If you rent out “more than two rooms” in Topeka, you might have a new tax to pay after the Topeka City Council voted to broaden taxing language.
Topeka’s previous transient guest tax ordinance only taxed providers who rented out more than eight rooms in one location, but Topeka City Council voted to reduce that limit to tax entities that are renting out “more than two rooms,” the ordinance reads.
A transient guest is someone who stays in a hotel, motel or “tourist court for not more than 28 consecutive days.
The updated ordinance also makes “accommodations brokers” subject to the tax. An accommodation broker is a business that rents two or more rooms in one or more locations, like Airbnb.
“It’s a nightmare,” said Jay Ives, president of The Blind Tiger. “We have been hurt incredibly.”
In response to local businesses struggling, the Joint Economic Development Organization allocated $700,000 from “cash carry forward” funds to help small businesses, with the funds subject to future approval by the JEDO board.
JEDO chair and Shawnee County Commissioner Kevin Cook said at Tuesday night’s meeting that the money was only set aside to potentially help businesses, and while it could be used to create a fund for small businesses, no formal plan was established.
JEDO created a task force of three people incoming JEDO chair Mayor Michelle De La Isla, Shawnee County Commissioner Aaron Mays and city Councilmember Mike Lesser to determine how JEDO will use the money.