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.