Kentucky Court of Appeals Rules Against Airbnb

The Kentucky League of Cities (KLC) and the Kentucky Travel Industry Association (KTIA) have secured another preliminary win against short-term rental giant Airbnb in a Kentucky court.  

The Kentucky Court of Appeals has denied Airbnb’s request to overturn a Franklin Circuit Court decision, which allows KLC and KTIA to pursue the lawsuit against Airbnb on behalf of their members.  

The judgment is significant but could continue to be dragged out; Airbnb may request a discretionary review with the Kentucky Supreme Court to further delay court proceedings. However, KLC and KTIA filed a motion on July 17, 2025, in Franklin Circuit Court to move the lawsuit forward in light of the Court of Appeals decision.  

KLC and KTIA are committed to pursuing the underlying lawsuit, which asks that the Franklin Circuit Court issue a declaratory judgment that Airbnb is a “person” required to pay transient room taxes to taxing jurisdictions that assess and collect the tax. Our members deserve resolution to a simple answer in the affirmative. 

The latest judgement is yet another important battle KLC and KTIA have won. Although there are additional legal proceedings ahead, this ruling is a step in the right direction for cities across the Commonwealth.