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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
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.

What is the length of stay of STR in the state?

The length of stay for short-term rentals is generally 30 consecutive days or less. This duration is commonly recognized across various local jurisdictions within the state, although some tourist-heavy cities might define it slightly differently, for example, using a 28-day threshold.

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.

Access the latest compliance requirement for your local jurisdictions below

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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