ORDINANCE NO. __________, SERIES 2015
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AN ORDINANCE AMENDING SECTION 115 OF THE LOUISVILLE METRO CODE OF ORDINANCES RELATING TO SHORT TERM RENTALS (AMENDED BY SUBSTITUTION) (AS AMENDED)
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SPONSORED BY: Council Members James, Hollander and Owen
WHEREAS, today travelers and individuals in need of short term rentals are increasingly turning to the internet as a new method to secure short term rental opportunities, including the ability to rent by the room or an entire house, which has created a fluid market of residential property being offered for short term rentals (commonly referred to as "short term rentals");
WHEREAS, Metro Louisville has a growing number of dwelling units being rented for short terms, most of which are being advertised via online third party platforms;
WHEREAS, Metro Council evaluated existing laws to adequately understand licensing, taxation, zoning, health and safety issues associated with these new internet based sites for the travelers and residents of these short term rentals arrangements;
WHEREAS, Metro Council understands that Codes and Regulations and Develop Louisville have received complaints regarding short term rentals and in response has issued notices of alleged violations of the Land Development Code;
WHEREAS, Metro Council seeks to balance the interests and needs of travelers and individuals in need of short term rentals with property owners and residents while also considering the impact on the community;
WHEREAS, requiring registration and taxation of short term rentals will place short term rental arrangements on equal grounds with hotels, motels and bed and breakfast establishments.
NOW THEREFORE BE IT ORDAINED BY THE LEGISLATIVE COUNCIL OF LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT (THE COUNCIL) FOLLOWS:
SECTION I: Sections 115.505 through 115.514 of the Louisville Metro Code of Ordinances is hereby established to create subchapter entitled SHORT TERM RENTALS:
SHORT TERM RENTALS
§115.505 DEFINITIONS.
For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
DIRECTOR. The Director of the Louisville Metro Department of Develop Louisville.
HOST. Any Person who is the owner of record of residential real property, or any Person who is a lessee of residential real property pursuant to a written agreement for the lease of such real property, who offers a dwelling unit, or portion thereof, for Short Term Rental.
HOSTING PLATFORM. An internet based platform that generally allows an owner or tenant to advertise the dwelling unit through a website and provides a means for potential Transient Users to arrange Short Term Rental and payment through the Hosting Platform.
SHORT TERM RENTAL. A dwelling unit that is rented, leased or otherwise assigned for a tenancy of less than thirty (30) consecutive days duration, where no meals are served. This term does not include hotel or motel rooms, extended stay lodging facilities, bed and breakfast inns or boarding and lodging house rooms.
TRANSIENT USER. A person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of less than thirty (30) consecutive days duration.
§ 115.506 ANNUAL REGISTRATION REQUIRED;
No person, firm, or corporation shall own or operate a Short Term Rental on any premises within Jefferson County unless the Short Term Rental has been registered annually with the Louisville Metro Revenue Commission. the Louisville Metro Department of Develop Louisville and remains registered each year.
§ 115.507 ANNUAL REGISTRATION; FEE.
(A) Each annual registration for a short term rental shall be in per the form procedure prescribed by the Director, and approved by the Louisville Metro Revenue Commission and shall be available for paperless, online registration within 150 days of upon the effective date of this Ordinance. The registration form, at a minimum, shall include the following:
(1) The name, address, phone number, and email address of the Host and of a person residing or located within twenty-five (25) 50 miles of the Short Term Rental that shall be responsible for addressing any maintenance or safety concerns; and
(2) The location of the Short Term Rental.
(B) A nonrefundable fee of $25 shall accompany the registration of a Short Term Rental.
§ 115.508 COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS.
Each separate Short Term Rental shall be in compliance with any currently applicable laws and regulations of the federal, state, or local governments, as may be amended from time to time including but not limited to, laws or regulations on nondiscrimination, zoning, building, safety, property maintenance, health and sanitation, fire, electrical, plumbing, mechanical, and other applicable laws.
§ 115.509 TRANSIENT OCCUPANCY TAXES
(A) Transient Occupancy Taxes are to be collected and paid to the Metro Government pursuant to this Code; and
(B) Transient Occupancy taxes are ultimately the responsibility of the Host, but the collection and remission of all required taxes pursuant to MCO Chapters 110 and 121 may be paid by a Hosting Platform on behalf of Host if the Short Term Rental is created through a Hosting Platform that has an agreement with the Metro Government for collection and payment of such taxes to the Metro Revenue Commission.
§ 115.510 DUTIES OF A HOST.
It shall be the duty of a Host under this subchapter to ensure that:
(A) The Short Term Rental meets the smoke detector requirements set forth in MCO 94.02 and that a clearly marked evacuation plan is posted on the premises;
(B) There shall be no more than one contract per Short Term Rental at a time;
(C) At no time shall more persons reside in the Short Term Rental than two times the number of bedrooms plus four individuals; and
(D) There is no signage on the premises of the Short Term Rental advertising or identifying the short term rental.
§ 115.511 ENFORCEMENT.
In addition to the penalties provided in § 115.999 (M) and (N), the Director is authorized to enforce the provisions of this subchapter through declaratory, injunctive and other civil actions filed in any court of competent jurisdiction.
SECTION II: Louisville Metro Code of Ordinances Section 115.999 is hereby amended by the addition of a new Sub Section (N) as follows:
(N) (1) Any person who violates any provision of §§ 115.505 through 115.510 shall receive a notice of violation as a warning for a first offense. A second offense will be subject to a civil penalty of not less than $100 and no more than $500 as imposed by the Director. A third offense will be subject to a civil penalty of not less than $500 and no more than $1,000 as imposed by the Director. Each day that a violation continues after notice has been served shall be deemed a separate offense. Any person who receives a citation for violating §§ 115.505 through 115.510 may appeal the violation to the Code Enforcement Board.
(2) In addition to the penalties provided herein, the Director is authorized to pursue remedial civil actions for violations of §§ 115.505 through 115.510 by civil complaint or petition for injunctive relief, declaration of rights or other appropriate proceedings filed in the Jefferson County, Kentucky Circuit Court.
SECTION III: This Ordinance shall take effect upon its passage and approval on June 1, 2016.
SECTION IV: Existing Short Term Rentals shall have one hundred and fifty (150) days ninety (90) days from the effective date of this Ordinance to comply with the requirements of LMCO 115 as revised herein.
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_______________________________ H. Stephen Ott Metro Council Clerk |
_____________________________ David W. Tandy President of the Council |
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_______________________________ Greg Fischer Mayor |
_____________________________ Approval Date |
APPROVED AS TO FORM AND LEGALITY:
Michael J. O’Connell
Jefferson County Attorney
BY: ____________________________
BH Draft 120815
Short Term Rental - Amended by Sub -BH as of 120815 amnd.by pbw,bkn121015