KANSAS CITY, Mo. — Jackson County has reclassified short-term rentals as commercial property.
This means some property owners are surprised to see a significant increase in the amount they will pay in taxes this year, but they are hoping that will change.
"It's completely devastating. It's horrific,” said Laura Williams, who owns six short-term rental properties in Kansas City.
For just one of her properties, she says will pay an additional $7,000 in property tax—an expense she hadn't budgeted for.
The increase comes after the Jackson County Assessor reclassified short-term rentals from residential to commercial.
"I'm probably going to have to shut down,” Williams said.
On Monday, the assessor's Public Information Officer, Marshanna Smith, sent a statement that said in part, "Short-term rentals, such as Airbnbs, are assessed as commercial property under Missouri state law, not county discretion."
“Specifically, Section 137.016 of the Missouri Revised Statutes defines properties that are available for rental periods of less than 30 days as 'transient housing'—a category that does not qualify as residential for assessment purposes. This interpretation has been upheld by the Missouri Supreme Court, which emphasized availability for short-term use—not primary use—as the determining factor,” the statement said.
The law mentioned by them is from 2018.
KSHB’s Fernanda Silva followed up to understand why the reclassification was made now, but did not hear back.
"She's been signing off for years that she's been doing the assessment correctly, so she's kind of indicting herself,” said Jackson County Legislator Sean Smith.
He hopes to stop the reclassification, at least for now.
At 9 a.m. Wednesday, the Jackson County Courthouse will hold a public hearing about the reclassification.
“The idea is that the ordinance doesn't say we can't do this. It simply says we shouldn't do it in 2025 in this reassessment cycle,” Smith said. “People didn't have forewarning, the legislature wasn't notified, and we're not treating all similar property owners equally, which violates the Missouri Constitution."
Williams says the timing is also a concern.
"It's been a really, really jarring thing to have that happen to us, especially right before the World Cup,” Williams said.
An Airbnb spokesperson shared the concern.
“For many Missourians, home sharing is a practical way to help afford their homes and keep up with rising costs,” said an Airbnb spokesperson.
“Without protections against property tax reclassification, unfair tax hikes on short-term rentals could force families to stop hosting, limiting Missouri’s ability to accommodate visitors and benefit from visitor spending during major events like the 2026 World Cup,” said the spokesperson.
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KSHB 41 reporter Fernanda Silva covers stories in the Northland. She also focuses on issues surrounding immigration. Share your story idea with Fernanda.
