Fort Wright joined several other NKY cities last week opposing a bill that would move regulation of short-term rentals to the state level.
Cities across Northern Kentucky have been enacting local regulations over the last few years, and Fort Wright isn’t the first city to express opposition Senate Bill 112. In Fort Wright, city council authorized Mayor Dave Hatter to write a letter on behalf of the city opposing SB 112 and several others.
The Kenton County Mayors Group recently met to discuss their apprehensions around the bill. Some mayors said they were concerned that without local government oversight, short-term rentals will proliferate.
Mallory Baker, the government affairs communications manager at the Kentucky League of Cities, said the bill could have the unintended effect of worsening housing affordability by reducing long-term housing with short-term rentals.
“SB 112 undermines local zoning authority by limiting cities’ ability to regulate short-term rentals based on local housing, infrastructure and neighborhood needs,” Baker said.
Fort Wright also authorized Hatter to write letters on behalf of the city opposing several other bills currently moving through the state legislature.
HB 276, sponsored by Representative Steve Doan, is “an act relating to keeping chickens on residential property.” If passed, the bill would allow Kentucky residents to keep 6 or fewer backyard chickens. These are different from chickens on a farm.
But Baker said the bill isn’t really about backyard chickens.
“It’s about local decision-making,” Baker said. “Cities already regulate this issue through local ordinances and zoning, and this bill replaces that flexibility with a one-size-fits-some state mandate.”
HB 495, “an act relating to local occupational license fees,” is of particular concern to Fort Wright. LINK spoke to Representative Stephanie Dietz, primary sponsor of HB 495, to gain some insight into its goals.
“House Bill 495 addresses a real and growing fiscal challenge facing cities like Covington as remote and hybrid work have fundamentally altered how local tax revenue is sourced, without reflecting where economic activity is actually anchored,” Dietz said.
The example she cited to LINK was that of Fidelity Investments located in Covington. While the business benefits from Covington’s infrastructure and municipal services, many Fidelity employees work from home. According to Dietz, payroll tax revenue in Covington does not accurately reflect this.
“I believe we will amend [HB 495] to only apply to Kentucky-based corporate offices with 50 or more employees that have received an economic development incentive, ensuring that it is focused on large employers that benefit the most from public investment,” Dietz said.
SB 91, primarily sponsored by Senator Steve Rawlings, is “an act relating to standardizing real property tax bills.” If passed, SB 91 would create a new, “standardized,” state-wide form for city and local property tax bills.
HB 518, sponsored by Representative Patrick Flannery, is “an act relating to the collection of local business taxes and fees.” This bill would require local occupational taxes and fees to go through the Secretary of State’s office before returning to the locality.
Hatter said he would have the letters of opposition finished and ready by the end of the month.