.

What happens when my short-term rental marketplace (such as Airbnb or Vrbo) collects lodging taxes for me?

In Kansas, STR marketplaces are required to collect sales and transient  guest taxes from guests when accommodations that don’t meet the definition of “hotel” are paid for. If taxes aren’t being collected for you, you’re responsible for collecting and remitting them to state tax authorities.

Are guests ever exempt from lodging taxes?

There are situations in which you aren’t required to collect lodging taxes in Kansas. For example, rentals of more than 28 days or rentals paid for directly by the federal government are exempt from transient guest tax.

Direct purchases of accommodations by tax-exempt entities, including federal and state governments and nonprofit organizations, may be exempt from sales tax. Exemption certificates are required.

After you’ve collected taxes from your guests, it’s time to file your tax returns with the Kansas Department of Revenue. In Kansas, you can file returns and pay the tax amount due online.

When do I need to file my returns?

You’ll be assigned a filing frequency and due dates when you register with the tax authority. For filing with the Kansas Department of Revenue, state sales tax and local transient guest tax due dates are as follows:

I didn’t rent my property during this filing period. Am I still required to file a lodging tax return with the Kansas Department of Revenue?

Yes. STR operators registered with the Kansas Department of Revenue are required to file returns each assigned filing period, regardless of whether you had any STR income or collected lodging taxes. Such returns are commonly known as “zero dollar returns.” Local tax authorities may have their own requirements.

Are there penalties for filing taxes late?

Whether you choose to offer STRs through a marketplace like Airbnb or Vrbo, or directly to guests, you open the door to tax liability. As tax revenue is a major source of local funding, tax authorities are becoming more aggressive in their efforts to identify individuals and businesses not in compliance with tax laws. Failure to register with tax authorities and file lodging tax returns in Kansas on time may result in late fees, interest payments, and in extreme cases, legal action.

I’ve been offering short-term rentals without collecting lodging tax. What options do I have?

If you’re already operating an STR but not collecting lodging taxes, you may be in violation of Kansas tax laws. Take the time to review your legal responsibility (with a tax professional, if necessary) and understand the risk of continuing to not collect tax.

STR operators in Kansas may be able to take advantage of a voluntary disclosure agreement (VDA). A VDA offers an opportunity for operators to proactively disclose prior period tax liabilities in accordance with a binding agreement with the Kansas Department of Revenue. VDAs are offered to encourage cooperation with state tax laws and may result in some or all penalty and interest payments being waived.

Are there options for outsourcing lodging tax filing?

Yes. Many short-term rental hosts in Kansas file several state and local lodging tax returns every year. Filing solutions such as Avalara MyLodgeTax can relieve this burden.