Regulation of short-term rentals (STRs) could soon become a reality in Lexington.
Earlier this week, the General Government and Planning Committee passed a resolution (voted on unanimously) that would begin changing city ordinances pertaining to STRs. They also passed a motion to update zoning regulations.
The zone text amendment has now been moved to the city council agenda and is expected to be voted on later this month. A full breakdown of zoning amendments is available via the Committee .
Facts
Through partnerships with STR platforms like Airbnb, Expedia, and VRBO, Fayette County collects local hotel taxes. In 2021, that number was $970,000. That money goes to VisitLex , and towards the debt from the $350 million Central Bank Center expansion, reports the Herald-Leader .
The proposed changes were created by a Lexington Fayette Urban County Government workgroup — which included members of city council, the division of planning, the department of revenue, and research analysts. There are four key components to the draft proposal —
- Fees
- Structure Licensing
- Enforcement and Appeals
- Zoning Regulations
Between March 2022 and February 2023, the workgroup held a total of 15 meetings with STR owners and residents of neighborhoods with a higher number of STRs. This provided a platform for open dialogue + feedback, which helped draft the changes.
Proposed changes
- An annual $200 license fee for one property + $100 annually for each additional property
- Report annual number of stays
- Maximum of 12 guests per property
- Owners that host on platforms other than those listed above will remit hotel taxes to the city.
- Increased regulation of where and what types of STRs are allowed
A final vote isn’t expected until the summer.