Companies like Airbnb or Vrbo allow property owners to turn homes and to short term rentals, a popular alternative to hotels.

A bill in Frankfort would change how cities can regulate the short term rentals, making it easier for the properties to exist.

But some Kentucky leaders are against the legislation, arguing that short term rentals take away from the community's housing supply.

And they question if companies like Airbnb are paying enough taxes.

Our Emily Sisk explains their opposition.

Every town, every city in Kentucky is different, is unique, and so too is the effect that short term rentals have on those communities.

But a bill in Frankfort looks to stifle the regulations.

Cities can put on short term rentals.

And some Kentucky leaders aren't pleased.

Senate Bill 112 dictates a permanent, one size fits all approach.

Under the legislation, cities would no longer be able to impose some common short term rental restrictions, like regulating how many short term rentals can be in a neighborhood, how many properties one person can own, or requiring a conditional use permit.

Bill sponsor Republican Senator Craig Richardson of Hopkinsville says Senate Bill 112 is about protecting property owners rights.

But Bellevue Mayor Charlie Cleaves says the bill is stepping on his city's toes.

It's like using people from out of the area to make a decision for us.

That's not good.

Mayor cleaves is part of the Kentucky League of Cities, a group that he says strongly opposes the bill.

Out of all those people, we know for a fact that not one city, not one municipality in the state of Kentucky wants this.

In Bellevue, a city with about 5500 residents.

The community currently requires that short term rental owners must live in the home for at least six months and a day every year.

Cleave says that curbs many out-of-towners from buying up properties to turn into Airbnb.

We're trying to market Bellevue to all these families in that, and they need the lower end houses to start out in.

They don't want to buy the best house in Bellevue.

Neither do the Airbnbs, the ones they're buying or the ones we're trying to market to get all of these nice families moved to Bellevue.

And Hank Phillips, president of the Kentucky travel industry Association, has another problem with the company that's backing SB 112.

This bill is clearly being pushed by Airbnb, and Airbnb since January of 2023, has refused to pay all but six local governments what's called transient room taxes, and these are lodging taxes that support local tourism efforts.

Phillips said besides, in large municipalities like Louisville, Lexington, northern Kentucky and others, Airbnb does not pay this tax.

The company's main competitor, Vrbo, however, fully complies with the lodging tax.

We don't think Airbnb should be rewarded for disobeying one law on the one hand, and then over here on the other hand, asking to be shielded from local regulation, cleaves said.

Bellevue has had a problem with Airbnb properties flying under the radar without the city's approval, he said.

Recently, Bellevue leaders identified 24 Airbnbs that weren't paying any taxes to the city.

We did not know they exist, and we do not.

They weren't paying any kind of tax.

There was there was nothing they were doing because they're coached by Airbnb's not to tell anybody you're there and they don't even put the front of their buildings in their marketing anymore because they don't want us coming in, finding them and closing them down.

And Phillips said, at the end of the day, the Kentucky travel Industry Association isn't opposed to the existence of short term rentals.

In fact, he said, they can be a good resource for some rural areas.

But he believes each community should have their own say in how to regulate them.

For Kentucky Edition, I'm Emily Sisk.

Thank you Emily.

As we told you last week, Senate Bill 112 has not yet been assigned to a committee.

We'll continue following this issue in the coming days as we sit down with an Airbnb representative.

So stay.

Stay tuned for that.