Short-Term Rental Compliance in Missouri

State Regulation

Missouri, with its blend of urban and rural attractions, presents significant potential for short-term rentals. Urban centers like Kansas City and St. Louis offer cultural and historical landmarks, appealing to city explorers and business travelers, while natural wonders like the Lake of the Ozarks and the Ozark Mountains attract outdoor enthusiasts. The state's renowned wine regions and historic sites, including Route 66, further diversify its appeal. Missouri's central U.S. location and variety of festivals bolster rental demand, but potential investors must consider varying local regulations and market conditions, which are crucial for successful ventures in the short-term rental market.

Is there a statewide definition of STR?

There is no uniform statewide definition of short-term rentals. Generally, rentals of 30 days or less are considered short-term across most local jurisdictions, although some areas may use a slightly different threshold, like 28 days. The regulations governing short-term rentals are primarily set at the local city and county levels, not statewide. This means that requirements for permits, zoning, safety standards, and taxation can vary significantly depending on the specific location within Missouri. For anyone considering operating a short-term rental in Missouri, it's crucial to research the specific local ordinances that apply to their area.

Statewide Registration Requirement

In Missouri, the regulations for short-term rentals (STRs) vary significantly by locality, and there isn't a single statewide registration requirement that applies uniformly across all cities and counties. Each city or county in Missouri has its own set of rules and requirements for STRs, which can include zoning laws, occupancy and safety standards, taxation, licensing, and insurance requirements. For instance, in Kansas City, hosts of STRs are required to register their properties and meet certain requirements before they can legally operate their rentals. These requirements include obtaining proof of possession of the property, registering for relevant state and local taxes, and ensuring compliance with local fire safety and building codes. Additionally, Kansas City mandates that each STR must have a specific short-term rental account set up for tax purposes.

Moreover, Kansas City has established a baseline for liability insurance coverage for STRs. Every STR must have an insurance policy with a minimum coverage of $300,000. This requirement is part of the city's efforts to ensure financial protection for property owners in the event of injuries or property damage occurring during a rental period.

Local jurisdictions in Missouri also require adherence to various codes covering safety, sanitation, zoning, and more. For instance, most jurisdictions mandate the installation of smoke detectors, fire extinguishers, and carbon monoxide detectors, as well as compliance with local health and sanitation regulations.

Regarding taxes, hosts need to collect and remit a 4.225% state sales tax on short-term lodging statewide. In addition, some tourist destinations in Missouri charge their own local taxes on STR transactions. For example, Kansas City imposes a 7.5% local accommodation tax on all STR bookings on top of state taxes.

It's crucial for hosts to be aware of and comply with the specific regulations of the locality where their rental property is situated. Failure to adhere to these regulations can result in penalties, which can include fines and potential misdemeanor charges for repeat violations.

Statewide Tax Requirement

In Missouri, short-term rentals are subject to various taxes, including state and local sales taxes, tourism taxes, and local lodging taxes. The specific tax rates and requirements depend on the location of the rental property. Hosts are responsible for collecting these taxes from their guests and remitting them to the appropriate tax authorities. Additionally, hosts must register with the Missouri Department of Revenue and potentially with local tax authorities. The definition of a short-term rental in Missouri typically includes any reservations of up to 30 consecutive days. It's important to note that certain tax exemptions may apply under specific circumstances.

Is there any other state-wide requirement?

In addition to the local requirements discussed earlier, there are statewide requirements that short-term rental (STR) hosts in Missouri must comply with, particularly regarding taxation:

Missouri State Sales Tax: All STR hosts in Missouri are required to collect and remit a state sales tax of 4.225% on short-term lodging. This is a statewide requirement and applies to all short-term rental transactions regardless of location within the state.
State and Local Income Taxes: Gross rental revenue from STRs is subject to Missouri income tax. In some areas, such as Kansas City and St. Louis, local income taxes may also apply. Hosts must report their rental revenue accurately for tax purposes.
Local Lodging Taxes: While not a statewide mandate, it's important to note that many popular tourist destinations in Missouri impose their own local taxes on STR transactions. For example, Kansas City has a 7.5% local accommodation tax, and Branson has a 7.125% lodging tax on vacation rental stays. These are in addition to the statewide sales tax.

These requirements emphasize the importance of understanding and adhering to both local and state-level regulations for anyone operating or considering operating a short-term rental in Missouri. Failure to comply with these tax regulations can lead to penalties and legal issues. Hosts should ensure they are registered for the applicable taxes and meet all reporting and remittance deadlines.

Missouri

Disclaimer

Get started for free in 10 minutes