Short-term rentals in Lawrence, explained properly.

Under Sec. 6-1356(c) the application must name a resident agent in one of two ways. An owner with a local address, within 40 miles of the City, may appoint a person or management company, also within 40 miles, as resident agent. An owner without a local address within 40 miles must appoint a person or management company located within 40 miles to serve as resident agent. The agent must have written, express and actual authority to receive communications, service of process, summons, notices and other legal process for the owner, and an agent who signs the application must provide the owner's written, notarized authorization.

Sec. 6-1361 says all short-term residential rental property is inspected by the code official at the time of licensing and, thereafter, biennially. The owner pays the inspection fee, as set in the City fee schedule (not read for this page), with the application or renewal in an inspection year, and must contact Planning and Development Services during the month of licensing or renewal to schedule it. The inspection checks compliance with the property maintenance code and all other applicable City codes. Under Sec. 6-1364 a violation of the property maintenance code (Chapter 9, Article VII) or other City codes is a violation of the division, and the code official may grant alternate compliance only if it is possible and does not reduce life, health, safety or fire safety requirements. A violation of Sec. 6-1364(a) requires a re-inspection. The City may enter after 72 hours' written notice (Sec. 6-1363). A missed or refused inspection carries an administrative fee set in the fee schedule unless rescheduled on at least seven days' notice (Sec. 6-1362).

Sec. 6-1358 says the license is issued on City planning and development services letterhead with the license number, licensee name, property address and expiration date. The licensee keeps it on the premises, if possible, or at the licensee's principal place of business, and makes it available on request to any transient guest or the code official. The license issued by the department must be displayed on all listing platforms for which the property is advertised for rent.

Sec. 6-1365 says that, unless exempted by an approved site plan or as otherwise provided, occupancy limits for dwelling units on short-term residential rental property in each zoning district are those established in Sec. 20-601(d) of the land development code, and minor children are not included in the occupancy count. Exceeding the limit is unlawful if done knowingly (Sec. 6-1371(e)). The numbers in Sec. 20-601(d) were not read for this page, so none are stated here.

Sec. 6-1359 makes the license valid from issue until 11:59 p.m. on December 31 of the then-current year. Under Sec. 6-1360 the code official mails the renewal notice by November 1 of each year, and before December 1 the licensee must submit the renewal stub, the annual license fee and, if the property is scheduled for inspection that year, the inspection fee, and the dwelling units must have passed the most recent inspections unless exempt. Failure is grounds for denial of renewal, which can be appealed within 14 days to the building code board of appeals.

Sec. 6-1356 requires the application to Planning and Development Services, on the department's form and completed in full, to give the addresses of the short-term residential rental properties; the owner's name, address, telephone and e-mail; resident agent information (see the resident agent rule); a statement that the owner, resident agent or an employee will not discriminate in renting on the basis of race, color, sex, religion, national origin, ancestry, disability, sexual orientation, sexual identity, gender identity or age; and the signature and date of the owner or resident agent.

Sec. 6-1371 makes it unlawful to rent without a current, valid license; to own or operate more than three short-term residential rental properties; to own or operate a non-owner-occupied rental in an R-1, R-2 or PD district; to rent a property that does not comply with the property maintenance code and other City codes; and to knowingly exceed the occupancy limit. Under Sec. 6-1372 each unlawful act is a separate municipal offense, and on a finding of guilt or a no contest plea the fine is a minimum of $500.00 and a maximum of $2,500.00 for each unlawful act. The municipal court judge has no authority to suspend all or any part of the minimum fine for a conviction under Sec. 6-1371(a) or (c), and may order compliance with the article.

A notice of violation (Sec. 6-1366) states the condition, whether the code official seeks remediation, probation or revocation, and that the licensee has 14 days to appeal. Appeals go to the building code board of appeals within 14 days of a notice of denial or violation, with a docketing fee set in the City fee schedule (not read), and a timely appeal stays administrative enforcement absent exigent circumstances (Sec. 6-1367). The board's final order can be appealed to the district court under state law. Probation may include reporting requirements and time to remediate, and failure to complete it is grounds for revocation (Sec. 6-1368). Revocation takes effect immediately, and no license is then issued for the property (Sec. 6-1369). A person with more than three revocations is a habitual violator, loses the privilege to operate any property as short-term residential rental property in the City, and all applications and renewals are denied (Sec. 6-1370).

The Kansas Department of Revenue guide for hotels, motels and restaurants (KS-1540) gives the current state sales tax rate as 6.5% and says counties and cities may add a local sales tax; retailers collect the combined rate. For sales tax, the guide counts a bed and breakfast, cabin camp, hotel, motel, tourist cabin or court, and any other lodging unit with at least four sleeping rooms available for rent to the general public as a hotel, and it counts a business that keeps an inventory of two or more rooms in one or more locations offered for pay as an accommodation broker. It says sales tax applies to the rental of sleeping rooms regardless of the length of stay, including stays of more than 28 consecutive days. Which of these descriptions fits a particular host depends on how many rooms are offered and on how the rental is run; confirm with the Department of Revenue. The saved copy of the guide ends with the revision mark 02-21 and a newer revision was not found, so the rate and room counts are marked for review. Local sales tax rates and the treatment of booking platforms were not read for this layer.

Some Kansas cities and counties charge a transient guest tax on top of sales tax. The Department of Revenue says it applies when more than two bedrooms are furnished for guests and the room is rented for 28 consecutive days or less, and that the local rate comes from the city or county clerk. Kansas law lets counties impose the tax, and lets cities impose it if the county has not; the guide says a county and a city in it are generally barred from both imposing it. The tax is collected by the lodging operator and remitted to the Department of Revenue, which returns 98% to the city or county for promoting tourism and keeps 2% for its costs. Accommodation brokers with two or more rooms must also collect it. The guide lists only two exemptions: a direct purchase by the federal government, and a room rented to the same guest for more than 28 consecutive days. Whether and at what rate a given city or county has imposed the tax was not read for this layer.

K.S.A. 12-1693 lets the governing body of a county with a population of more than 300,000, or of a city in such a county, levy a transient guest tax at a rate of not more than 2% on gross receipts from transient guests for sleeping accommodations in a hotel, motel or tourist court. The tax may not be levied until a resolution calling for an election has been passed, the county has notified the cities in it, notice of the election has been given, and a majority of the votes cast favor it; a repeal, reduction or increase in the rate follows the same steps. Collection starts on the first day of the calendar quarter after the 30th day following a primary or general election, or after the 60th day following any other election. The Department of Revenue guide gives other examples of local rates, so this statute is one of the authorizations and is not the only one. Which authorization covers a particular city or county was not read for this layer.

The guide says a lodging business must have its tax registrations before opening, applies through the Department of Revenue's Customer Service Center, and receives an account number and a Certificate of Registration. How often returns are filed depends on the amount of tax collected; the guide says most hotels and restaurants remit sales and transient guest taxes monthly, and that monthly sales and transient guest tax returns are due on the 25th of the month following the close of the reporting period. A return is due for every reporting period even when there are no taxable sales (a zero return, which can be filed online). A retailer that files sales tax quarterly or annually can choose to file the transient guest tax return at the same time. Transient guest tax uses Form TG-1 and the Department's electronic filing.