Facilitators of Hotel Room Rentals are Not Marketplace Facilitators in Kansas

Jan 12th, 2022

The Kansas Department of Revenue ("Department") has released guidance regarding marketplace facilitators and their collection obligations for sales of rooms or non-hotel lodgings. As of January 1, 2022, marketplace facilitators who contract with sellers to facilitate the sale of non-hotel lodgings through their marketplaces must collect payments and tax on the sale and remit all or part of the payment to the marketplace seller. This includes additional fees for pets or no-shows. Platforms that exclusively provide advertising services or mainly provide payment processing services are excluded from this obligation.

When hotel rooms are involved, tax-collection obligations change. The definition of "marketplace facilitator" excludes entities that facilitate sales, rentals, or charges of hotel rooms. As a result, entities that facilitate sales of hotel rooms do not need to collect and remit sales or transient guest tax on behalf of the hotels. Instead, the hotels must collect, report, and remit sales and transient guest tax on the amount received from purchasers, including additional fees for pets or no-shows.