KANSAS CITY, Mo. — Changes are needed for Kansas City to fully benefit from the city’s short-term rentals, according to the city auditor’s office.

The office examined the impact short-term rentals have on the city’s convention and tourism taxes and feeds. The audit determined the way a state statute defines hotels in Kansas City prevents the city from taxing short-term rentals.

That means anyone who rents homes through sites like Airbnb and VRBO doesn’t pay Kansas City’s Convention and Tourism tax.

The audit determined the city missed out on collecting nearly $2.3 million between July 2021 and August 2022.

The state legislature would need to approve changing the state law to allow Kansas City to collect the tax.

The auditor’s office presented the findings during the city council’s legal review meeting Tuesday.

The audit recommends the Mayor and City Council continue to push lawmakers to change the state statute that limits Kansas City’s ability to tax short-term rentals and take steps to assess a Hotel, Motel Occupancy type fee on short-term rentals in the city.

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